Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Sep. 30, 2016 | Oct. 27, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | LSI INDUSTRIES INC | |
Entity Central Index Key | 763,532 | |
Trading Symbol | lyts | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 25,014,252 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | ||
Net sales | $ 84,159 | $ 85,925 | |
Cost of products and services sold | 62,821 | 62,576 | |
Restructuring costs | 503 | ||
Gross profit | 20,835 | 23,349 | |
Restructuring costs | 153 | ||
Selling and administrative expenses | 19,616 | 17,586 | |
Operating income | 1,066 | 5,763 | |
Interest (income) | (27) | (8) | |
Interest expense | 13 | 8 | |
Income before income taxes | 1,080 | 5,763 | |
Income tax expense | 251 | 2,013 | |
Net income | $ 829 | $ 3,750 | |
Earnings per common share (see Note 4) | |||
Basic (in dollars per share) | $ 0.03 | $ 0.15 | |
Basic earnings per share (in dollars per share) | $ 0.03 | $ 0.15 | |
Weighted average common shares outstanding | |||
Basic (in shares) | 25,275 | 24,764 | |
Diluted (in shares) | [1] | 25,912 | 25,194 |
[1] | Options to purchase 1,654,450 common shares and 1,683,500 common shares at September 30, 2016 and 2015, respectively, were not included in the computation of the three month period for diluted earnings per share, respectively, because the exercise price was greater than the average fair market value of the common shares. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2016 | Jun. 30, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 30,714,000 | $ 33,835,000 |
Accounts receivable, less allowance for doubtful accounts of $293 and $226, respectively | 46,234,000 | 46,975,000 |
Inventories | 43,600,000 | 44,141,000 |
Other current assets | 3,455,000 | 2,792,000 |
Total current assets | 124,003,000 | 127,743,000 |
Land | 6,995,000 | 6,978,000 |
Buildings | 39,382,000 | 39,317,000 |
Machinery and equipment | 78,514,000 | 82,628,000 |
Construction in progress | 1,731,000 | 838,000 |
126,622,000 | 129,761,000 | |
Less accumulated depreciation | (78,931,000) | (82,299,000) |
Net property, plant and equipment | 47,691,000 | 47,462,000 |
Goodwill | 10,508,000 | 10,508,000 |
Other Intangible Assets, net | 5,479,000 | 5,586,000 |
Other Long-Term Assets, net | 5,144,000 | 4,261,000 |
Total assets | 192,825,000 | 195,560,000 |
Current Liabilities | ||
Accounts payable | 14,284,000 | 13,892,000 |
Accrued expenses | 20,506,000 | 25,341,000 |
Total current liabilities | 34,790,000 | 39,233,000 |
Other Long-Term Liabilities | 1,144,000 | 807,000 |
Shareholders’ Equity | ||
Preferred shares, without par value; Authorized 1,000,000 shares, none issued | 0 | 0 |
Common shares, without par value; Authorized 40,000,000 shares; Outstanding 24,997,531 and 24,982,219 shares, respectively | 115,451,000 | 113,653,000 |
Retained earnings | 41,440,000 | 41,867,000 |
Total shareholders’ equity | 156,891,000 | 155,520,000 |
Total liabilities & shareholders’ equity | $ 192,825,000 | $ 195,560,000 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares outstanding (in shares) | 24,997,531 | 24,982,219 |
Allowance for doubtful accounts | $ 293 | $ 226 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 829,000 | $ 3,750,000 |
Non-cash items included in net income: | ||
Depreciation and amortization | 1,835,000 | 1,576,000 |
Deferred income taxes | (825,000) | (396,000) |
Deferred compensation plan | 198,000 | 175,000 |
Stock compensation expense | 1,741,000 | 1,775,000 |
Issuance of common shares as compensation | 103,000 | 49,000 |
Loss on disposition of fixed assets | 1,000 | 1,000 |
Fixed asset impairment | 273,000 | |
Allowance for doubtful accounts | 113,000 | 94,000 |
Inventory Write-down | 573,000 | 367,000 |
Changes in certain assets and liabilities – excluding sale of subsidiary | ||
Accounts receivable | 628,000 | (2,853,000) |
Inventories | (32,000) | (2,065,000) |
Refundable income taxes | 99,000 | |
Accounts payable | 121,000 | 224,000 |
Accrued expenses and other | (5,487,000) | (275,000) |
Customer prepayments | 268,000 | 431,000 |
Net cash flows provided by operating activities | 339,000 | 2,952,000 |
Cash Flows from Investing Activities | ||
Purchases of property, plant and equipment | (1,960,000) | (1,362,000) |
Net cash flows provided by (used in) investing activities | (1,960,000) | (1,362,000) |
Cash Flows from Financing Activities | ||
Cash dividends paid | (1,256,000) | (735,000) |
Proceeds and tax benefits from exercises of stock options | 58,000 | 1,335,000 |
Purchase of treasury shares | (344,000) | (228,000) |
Issuance of treasury shares | 42,000 | 14,000 |
Net cash flows provided by (used in) financing activities | (1,500,000) | 386,000 |
Increase (decrease) in cash and cash equivalents | (3,121,000) | 1,976,000 |
Cash and cash equivalents at beginning of period | 33,835,000 | 26,409,000 |
Cash and cash equivalents at end of period | $ 30,714,000 | $ 28,385,000 |
Note 1 - Interim Condensed Cons
Note 1 - Interim Condensed Consolidated Financial Statements | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Condensed Financial Statements [Text Block] | NOTE 1 - INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The interim condensed consolidated financial statements are unaudited and are prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, and rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the interim financial statements include all normal adjustments and disclosures necessary to present fairly the Company’s financial position as of September 30, 2016, the results of its operations for the three month periods ended September 30, 2016 and 2015, and its cash flows for the three month periods ended September 30, 2016 and 2015. These statements should be read in conjunction with the financial statements and footnotes included in the fiscal 2016 Annual Report on Form 10-K. Financial information as of June 30, 2016 has been derived from the Company’s audited consolidated financial statements. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consolidation: The consolidated financial statements include the accounts of LSI Industries Inc. (an Ohio corporation) and its subsidiaries (collectively, the “Company”), all of which are wholly owned. All intercompany transactions and balances have been eliminated in consolidation. Revenue Recognition: Revenue is recognized when title to goods and risk of loss have passed to the customer, there is persuasive evidence of a purchase arrangement, delivery has occurred or services have been rendered, and collectability is reasonably assured. Revenue is typically recognized at time of shipment. In certain arrangements with customers, as is the case with the sale of some of our solid-state LED (light emitting diode) video screens, revenue is recognized upon customer acceptance of the video screen at the job site. Sales are recorded net of estimated returns, rebates and discounts. Amounts received from customers prior to the recognition of revenue are accounted for as customer pre-payments and are included in accrued expenses. The Company has five sources of revenue: revenue from product sales; revenue from installation of products; service revenue generated from providing integrated design, project and construction management, site engineering and site permitting, and commissioning of lighting controls; revenue from the management of media content and digital hardware related to active digital signage; and revenue from shipping and handling. Product revenue is recognized on product-only orders upon passing of title and risk of loss, generally at time of shipment. However, product revenue related to orders where the customer requires the Company to install the product is recognized when the product is installed. The Company provides product warranties and certain post-shipment service, support and maintenance of certain solid state LED video screens. Installation revenue is recognized when the products have been fully installed. The Company is not always responsible for installation of products it sells and has no post-installation responsibilities, other than normal warranties. Service revenue from integrated design, project and construction management, and site permitting is recognized when all products at each customer site have been installed. Revenue from the management of media content and digital hardware related to active digital signage is recognized evenly over the service period with the customer. Media content service periods with most customers range from one month to one year. Shipping and handling revenue coincides with the recognition of revenue from sale of the product. In situations where the Company is responsible for re-imaging programs with multiple sites, each site is viewed as a separate unit of accounting and has stand-alone value to the customer. Revenue is recognized upon the Company’s complete performance at the location, which may include a site survey, graphics products, lighting products, and installation of products. The selling price assigned to each site is based upon an agreed upon price between the Company and its customer and reflects the estimated selling price for that site relative to the selling price for sites with similar image requirements. The Company also evaluates the appropriateness of revenue recognition in accordance with the accounting standards on software revenue recognition. Our solid-state LED video screens and active digital signage contain software elements which the Company has determined are incidental. Credit and Collections: The Company maintains allowances for doubtful accounts receivable for probable estimated losses resulting from either customer disputes or the inability of its customers to make required payments. If the financial condition of the Company’s customers were to deteriorate, resulting in their inability to make the required payments, the Company may be required to record additional allowances or charges against income. The Company determines its allowance for doubtful accounts by first considering all known collectability problems of customers’ accounts, and then applying certain percentages against the various aging categories based on the due date of the remaining receivables. The resulting allowance for doubtful accounts receivable is an estimate based upon the Company’s knowledge of its business and customer base, and historical trends. Receivables deemed uncollectable are written-off against the allowance for doubtful accounts receivable after all reasonable collection efforts have been exhausted. The Company also establishes allowances, at the time revenue is recognized, for returns, discounts, pricing and other possible customer deductions. These allowances are based upon historical trends. The following table presents the Company’s net accounts receivable at the dates indicated. (In thousands) September 30, June 30, 2016 2016 Accounts receivable $ 46,527 $ 47,201 Less: Allowance for doubtful accounts (293 ) (226 ) Accounts receivable, net $ 46,234 $ 46,975 Cash and Cash Equivalents: The cash balance includes cash and cash equivalents which have original maturities of less than three months. Cash and cash equivalents consist primarily of bank deposits and a bank money market account that is stated at cost, which approximates fair value. The Company maintains balances at financial institutions in the United States. In the United States, the FDIC limit for insurance coverage on non-interest bearing accounts is $250,000. As of September 30, 2016 and June 30, 2016, the Company had bank balances of $34,816,000 and $37,883,000, respectively, without insurance coverage. Inventories and Inventory Reserves: Inventories are stated at the lower of cost or market. Cost of inventories includes the cost of purchased raw materials and components, direct labor, as well as manufacturing overhead which is generally applied to inventory based on direct labor and on material content. Cost is determined on the first-in, first-out basis. The Company maintains an inventory reserve for probable obsolescence of its obsolete and excess inventory. The Company first determines its obsolete inventory reserve by considering specific known obsolete items, and then by applying certain percentages to specific inventory categories based upon inventory turns. The Company uses various tools, in addition to inventory turns, to identify which inventory items have the potential to become obsolete. Judgment is used to establish excess and obsolete inventory reserves and management adjusts these reserves as more information becomes available about the ultimate disposition of the inventory item. Property, Plant and Equipment and Related Depreciation: Property, plant and equipment are stated at cost. Major additions and betterments are capitalized while maintenance and repairs are expensed. For financial reporting purposes, depreciation is computed on the straight-line method over the estimated useful lives of the assets as follows: Buildings (in years) 28 - 40 Machinery and equipment (in years) 3 - 10 Computer software (in years) 3 - 8 Costs related to the purchase, internal development, and implementation of the Company’s fully integrated enterprise resource planning/business operating software system are either capitalized or expensed. Leasehold improvements are depreciated over the shorter of fifteen years or the remaining term of the lease. The Company recorded $1,728,000 and $1,450,000 of depreciation expense in the first quarter of fiscal 2017 and 2016, respectively. Intangible Assets: Intangible assets consisting of customer relationships, trade names and trademarks, patents, technology and software, and non-compete agreements are recorded on the Company's balance sheet. The definite-lived intangible assets are being amortized to expense over periods ranging between seven and twenty years. The Company evaluates definite-lived intangible assets for permanent impairment when triggering events are identified. Neither indefinite-lived intangible assets nor the excess of cost over fair value of assets acquired ("goodwill") are amortized, however they are subject to review for impairment. See additional information about goodwill and intangibles in Note 7. Fair Value: The Company has financial instruments consisting primarily of cash and cash equivalents, revolving lines of credit, accounts receivables, accounts payable, and on occasion, long-term debt. The fair value of these financial instruments approximates carrying value because of their short-term maturity and/or variable, market-driven interest rates. The Company has no financial instruments with off-balance sheet risk. Fair value measurements of nonfinancial assets and nonfinancial liabilities are primarily used in goodwill and other intangible asset impairment analyses, long-lived asset impairment analysis, in the purchase price of acquired companies (if any), and in the valuation of the contingent earn-out. The accounting guidance on fair value measurement was used to measure the fair value of these nonfinancial assets and nonfinancial liabilities. Product Warranties: The Company offers a limited warranty that its products are free from defects in workmanship and materials. The specific terms and conditions vary somewhat by product line, but generally cover defective products returned within one to five years, with some exceptions where the terms extend to 10 years, from the date of shipment. The Company records warranty liabilities to cover the estimated future costs for repair or replacement of defective returned products as well as products that need to be repaired or replaced in the field after installation. The Company calculates its liability for warranty claims by applying estimates to cover unknown claims, as well as estimating the total amount to be incurred for known warranty issues. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Changes in the Company’s warranty liabilities, which are included in accrued expenses in the accompanying consolidated balance sheets, during the periods indicated below were as follows: Three Three Fiscal Months Ended Months Ended Year Ended (In thousands) September 30, September 30, June 30, 2016 2015 2016 Balance at beginning of the period $ 5,069 $ 3,408 $ 3,408 Additions charged to expense 903 877 5,069 Deductions for repairs and Replacements (624 ) (615 ) (3,408 ) Balance at end of the period $ 5,348 $ 3,670 $ 5,069 Research and Development Costs: Research and development expenses are costs directly attributable to new product development, including the development of new technology for both existing and new products, and consist of salaries, payroll taxes, employee benefits, materials, outside legal costs and filing fees related to obtaining patents, supplies, depreciation and other administrative costs. The Company expenses as research and development all costs associated with development of software used in solid-state LED products. All costs are expensed as incurred and are included in selling and administrative expenses. Research and development costs related to both product and software development totaled $1,401,000 and $1,311,000 for the three months ended September 30, 2016 and 2015, respectively. Cost of Products and Services Sold: Cost of products sold is primarily comprised of direct materials and supplies consumed in the manufacture of products, as well as manufacturing labor, depreciation expense and direct overhead expense necessary to acquire and convert the purchased materials and supplies into finished product. Cost of products sold also includes the cost to distribute products to customers, inbound freight costs, internal transfer costs, warehousing costs and other shipping and handling activity. Cost of services sold is primarily comprised of the internal and external labor costs required to support the Company’s service revenue along with the management of media content. Earnings Per Common Share: The computation of basic earnings per common share is based on the weighted average common shares outstanding for the period net of treasury shares held in the Company’s nonqualified deferred compensation plan. The computation of diluted earnings per share is based on the weighted average common shares outstanding for the period and includes common share equivalents. Common share equivalents include the dilutive effect of stock options, restricted stock units, contingently issuable shares and common shares to be issued under a deferred compensation plan, all of which totaled 914,000 and 693,000 shares for the three month ended September 30, 2016 and 2015, respectively. See further discussion of earnings per share in Note 4. Income Taxes: The Company accounts for income taxes in accordance with the accounting guidance for income taxes. Accordingly, deferred income taxes are provided on items that are reported as either income or expense in different time periods for financial reporting purposes than they are for income tax purposes. Deferred income tax assets and liabilities are reported on the Company’s balance sheet. Significant management judgment is required in developing the Company’s income tax provision, including the estimation of taxable income and the effective income tax rates in the multiple taxing jurisdictions in which the Company operates, the estimation of the liability for uncertain income tax positions, the determination of deferred tax assets and liabilities, and any valuation allowances that might be required against deferred tax assets. New Accounting Pronouncements: In June 2014, the Financial Accounting Standards Board issued ASU 2014-09, “Revenue from Contracts with Customers.” This amended guidance supersedes and replaces all existing U.S. GAAP revenue recognition guidance. The guidance established a new revenue recognition model, changes the basis for deciding when revenue is recognized, provides new and more detailed guidance on specific revenue topics, and expands and improves disclosures about revenue. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing.” In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers: Narrow Scope Improvements and Practical Expedients.” Both of these standards clarify or improve guidance from ASU 2014-09. These standards are effective for fiscal years and interim periods within those years, beginning after December 15, 2017, or the Company’s fiscal year 2019. The Company is evaluating the impact the amended guidance will have on its financial statements. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes,” which eliminates the current requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts in the statement of financial position. This update requires that deferred tax liabilities and assets be classified as noncurrent. This update is effective for financial statements issued for fiscal years beginning April 1, 2017. This update may be applied either prospectively or retrospectively. However, early adoption is permitted and we have chosen to adopt the standard retrospectively as of June 30, 2016. As a result, prior periods have been adjusted to reflect this change. This update impacted the presentation, but not the measurement of deferred tax liabilities and assets. Comprehensive Income: The Company does not have any comprehensive income items other than net income. Subsequent Events: The Company has evaluated subsequent events for potential recognition and disclosure through the date the consolidated financial statements were filed. No items were identified during this evaluation that required adjustment to or disclosure in the accompanying financial statements. Reclassifications: Certain prior year balance sheet amounts have been reclassified to conform to new accounting guidance on balance sheet classification of deferred taxes. These reclassifications have no impact on net income, earnings per share, or operating cash flows. Use of Estimates: The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Note 3 - Segment Reporting Info
Note 3 - Segment Reporting Information | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 3 - SEGMENT REPORTING INFORMATION The accounting guidance on Segment Reporting establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information of those segments to be presented in financial statements. Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the chief operating decision maker (the Company’s Chief Executive Officer or “CODM”) in making decisions on how to allocate resources and assess performance. The Company’s three operating segments are Lighting, Graphics, and Technology, each of which has a president who is responsible for that business and reports to the CODM. Corporate and Eliminations, which captures the Company’s corporate administrative activities, will also be reported in the segment information. The Lighting Segment includes outdoor and indoor lighting utilizing both traditional and LED light sources that have been fabricated and assembled for the commercial, industrial market, the petroleum / convenience store market, the automotive dealership market, the quick service restaurant market, along with other markets the Company serves. The Graphics Segment designs, manufactures and installs exterior and interior visual image elements such as traditional graphics, active digital signage along with the management of media content related to digital signage, LED video screens, and menu board systems that are either digital or traditional by design. These products are used in visual image programs in several markets, including the petroleum / convenience store market, multi-site retail operations, banking, and restaurants. The Graphics Segment implements, installs and provides program management services related to products sold by the Graphics Segment and by the Lighting Segment. LED video screens that were previously reported in the Technology Segment in prior years’ results have been reclassified to report LED video screen sales in the Graphics Segment. The movement of the LED video screen product line was the result of a change in management responsibility of this product line to the Graphics Segment president during the first quarter of fiscal 2017. This movement aligns the product line with other digital visual image elements sold to graphics customers and is consistent with how the Company’s CODM manages the business. The movement of the video screen product line resulted in a reclassification of $73,000 of operating income from the Technology Segment to the Graphics Segment in the first quarter of fiscal 2016. The distribution channels and corresponding projected future cash flows that support a customer relationship intangible asset related to the LED video screen product line have been deemed to be adequate to support the asset. The net book value of the asset is $505,000 as of September 30, 2016 and the cash flows generated from this asset will continue to be monitored in future quarters. The Technology Segment designs, engineers, and manufactures electronic circuit boards, assemblies and sub-assemblies, and various control system products used in other applications (primarily the control of solid-state LED lighting). This operating segment sells its products directly to customers (primarily in the transportation, original equipment manufacturers, sports, and medical markets) and also has significant inter-segment sales to the Lighting Segment. The Company’s corporate administration activities are reported in a line item titled Corporate and Eliminations. This primarily includes intercompany profit in inventory eliminations, expense related to certain corporate officers and support staff, the Company’s internal audit staff, expense related to the Company’s Board of Directors, stock option expense for options granted to corporate administration employees, certain consulting expenses, investor relations activities, and a portion of the Company’s legal, auditing and professional fee expenses. Corporate identifiable assets primarily consist of cash, invested cash (if any), refundable income taxes (if any), and deferred income tax assets. There was no concentration of consolidated net sales in the three months ended September 30, 2016 or 2015. There was no concentration of accounts receivable at June 30, 2016 or 2015. Summarized financial information for the Company’s operating segments is provided for the indicated periods and as of September 30, 2016 and September 30, 2015: Three Months Ended ( In thousands) September 30 2016 2015 Net Sales: Lighting Segment $ 60,370 $ 59,075 Graphics Segment 18,894 22,330 Technology Segment 4,895 4,520 $ 84,159 $ 85,925 Operating Income (Loss): Lighting Segment $ 2,791 $ 5,682 Graphics Segment 1,017 2,234 Technology Segment 728 1,267 Corporate and Eliminations (3,470 ) (3,420 ) $ 1,066 $ 5,763 Capital Expenditures: Lighting Segment $ 1,084 $ 689 Graphics Segment 366 588 Technology Segment 12 33 Corporate and Eliminations 498 52 $ 1,960 $ 1,362 Depreciation and Amortization: Lighting Segment $ 847 $ 705 Graphics Segment 360 234 Technology Segment 345 336 Corporate and Eliminations 283 301 $ 1,835 $ 1,576 September 30, 2016 June 30, 2016 Identifiable Assets: Lighting Segment $ 92,293 $ 95,168 Graphics Segment 35,612 33,490 Technology Segment 27,910 28,348 Corporate and Eliminations 37,010 38,554 $ 192,825 $ 195,560 The segment net sales reported above represent sales to external customers. Segment operating income, which is used in management’s evaluation of segment performance, represents net sales less all operating expenses. Identifiable assets are those assets used by each segment in its operations. Corporate identifiable assets primarily consist of cash, invested cash (if any), refundable income taxes (if any), and deferred income tax assets. The Company records a 10% mark-up on intersegment revenues. Any intersegment profit in inventory is eliminated in consolidation. Intersegment revenues were eliminated in consolidation as follows: Three Months Ended September 30 (In thousands) 2016 2015 Lighting Segment inter-segment net sales $ 774 $ 614 Graphics Segment inter-segment net sales $ 132 $ 444 Technology inter-segment net sales $ 8,785 $ 9,384 The Company’s operations are located solely within the United States. As a result, the geographic distribution of the Company’s net sales and long-lived assets originate within the United States. |
Note 4 - Earnings Per Common Sh
Note 4 - Earnings Per Common Share | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 4 - EARNINGS PER COMMON SHARE The following table presents the amounts used to compute basic and diluted earnings per common share, as well as the effect of dilutive potential common shares on weighted average shares outstanding (in thousands, except per share data): Three Months Ended September 30 2016 2015 BASIC EARNINGS PER SHARE Net income $ 829 $ 3,750 Weighted average shares outstanding, net of treasury shares (a) 24,998 24,501 Weighted average vested restricted stock units outstanding 37 27 Weighted average shares outstanding in the Deferred Compensation Plan 240 236 Weighted average shares outstanding 25,275 24,764 Basic earnings per share $ 0.03 $ 0.15 DILUTED EARNINGS PER SHARE Net income $ 829 $ 3,750 Weighted average shares outstanding Basic 25,275 24,764 Effect of dilutive securities (b): Impact of common shares to be issued under stock option plans, and contingently issuable shares, if any 637 430 Weighted average shares outstanding (c) 25,912 25,194 Diluted earnings per share $ 0.03 $ 0.15 (a) Includes shares accounted for like treasury stock. (b) Calculated using the “Treasury Stock” method as if dilutive securities were exercised and the funds were used to purchase common shares at the average market price during the period. (c) Options to purchase 1,654,450 common shares and 1,683,500 common shares at September 30, 2016 and 2015, respectively, were not included in the computation of the three month period for diluted earnings per share, respectively, because the exercise price was greater than the average fair market value of the common shares. |
Note 5 - Inventories
Note 5 - Inventories | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 5 - INVENTORIES The following information is provided as of the dates indicated: September 30, June 30, (In thousands) 2016 2016 Inventories: Raw materials $ 28,533 $ 28,979 Work-in-process 4,242 4,418 Finished goods 10,825 10,744 Total Inventories $ 43,600 $ 44,141 |
Note 6 - Accrued Expenses
Note 6 - Accrued Expenses | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | NOTE 6 - ACCRUED EXPENSES The following information is provided as of the dates indicated: September 30, June 30, (In thousands) 2016 2016 Accrued Expenses: Compensation and benefits $ 6,554 $ 11,983 Customer prepayments 1,321 1,053 Accrued sales commissions 1,924 2,792 Accrued warranty 5,348 5,069 Other accrued expenses 5,359 4,444 Total Accrued Expenses $ 20,506 $ 25,341 |
Note 7 - Goodwill and Other Int
Note 7 - Goodwill and Other Intangible Assets | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 7 - GOODWILL AND OTHER INTANGIBLE ASSETS Carrying values of goodwill and other intangible assets with indefinite lives are reviewed at least annually for possible impairment. The Company may first assess qualitative factors in order to determine if goodwill and indefinite-lived intangible assets are impaired. If through the qualitative assessment it is determined that it is more likely than not that goodwill and indefinite-lived assets are not impaired, no further testing is required. If it is determined more likely than not that goodwill and indefinite-lived assets are impaired, or if the Company elects not to first assess qualitative factors, the Company’s impairment testing continues with the estimation of the fair value of goodwill and indefinite-lived intangible assets using a combination of a market approach and an income (discounted cash flow) approach, at the reporting unit level, that requires significant management judgment with respect to revenue and expense growth rates, changes in working capital and the selection and use of an appropriate discount rate. The estimates of fair value of reporting units are based on the best information available as of the date of the assessment. The use of different assumptions would increase or decrease estimated discounted future operating cash flows and could increase or decrease an impairment charge. Company management uses its judgment in assessing whether assets may have become impaired between annual impairment tests. Indicators such as adverse business conditions, economic factors and technological change or competitive activities may signal that an asset has become impaired. The Company identified its reporting units in conjunction with its annual goodwill impairment testing. The Company relies upon a number of factors, judgments and estimates when conducting its impairment testing. These include operating results, forecasts, anticipated future cash flows and marketplace data, to name a few. There are inherent uncertainties related to these factors and judgments in applying them to the analysis of goodwill impairment. The following table presents information about the Company's goodwill on the dates or for the periods indicated: Goodwill (In thousands) Lighting Graphics Technology All Other Segment Segment Segment Category Total Balance as of June 30, 2016 Goodwill $ 34,913 $ 28,690 $ 11,621 $ -- $ 75,224 Accumulated impairment losses (34,778 ) (27,525 ) (2,413 ) -- (64,716 ) Goodwill, net as of June 30, 2016 $ 135 $ 1,165 $ 9,208 $ -- $ 10,508 Balance as of September 30, 2016 Goodwill $ 34,913 28,690 11,621 -- 75,224 Accumulated impairment losses (34,778 ) (27,525 ) (2,413 ) -- (64,716 ) Goodwill, net as of September 30, 2016 $ 135 $ 1,165 $ 9,208 $ -- $ 10,508 The gross carrying amount and accumulated amortization by major other intangible asset class is as follows: September 30, 2016 Other Intangible Assets Gross (In thousands) Carrying Accumulated Net Amount Amortization Amount Amortized Intangible Assets Customer relationships $ 9,316 $ 7,654 $ 1,662 Patents 338 163 175 LED technology firmware, software 11,228 11,008 220 Trade name 460 460 -- Non-compete agreements 710 710 -- Total Amortized Intangible Assets 22,052 19,995 2,057 Indefinite-lived Intangible Assets Trademarks and trade names 3,422 -- 3,422 Total Indefinite-lived Intangible Assets 3,422 -- 3,422 Total Other Intangible Assets $ 25,474 $ 19,995 $ 5,479 June 30, 2016 Other Intangible Assets Gross Carrying Accumulated Net (In thousands) Amount Amortization Amount Amortized Intangible Assets Customer relationships $ 9,316 $ 7,581 $ 1,735 Patents 338 154 184 LED technology firmware, software 11,228 10,989 239 Trade name 460 460 -- Non-compete agreements 710 704 6 Total Amortized Intangible Assets 22,052 19,888 2,164 Indefinite-lived Intangible Assets Trademarks and trade names 3,422 -- 3,422 Total Indefinite-lived Intangible Assets 3,422 -- 3,422 Total Other Intangible Assets $ 25,474 $ 19,888 $ 5,586 (In thousands) Amortization Expense of Other Intangible Assets September 30, 2016 September 30, 2015 Three Months Ended $ 107 $ 126 The Company expects to record annual amortization expense as follows: (In thousands) 2017 $ 419 2018 $ 401 2019 $ 401 2020 $ 327 2021 $ 323 After 2021 $ 293 |
Note 8 - Revolving Lines of Cre
Note 8 - Revolving Lines of Credit | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE 8 - REVOLVING LINE OF CREDIT In March 2016, the Company renewed its $30 million unsecured revolving credit line. The line of credit expires in the third quarter of fiscal 2019. Interest on the revolving line of credit is charged based upon an increment over the LIBOR rate as periodically determined, or at the bank’s base lending rate, at the Company’s option. The increment over the LIBOR borrowing rate, as periodically determined, fluctuates between 150 and 190 basis points depending upon the ratio of indebtedness to earnings before interest, taxes, depreciation and amortization (“EBITDA”), as defined in the credit facility. The fee on the unused balance of the $30 million committed line of credit is 12.5 basis points. Under the terms of this credit facility, the Company has agreed to a negative pledge of assets and is required to comply with financial covenants that limit the amount of debt obligations, require a minimum amount of tangible net worth, and limit the ratio of indebtedness to EBITDA. As of September 30, 2016, $0.4 million of the $30 million line of credit was reserved for one letter of credit with a foreign supplier. The Company is in compliance with all of its loan covenants as of September 30, 2016 . |
Note 9 - Cash Dividends
Note 9 - Cash Dividends | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 9 - CASH DIVIDENDS The Company paid cash dividends of $1,256,000 and $735,000 in the three months ended September 30, 2016 and 2015, respectively. Dividends on restricted stock units in the amount of $13,898 and $2,160 were accrued as of September 30, 2016 and 2015, respectively. These dividends will be paid upon the vesting of the restricted stock units when shares are issued to the award recipients. In October 2016, the Board of Directors declared a regular quarterly cash dividend of $0.05 per share payable November 15, 2016 to shareholders of record as of November 7, 2016. The indicated annual cash dividend rate is $0.20 per share. |
Note 10 - Equity Compensation
Note 10 - Equity Compensation | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 10 - EQUITY COMPENSATION Stock Based Compensation The Company has an equity compensation plan that was approved by shareholders in November 2012 and that covers all of its full-time employees, outside directors and certain advisors. This 2012 Stock Incentive Plan replaced all previous equity compensation plans. The options granted or stock awards made pursuant to this plan are granted at fair market value at the date of grant or award. Service-based options granted to non-employee directors become exercisable 25% each ninety days (cumulative) from the date of grant and options granted to employees generally become exercisable 25% per year (cumulative) beginning one year after the date of grant. Performance-based options granted to employees become exercisable 33.3% per year (cumulative) beginning one year after the date of grant. The maximum contractual term of the Company’s stock options is ten years. If a stock option holder’s employment with the Company terminates by reason of death, disability or retirement, as defined in the Plan, the Plan generally provides for acceleration of vesting. The number of shares reserved for issuance is 911,875 shares, all of which were available for future grant or award as of September 30, 2016. This plan allows for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted and unrestricted stock awards, performance stock awards, and other stock awards. Service based and performance based stock options were granted and restricted stock units (“RSU’s”) were awarded during the three months ended September 30, 2016. As of September 30, 2016, a total of 3,647,927 options for common shares were outstanding from this plan as well as one previous stock option plan (which has also been approved by shareholders), and of these, a total of 1,586,188 options for common shares were vested and exercisable. As of September 30, 2016, the approximate unvested stock option expense that will be recorded as expense in future periods is $4,013,412. The weighted average time over which this expense will be recorded is approximately 29 months. Additionally, as of September 30, 2016 a total of 118,575 restricted stock units were outstanding. The approximate unvested stock compensation expense that will be recorded as expense in future periods for the RSU’s is $691,432. The weighted average time over which this expense will be recorded is approximately 35 months. Stock Options The fair value of each option on the date of grant was estimated using the Black-Scholes option pricing model. The below listed weighted average assumptions were used for grants in the periods indicated. Three Months Ended September 30 2016 Dividend yield 1.8 % Expected volatility 42.9 % Risk-free interest rate 1 % Expected life (in years) 6.0 At September 30, 2016, the 832,500 options granted during the first three months of fiscal 2017 to employees had exercise prices ranging from $10.08 to $11.06 per share, fair values ranging from of $3.39 to $3.83 per share, and remaining contractual lives of between nine years, nine months and nine years, eleven months. At September 30, 2015, the 942,800 options granted during the first three months of fiscal 2016 to employees had exercise prices ranging from $8.84 to $9.99 per share, fair values ranging from of $3.28 to $3.88 per share, and remaining contractual lives of between nine years, nine months and nine years, eleven months. The Company calculates stock option expense using the Black-Scholes model. Stock option expense is recorded on a straight line basis, or sooner if the grantee is retirement eligible as defined in the 2012 Stock Incentive Plan, with an estimated 3.4% forfeiture rate effective July 1, 2016. Previous estimated forfeiture rates were between 2.0% and 3.3% between the periods January 1, 2013 through June 30, 2016. The expected volatility of the Company’s stock was calculated based upon the historic monthly fluctuation in stock price for a period approximating the expected life of option grants. The risk-free interest rate is the rate of a five year Treasury security at constant, fixed maturity on the approximate date of the stock option grant. The expected life of outstanding options is determined to be less than the contractual term for a period equal to the aggregate group of option holders’ estimated weighted average time within which options will be exercised. It is the Company’s policy that when stock options are exercised, new common shares shall be issued. The Company recorded $1,438,443 and $1,488,753 of expense related to stock options in the three months ended September 30, 2016 and 2015, respectively. As of September 30, 2016, the Company had 3,583,341 stock options that were vested and that were expected to vest, with a weighted average exercise price of $9.17 per share, an aggregate intrinsic value of $8,698,736 and weighted average remaining contractual terms of 7.3 years. Information related to all stock options for the three months ended September 30, 2016 and 2015 is shown in the following tables: Three Months Ended September 30, 2016 Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at 6/30/16 2,976,490 $ 8.97 6.6 $ 8,338,974 Granted 832,500 $ 11.06 Forfeitures (140,250 ) $ 15.95 Exercised (20,813 ) $ 8.32 Outstanding at 9/30/16 3,647,927 $ 9.18 7.3 $ 8,783,980 Exercisable at 9/30/16 1,586,188 $ 8.91 5.1 $ 4.982,876 Three Months Ended September 30, 2015 Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at 6/30/15 2,677,436 $ 8.85 6.1 $ 4,914,601 Granted 942,800 $ 9.39 Forfeitures (20,800 ) $ 15.36 Exercised (181,899 ) $ 7.31 Outstanding at 9/30/15 3,417,537 $ 9.04 7.0 $ 2,759,444 Exercisable at 9/30/15 1,537,151 $ 10.15 4.1 $ 1,270,934 The following table presents information related to unvested stock options: Shares Weighted-Average Grant Date Fair Value Unvested at June 30, 2016 1,663,505 $ 3.39 Granted 832,500 $ 3.83 Vested (408,766 ) $ 3.26 Forfeited (25,500 ) $ 3.50 Unvested at September 30, 2016 2,061,739 $ 3.59 The weighted average grant date fair value of options granted during the three months ended September 30, 2016 and 2015 was $3.83 and $3.65, respectively. The aggregate intrinsic value of options exercised during the three months ended September 30, 2016 and 2015 was $50,160 and $429,294, respectively. The aggregate grant date fair value of options that vested during the three months ended September 30, 2016 and 2015 was $1,334,248 and $336,634, respectively. The Company received $173,185 and $1,328,907 of cash from employees who exercised options in the three month periods ended September 30, 2016 and 2015, respectively. In the first three months of fiscal 2017 the Company recorded $78,040 as a reduction of federal income taxes payable, $165,856 as an increase in common stock, $8,880 as a reduction of income tax expense, and $183,665 as a reduction of the deferred tax asset related to the issuance of RSU’s and the exercises of stock options in which the employees sold the common shares prior to the passage of twelve months from the date of exercise. In the first three months of fiscal 2016 the Company recorded $150,253 as a reduction of federal income taxes payable, $6,640 as an increase in common stock, $20,464 as a reduction of income tax expense, and $123,149 as a reduction of the deferred tax asset related to the exercises of stock options in which the employees sold the common shares prior to the passage of twelve months from the date of exercise. Restricted Stock Units A total of 71,700 restricted stock units with a fair value of $11.06 per share were awarded to employees during the three months ended September 30, 2016. A total of 72,000 restricted stock units with a fair value of $9.39 per share were awarded to employees during the three months ended September 30, 2015. The Company determined the fair value of the awards based on the closing price of the Company stock on the date the restricted stock units were awarded. The RSU’s have a four year ratable vesting period. The restricted stock units are non-voting, but accrue cash dividends at the same per share rate as those cash dividends declared and paid on LSI’s common stock. Dividends on RSU’s in the amount of $13,898 and $2,160 were accrued as of September 30, 2016 and 2015, respectively. Accrued dividends are paid to the holder upon vesting of the RSU’s and issuance of shares. The following table presents information related to restricted stock units: Shares Weighted-Average Grant Date Fair Value Unvested at June 30, 2016 62,500 $ 9.39 Awarded 71,700 $ 11.06 Shares Issued (15,625 ) $ 9.39 Unvested at September 30, 2016 118,575 $ 10.40 As of September 30, 2016, the 118,575 restricted stock units had a remaining contractual life of between 2 years 9 months and 3 years 9 months. Of the 118,575 RSU’s outstanding, 113,868 are vested and expected to vest in the future. An estimated forfeiture rate of 3.4% was used in the calculation of expense related to the restricted stock units. The Company recorded $302,301 of expense related to restricted stock units in the three months ended September 30, 2016. As of September 30, 2015, the 72,000 outstanding restricted stock units had a remaining contractual life of 3 years, 9 months. Of the 72,000 RSU’s outstanding, 69,081 are expected to vest as of September 30, 2015. An estimated forfeiture rate of 3.3% was used in the calculation of expense related to the restricted stock units. The Company recorded $286,257 of expense related to restricted stock units in the three months ended September 30, 2015. Director and Employee Stock Compensation Awards The Company awarded a total of 9,470 and 5,260 common shares in the three months ended September 30, 2016 and 2015, respectively, as stock compensation awards. These common shares were valued at their approximate $103,100 and $49,300 fair market values based on their stock price at dates of issuance multiplied by the number of common shares awarded, respectively, pursuant to the compensation programs for non-employee directors who receive a portion of their compensation as an award of Company stock and for employees who received a nominal recognition award in the form of company stock. Stock compensation awards are made in the form of newly issued common shares of the Company. Deferred Compensation Plan The Company has a non-qualified deferred compensation plan providing for both Company contributions and participant deferrals of compensation. This plan is fully funded in a Rabbi Trust. All plan investments are in common shares of the Company. As of September 30, 2016 there were 30 participants, all with fully vested account balances. A total of 258,699 common shares with a cost of $2,469,034, and 228,103 common shares with a cost of $2,167,717 were held in the plan as of September 30, 2016 and June 30, 2016, respectively, and, accordingly, have been recorded as treasury shares. The change in the number of shares held by this plan is the net result of share purchases and sales on the open stock market for compensation deferred into the plan and for distributions to terminated employees. The Company does not issue new common shares for purposes of the non-qualified deferred compensation plan. The Company used approximately $343,700 and $228,200 to purchase 34,587 and 24,914 common shares of the Company in the open stock market during the three months ended September 30, 2016 and 2015, respectively, for either employee salary deferrals or Company contributions into the non-qualified deferred compensation plan. For fiscal year 2017, the Company estimates the Rabbi Trust for the Nonqualified Deferred Compensation Plan will make net repurchases in the range of 45,000 to 50,000 common shares of the Company. The Company does not currently repurchase its own common shares for any other purpose. |
Note 11 - Supplemental Cash Flo
Note 11 - Supplemental Cash Flow Information | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE 11 - SUPPLEMENTAL CASH FLOW INFORMATION (In thousands) Three Months Ended September 30 2016 2015 Cash payments: Interest $ 13 $ 13 Income taxes $ 1,022 $ 74 |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 1 2 - COMMITMENTS AND CONTINGENCIES As part of the acquisition of Virticus Corporation in March 2012, a contingent earn-out liability of $877,000 was recorded based on the fair value of estimated earn-out payments. This discounted liability was to be paid over a five year period, contingent upon reaching certain sales in each year over the five year period (fiscal year 2013 through fiscal year 2017). In fiscal 2013, as a result of modified sales forecasts for LSI Virticus, the fair value of the earn-out liability was adjusted to zero. As of September 30, 2016, the maximum potential undiscounted liability related to the earn-out is $236,000, which is based upon the achievement of a defined level of sales of lighting control systems in fiscal year 2017. The likelihood of this occurring is not considered probable. The Company is party to various negotiations, customer bankruptcies, and legal proceedings arising in the normal course of business. The Company provides reserves for these matters when a loss is probable and reasonably estimable. The Company does not disclose a range of potential loss because the likelihood of such a loss is remote. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s financial position, results of operations, cash flows or liquidity. The Company may occasionally issue a standby letter of credit in favor of third parties. As of September 30, 2016, there was a standby letter of credit totaling $0.4 million to a foreign supplier related to the purchase of inventory. |
Note 13 - Severance Costs
Note 13 - Severance Costs | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 1 3 – SEVERANCE COSTS The Company recorded severance expense of $145,000 and $13,000 in the three months ended September 30, 2016 and 2015, respectively. This severance expense was related to reductions in staffing not related to plant restructuring. See further discussion of restructuring expenses in Note 14. The activity in the Company’s Accrued Severance Liability is as follows for the periods indicated: Three Three Fiscal Months Ended Months Ended Year Ended (In thousands) September 30, September 30, June 30, 2016 2015 2016 Balance at beginning of the period $ 39 $ 379 $ 379 Accrual of expense 145 13 469 Payments (119 ) (200 ) (742 ) Adjustments -- (58 ) (67 ) Balance at end of the period $ 65 $ 134 $ 39 |
Note 14 - Restructuring Costs
Note 14 - Restructuring Costs | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 1 4 – RESTRUCTURING COSTS On September 22, 2016, the Company announced plans to close its lighting facility in Kansas City, Kansas. The decision was based upon the market shift away from fluorescent and other technologies and the rapid movement to LED lighting which is produced at other LSI facilities. The Company expects to continue to meet the demand for products containing both fluorescent and high intensity discharge light sources as long as these products are commercially viable. The Company anticipates that the closure of the Kansas City facility will occur not later than December 31, 2016. Total restructuring costs related to the closure of the Kansas City facility are expected to be approximately $1.0 million. These costs primarily include employee-related costs (primarily severance), the impairment of manufacturing equipment, plant shut down expenses, expenses related to the preparation of the facility for sale, legal expenses, and other related costs. In addition, there was also an inventory write-down of $400,000 recorded in the first quarter of fiscal 2017 . The write-down was related to inventory that was previously realizable until the decision in the first quarter of fiscal 2017 to shut down the Kanas City plant due to the planned curtailment of the manufacturing of fluorescent light fixtures. The Company owns the facility in Kansas City and expects to realize a gain when the facility is sold. The closure of this facility is expected to result in annual net operating profit improvement and cost savings of approximately $1.4 million before consideration of the restructuring and inventory write-down expenses. The savings as result of closure of the facility are expected to be realized starting in the third quarter of fiscal 2017. The Company also announced the consolidation of the Beaverton, Oregon facility into other LSI facilities. The light assembly of products in the Beaverton facility was moved to the company’s Columbus, Ohio facility, and the administration and engineering functions were moved to an LSI facility in Cincinnati, Ohio. This consolidation was completed September 30, 2016. As a result of this consolidation, a restructuring charge of $365,000 was recorded in the first quarter of fiscal 2017, with the majority of this representing the costs related to the remaining period of the facility’s lease and severance costs for employees who formerly worked in the Beaverton facility. The consolidation of this facility and net reduction of employment is expected to result in annual cost savings of approximately $450,000. The savings as a result of the consolidation of this facility are expected to be realized starting in the second quarter of fiscal 2017. The following table presents information about restructuring costs for the periods indicated: Three Total Expected Total Months Ended to be Recognized Fiscal 2017 (In thousands) September 30, in Remainder of Restructuring 2016 Fiscal 2017 Expenses Severance and other termination benefits $ 165 $ 471 $ 636 Lease obligation 213 -- 213 Impairment of fixed assets and accelerated depreciation 273 90 363 Other 5 125 130 Total $ 656 $ 686 $ 1,342 Impairment charges of $273,000 were recorded in the first quarter of fiscal 2017 related to machinery and equipment at the Kansas City and Beaverton facilities. Of the $273,000 of impairment expense, $242,000 was recorded in the Lighting Segment and $31,000 was recorded in the Technology Segment. The fair value of the equipment evaluated for impairment was determined by comparing the future undiscounted cash flows to the carrying value of the assets. The future cash flows are from the remaining use of the assets as well as the cash flows expected to result from the future sale of the assets. The following table presents restructuring costs incurred by line item in the consolidated statement of operations in which the costs are included: Three Months Ended (In thousands) September 30 2016 Cost of Goods Sold $ 503 Operating Expenses 153 Total $ 656 The following table presents information about restructuring costs by segment for the periods indicated: Three Total Expected Total Months Ended to be Recognized Fiscal 2017 (In thousands) September 30, In Remainder of Restructuring 2016 Fiscal 2017 Expenses Lighting Segment $ 291 $ 686 $ 977 Graphics Segment -- -- -- Technology Segment 254 -- 254 Corporate and Eliminations 111 -- 111 Total $ 656 $ 686 $ 1,342 The above tables exclude the expected gain on the sale of the Kansas City facility. Additionally, the tables do not include expense of $400,000 recorded during the first quarter of fiscal 2017 related to the write-down of inventory included as cost of sales as part of the Kansas City facility closure. The following table presents a roll forward of the beginning and ending liability balances related to the restructuring costs: (In thousands) Balance as of June 30, 2016 Restructuring Expense Payments Adjustments Balance as of September 30, 2016 Severance and termination benefits $ -- $ 165 $ (67 ) $ -- $ 98 Lease obligation -- 213 -- -- 213 Other -- 5 -- -- 5 Total $ -- $ 383 $ (67 ) $ -- $ 316 The above table does not include fixed asset impairment expense of $273,000 recorded in the first three months of fiscal 2017. Refer to Note 13 for information regarding additional severance expenses that are not included in the restructuring costs identified in this footnote. |
Note 15 - Income Taxes
Note 15 - Income Taxes | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 1 5 – INCOME TAXES The Company's effective income tax rate is based on expected income, statutory rates and tax planning opportunities available in the various jurisdictions in which it operates. For interim financial reporting, the Company estimates the annual income tax rate based on projected taxable income for the full year and records a quarterly income tax provision or benefit in accordance with the anticipated annual rate. The Company refines the estimates of the year's taxable income as new information becomes available, including actual year-to-date financial results. This continual estimation process often results in a change to the expected effective income tax rate for the year. When this occurs, the Company adjusts the income tax provision during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected income tax rate. Significant judgment is required in determining the effective tax rate and in evaluating tax positions. Three Months Ended September 30 2016 2015 Reconciliation to effective tax rate: Provision for income taxes at the anticipated annual tax rate 32.0 % 35.6 % Uncertain tax positions (1.3 ) (0.3 ) Deferred tax asset adjustment (6.7 ) -- Other (0.8 ) (0.4 ) Effective tax rate 23.2 % 34.9 % |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Consolidation: The consolidated financial statements include the accounts of LSI Industries Inc. (an Ohio corporation) and its subsidiaries (collectively, the “Company”), all of which are wholly owned. All intercompany transactions and balances have been eliminated in consolidation. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition: Revenue is recognized when title to goods and risk of loss have passed to the customer, there is persuasive evidence of a purchase arrangement, delivery has occurred or services have been rendered, and collectability is reasonably assured. Revenue is typically recognized at time of shipment. In certain arrangements with customers, as is the case with the sale of some of our solid-state LED (light emitting diode) video screens, revenue is recognized upon customer acceptance of the video screen at the job site. Sales are recorded net of estimated returns, rebates and discounts. Amounts received from customers prior to the recognition of revenue are accounted for as customer pre-payments and are included in accrued expenses. The Company has five sources of revenue: revenue from product sales; revenue from installation of products; service revenue generated from providing integrated design, project and construction management, site engineering and site permitting, and commissioning of lighting controls; revenue from the management of media content and digital hardware related to active digital signage; and revenue from shipping and handling. Product revenue is recognized on product-only orders upon passing of title and risk of loss, generally at time of shipment. However, product revenue related to orders where the customer requires the Company to install the product is recognized when the product is installed. The Company provides product warranties and certain post-shipment service, support and maintenance of certain solid state LED video screens. Installation revenue is recognized when the products have been fully installed. The Company is not always responsible for installation of products it sells and has no post-installation responsibilities, other than normal warranties. Service revenue from integrated design, project and construction management, and site permitting is recognized when all products at each customer site have been installed. Revenue from the management of media content and digital hardware related to active digital signage is recognized evenly over the service period with the customer. Media content service periods with most customers range from one month to one year. Shipping and handling revenue coincides with the recognition of revenue from sale of the product. In situations where the Company is responsible for re-imaging programs with multiple sites, each site is viewed as a separate unit of accounting and has stand-alone value to the customer. Revenue is recognized upon the Company’s complete performance at the location, which may include a site survey, graphics products, lighting products, and installation of products. The selling price assigned to each site is based upon an agreed upon price between the Company and its customer and reflects the estimated selling price for that site relative to the selling price for sites with similar image requirements. The Company also evaluates the appropriateness of revenue recognition in accordance with the accounting standards on software revenue recognition. Our solid-state LED video screens and active digital signage contain software elements which the Company has determined are incidental. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Credit and Collections: The Company maintains allowances for doubtful accounts receivable for probable estimated losses resulting from either customer disputes or the inability of its customers to make required payments. If the financial condition of the Company’s customers were to deteriorate, resulting in their inability to make the required payments, the Company may be required to record additional allowances or charges against income. The Company determines its allowance for doubtful accounts by first considering all known collectability problems of customers’ accounts, and then applying certain percentages against the various aging categories based on the due date of the remaining receivables. The resulting allowance for doubtful accounts receivable is an estimate based upon the Company’s knowledge of its business and customer base, and historical trends. Receivables deemed uncollectable are written-off against the allowance for doubtful accounts receivable after all reasonable collection efforts have been exhausted. The Company also establishes allowances, at the time revenue is recognized, for returns, discounts, pricing and other possible customer deductions. These allowances are based upon historical trends. The following table presents the Company’s net accounts receivable at the dates indicated. (In thousands) September 30, June 30, 2016 2016 Accounts receivable $ 46,527 $ 47,201 Less: Allowance for doubtful accounts (293 ) (226 ) Accounts receivable, net $ 46,234 $ 46,975 |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents: The cash balance includes cash and cash equivalents which have original maturities of less than three months. Cash and cash equivalents consist primarily of bank deposits and a bank money market account that is stated at cost, which approximates fair value. The Company maintains balances at financial institutions in the United States. In the United States, the FDIC limit for insurance coverage on non-interest bearing accounts is $250,000. As of September 30, 2016 and June 30, 2016, the Company had bank balances of $34,816,000 and $37,883,000, respectively, without insurance coverage. |
Inventory, Policy [Policy Text Block] | Inventories and Inventory Reserves: Inventories are stated at the lower of cost or market. Cost of inventories includes the cost of purchased raw materials and components, direct labor, as well as manufacturing overhead which is generally applied to inventory based on direct labor and on material content. Cost is determined on the first-in, first-out basis. The Company maintains an inventory reserve for probable obsolescence of its obsolete and excess inventory. The Company first determines its obsolete inventory reserve by considering specific known obsolete items, and then by applying certain percentages to specific inventory categories based upon inventory turns. The Company uses various tools, in addition to inventory turns, to identify which inventory items have the potential to become obsolete. Judgment is used to establish excess and obsolete inventory reserves and management adjusts these reserves as more information becomes available about the ultimate disposition of the inventory item. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment and Related Depreciation: Property, plant and equipment are stated at cost. Major additions and betterments are capitalized while maintenance and repairs are expensed. For financial reporting purposes, depreciation is computed on the straight-line method over the estimated useful lives of the assets as follows: Buildings (in years) 28 - 40 Machinery and equipment (in years) 3 - 10 Computer software (in years) 3 - 8 Costs related to the purchase, internal development, and implementation of the Company’s fully integrated enterprise resource planning/business operating software system are either capitalized or expensed. Leasehold improvements are depreciated over the shorter of fifteen years or the remaining term of the lease. The Company recorded $1,728,000 and $1,450,000 of depreciation expense in the first quarter of fiscal 2017 and 2016, respectively. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets: Intangible assets consisting of customer relationships, trade names and trademarks, patents, technology and software, and non-compete agreements are recorded on the Company's balance sheet. The definite-lived intangible assets are being amortized to expense over periods ranging between seven and twenty years. The Company evaluates definite-lived intangible assets for permanent impairment when triggering events are identified. Neither indefinite-lived intangible assets nor the excess of cost over fair value of assets acquired ("goodwill") are amortized, however they are subject to review for impairment. See additional information about goodwill and intangibles in Note 7. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value: The Company has financial instruments consisting primarily of cash and cash equivalents, revolving lines of credit, accounts receivables, accounts payable, and on occasion, long-term debt. The fair value of these financial instruments approximates carrying value because of their short-term maturity and/or variable, market-driven interest rates. The Company has no financial instruments with off-balance sheet risk. Fair value measurements of nonfinancial assets and nonfinancial liabilities are primarily used in goodwill and other intangible asset impairment analyses, long-lived asset impairment analysis, in the purchase price of acquired companies (if any), and in the valuation of the contingent earn-out. The accounting guidance on fair value measurement was used to measure the fair value of these nonfinancial assets and nonfinancial liabilities. |
Standard Product Warranty, Policy [Policy Text Block] | Product Warranties: The Company offers a limited warranty that its products are free from defects in workmanship and materials. The specific terms and conditions vary somewhat by product line, but generally cover defective products returned within one to five years, with some exceptions where the terms extend to 10 years, from the date of shipment. The Company records warranty liabilities to cover the estimated future costs for repair or replacement of defective returned products as well as products that need to be repaired or replaced in the field after installation. The Company calculates its liability for warranty claims by applying estimates to cover unknown claims, as well as estimating the total amount to be incurred for known warranty issues. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Changes in the Company’s warranty liabilities, which are included in accrued expenses in the accompanying consolidated balance sheets, during the periods indicated below were as follows: Three Three Fiscal Months Ended Months Ended Year Ended (In thousands) September 30, September 30, June 30, 2016 2015 2016 Balance at beginning of the period $ 5,069 $ 3,408 $ 3,408 Additions charged to expense 903 877 5,069 Deductions for repairs and Replacements (624 ) (615 ) (3,408 ) Balance at end of the period $ 5,348 $ 3,670 $ 5,069 |
Research, Development, and Computer Software, Policy [Policy Text Block] | Research and Development Costs: Research and development expenses are costs directly attributable to new product development, including the development of new technology for both existing and new products, and consist of salaries, payroll taxes, employee benefits, materials, outside legal costs and filing fees related to obtaining patents, supplies, depreciation and other administrative costs. The Company expenses as research and development all costs associated with development of software used in solid-state LED products. All costs are expensed as incurred and are included in selling and administrative expenses. Research and development costs related to both product and software development totaled $1,401,000 and $1,311,000 for the three months ended September 30, 2016 and 2015, respectively. |
Cost of Sales, Policy [Policy Text Block] | Cost of Products and Services Sold: Cost of products sold is primarily comprised of direct materials and supplies consumed in the manufacture of products, as well as manufacturing labor, depreciation expense and direct overhead expense necessary to acquire and convert the purchased materials and supplies into finished product. Cost of products sold also includes the cost to distribute products to customers, inbound freight costs, internal transfer costs, warehousing costs and other shipping and handling activity. Cost of services sold is primarily comprised of the internal and external labor costs required to support the Company’s service revenue along with the management of media content. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Common Share: The computation of basic earnings per common share is based on the weighted average common shares outstanding for the period net of treasury shares held in the Company’s nonqualified deferred compensation plan. The computation of diluted earnings per share is based on the weighted average common shares outstanding for the period and includes common share equivalents. Common share equivalents include the dilutive effect of stock options, restricted stock units, contingently issuable shares and common shares to be issued under a deferred compensation plan, all of which totaled 914,000 and 693,000 shares for the three month ended September 30, 2016 and 2015, respectively. See further discussion of earnings per share in Note 4. |
Income Tax, Policy [Policy Text Block] | Income Taxes: The Company accounts for income taxes in accordance with the accounting guidance for income taxes. Accordingly, deferred income taxes are provided on items that are reported as either income or expense in different time periods for financial reporting purposes than they are for income tax purposes. Deferred income tax assets and liabilities are reported on the Company’s balance sheet. Significant management judgment is required in developing the Company’s income tax provision, including the estimation of taxable income and the effective income tax rates in the multiple taxing jurisdictions in which the Company operates, the estimation of the liability for uncertain income tax positions, the determination of deferred tax assets and liabilities, and any valuation allowances that might be required against deferred tax assets. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements: In June 2014, the Financial Accounting Standards Board issued ASU 2014-09, “Revenue from Contracts with Customers.” This amended guidance supersedes and replaces all existing U.S. GAAP revenue recognition guidance. The guidance established a new revenue recognition model, changes the basis for deciding when revenue is recognized, provides new and more detailed guidance on specific revenue topics, and expands and improves disclosures about revenue. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing.” In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers: Narrow Scope Improvements and Practical Expedients.” Both of these standards clarify or improve guidance from ASU 2014-09. These standards are effective for fiscal years and interim periods within those years, beginning after December 15, 2017, or the Company’s fiscal year 2019. The Company is evaluating the impact the amended guidance will have on its financial statements. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes,” which eliminates the current requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts in the statement of financial position. This update requires that deferred tax liabilities and assets be classified as noncurrent. This update is effective for financial statements issued for fiscal years beginning April 1, 2017. This update may be applied either prospectively or retrospectively. However, early adoption is permitted and we have chosen to adopt the standard retrospectively as of June 30, 2016. As a result, prior periods have been adjusted to reflect this change. This update impacted the presentation, but not the measurement of deferred tax liabilities and assets. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income: The Company does not have any comprehensive income items other than net income. |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events: The Company has evaluated subsequent events for potential recognition and disclosure through the date the consolidated financial statements were filed. No items were identified during this evaluation that required adjustment to or disclosure in the accompanying financial statements. |
Reclassification, Policy [Policy Text Block] | Reclassifications: Certain prior year balance sheet amounts have been reclassified to conform to new accounting guidance on balance sheet classification of deferred taxes. These reclassifications have no impact on net income, earnings per share, or operating cash flows. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates: The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Note 2 - Summary of Significa22
Note 2 - Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | (In thousands) September 30, June 30, 2016 2016 Accounts receivable $ 46,527 $ 47,201 Less: Allowance for doubtful accounts (293 ) (226 ) Accounts receivable, net $ 46,234 $ 46,975 |
Property, Plant and Equipment [Table Text Block] | Buildings (in years) 28 - 40 Machinery and equipment (in years) 3 - 10 Computer software (in years) 3 - 8 |
Schedule of Product Warranty Liability [Table Text Block] | Three Three Fiscal Months Ended Months Ended Year Ended (In thousands) September 30, September 30, June 30, 2016 2015 2016 Balance at beginning of the period $ 5,069 $ 3,408 $ 3,408 Additions charged to expense 903 877 5,069 Deductions for repairs and Replacements (624 ) (615 ) (3,408 ) Balance at end of the period $ 5,348 $ 3,670 $ 5,069 |
Note 3 - Segment Reporting In23
Note 3 - Segment Reporting Information (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended ( In thousands) September 30 2016 2015 Net Sales: Lighting Segment $ 60,370 $ 59,075 Graphics Segment 18,894 22,330 Technology Segment 4,895 4,520 $ 84,159 $ 85,925 Operating Income (Loss): Lighting Segment $ 2,791 $ 5,682 Graphics Segment 1,017 2,234 Technology Segment 728 1,267 Corporate and Eliminations (3,470 ) (3,420 ) $ 1,066 $ 5,763 Capital Expenditures: Lighting Segment $ 1,084 $ 689 Graphics Segment 366 588 Technology Segment 12 33 Corporate and Eliminations 498 52 $ 1,960 $ 1,362 Depreciation and Amortization: Lighting Segment $ 847 $ 705 Graphics Segment 360 234 Technology Segment 345 336 Corporate and Eliminations 283 301 $ 1,835 $ 1,576 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | September 30, 2016 June 30, 2016 Identifiable Assets: Lighting Segment $ 92,293 $ 95,168 Graphics Segment 35,612 33,490 Technology Segment 27,910 28,348 Corporate and Eliminations 37,010 38,554 $ 192,825 $ 195,560 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended September 30 (In thousands) 2016 2015 Lighting Segment inter-segment net sales $ 774 $ 614 Graphics Segment inter-segment net sales $ 132 $ 444 Technology inter-segment net sales $ 8,785 $ 9,384 |
Note 4 - Earnings Per Common 24
Note 4 - Earnings Per Common Share (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30 2016 2015 BASIC EARNINGS PER SHARE Net income $ 829 $ 3,750 Weighted average shares outstanding, net of treasury shares (a) 24,998 24,501 Weighted average vested restricted stock units outstanding 37 27 Weighted average shares outstanding in the Deferred Compensation Plan 240 236 Weighted average shares outstanding 25,275 24,764 Basic earnings per share $ 0.03 $ 0.15 DILUTED EARNINGS PER SHARE Net income $ 829 $ 3,750 Weighted average shares outstanding Basic 25,275 24,764 Effect of dilutive securities (b): Impact of common shares to be issued under stock option plans, and contingently issuable shares, if any 637 430 Weighted average shares outstanding (c) 25,912 25,194 Diluted earnings per share $ 0.03 $ 0.15 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, June 30, (In thousands) 2016 2016 Inventories: Raw materials $ 28,533 $ 28,979 Work-in-process 4,242 4,418 Finished goods 10,825 10,744 Total Inventories $ 43,600 $ 44,141 |
Note 6 - Accrued Expenses (Tabl
Note 6 - Accrued Expenses (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | September 30, June 30, (In thousands) 2016 2016 Accrued Expenses: Compensation and benefits $ 6,554 $ 11,983 Customer prepayments 1,321 1,053 Accrued sales commissions 1,924 2,792 Accrued warranty 5,348 5,069 Other accrued expenses 5,359 4,444 Total Accrued Expenses $ 20,506 $ 25,341 |
Note 7 - Goodwill and Other I27
Note 7 - Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Goodwill (In thousands) Lighting Graphics Technology All Other Segment Segment Segment Category Total Balance as of June 30, 2016 Goodwill $ 34,913 $ 28,690 $ 11,621 $ -- $ 75,224 Accumulated impairment losses (34,778 ) (27,525 ) (2,413 ) -- (64,716 ) Goodwill, net as of June 30, 2016 $ 135 $ 1,165 $ 9,208 $ -- $ 10,508 Balance as of September 30, 2016 Goodwill $ 34,913 28,690 11,621 -- 75,224 Accumulated impairment losses (34,778 ) (27,525 ) (2,413 ) -- (64,716 ) Goodwill, net as of September 30, 2016 $ 135 $ 1,165 $ 9,208 $ -- $ 10,508 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | September 30, 2016 Other Intangible Assets Gross (In thousands) Carrying Accumulated Net Amount Amortization Amount Amortized Intangible Assets Customer relationships $ 9,316 $ 7,654 $ 1,662 Patents 338 163 175 LED technology firmware, software 11,228 11,008 220 Trade name 460 460 -- Non-compete agreements 710 710 -- Total Amortized Intangible Assets 22,052 19,995 2,057 Indefinite-lived Intangible Assets Trademarks and trade names 3,422 -- 3,422 Total Indefinite-lived Intangible Assets 3,422 -- 3,422 Total Other Intangible Assets $ 25,474 $ 19,995 $ 5,479 June 30, 2016 Other Intangible Assets Gross Carrying Accumulated Net (In thousands) Amount Amortization Amount Amortized Intangible Assets Customer relationships $ 9,316 $ 7,581 $ 1,735 Patents 338 154 184 LED technology firmware, software 11,228 10,989 239 Trade name 460 460 -- Non-compete agreements 710 704 6 Total Amortized Intangible Assets 22,052 19,888 2,164 Indefinite-lived Intangible Assets Trademarks and trade names 3,422 -- 3,422 Total Indefinite-lived Intangible Assets 3,422 -- 3,422 Total Other Intangible Assets $ 25,474 $ 19,888 $ 5,586 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | (In thousands) Amortization Expense of Other Intangible Assets September 30, 2016 September 30, 2015 Three Months Ended $ 107 $ 126 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | (In thousands) 2017 $ 419 2018 $ 401 2019 $ 401 2020 $ 327 2021 $ 323 After 2021 $ 293 |
Note 10 - Equity Compensation (
Note 10 - Equity Compensation (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended September 30 2016 Dividend yield 1.8 % Expected volatility 42.9 % Risk-free interest rate 1 % Expected life (in years) 6.0 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Three Months Ended September 30, 2016 Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at 6/30/16 2,976,490 $ 8.97 6.6 $ 8,338,974 Granted 832,500 $ 11.06 Forfeitures (140,250 ) $ 15.95 Exercised (20,813 ) $ 8.32 Outstanding at 9/30/16 3,647,927 $ 9.18 7.3 $ 8,783,980 Exercisable at 9/30/16 1,586,188 $ 8.91 5.1 $ 4.982,876 Three Months Ended September 30, 2015 Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at 6/30/15 2,677,436 $ 8.85 6.1 $ 4,914,601 Granted 942,800 $ 9.39 Forfeitures (20,800 ) $ 15.36 Exercised (181,899 ) $ 7.31 Outstanding at 9/30/15 3,417,537 $ 9.04 7.0 $ 2,759,444 Exercisable at 9/30/15 1,537,151 $ 10.15 4.1 $ 1,270,934 |
Schedule of Nonvested Share Activity [Table Text Block] | Shares Weighted-Average Grant Date Fair Value Unvested at June 30, 2016 1,663,505 $ 3.39 Granted 832,500 $ 3.83 Vested (408,766 ) $ 3.26 Forfeited (25,500 ) $ 3.50 Unvested at September 30, 2016 2,061,739 $ 3.59 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Shares Weighted-Average Grant Date Fair Value Unvested at June 30, 2016 62,500 $ 9.39 Awarded 71,700 $ 11.06 Shares Issued (15,625 ) $ 9.39 Unvested at September 30, 2016 118,575 $ 10.40 |
Note 11 - Supplemental Cash F29
Note 11 - Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | (In thousands) Three Months Ended September 30 2016 2015 Cash payments: Interest $ 13 $ 13 Income taxes $ 1,022 $ 74 |
Note 13 - Severance Costs (Tabl
Note 13 - Severance Costs (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Employee Severance [Member] | |
Notes Tables | |
Schedule of Accrued Severance Liability [Table Text Block] | Three Three Fiscal Months Ended Months Ended Year Ended (In thousands) September 30, September 30, June 30, 2016 2015 2016 Balance at beginning of the period $ 39 $ 379 $ 379 Accrual of expense 145 13 469 Payments (119 ) (200 ) (742 ) Adjustments -- (58 ) (67 ) Balance at end of the period $ 65 $ 134 $ 39 |
Note 14 - Restructuring Costs (
Note 14 - Restructuring Costs (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Three Total Expected Total Months Ended to be Recognized Fiscal 2017 (In thousands) September 30, in Remainder of Restructuring 2016 Fiscal 2017 Expenses Severance and other termination benefits $ 165 $ 471 $ 636 Lease obligation 213 -- 213 Impairment of fixed assets and accelerated depreciation 273 90 363 Other 5 125 130 Total $ 656 $ 686 $ 1,342 |
Restructuring and Related Costs, Summary of Costs Incurred by Line Item in the Statement of Operations [Table Text Block] | Three Months Ended (In thousands) September 30 2016 Cost of Goods Sold $ 503 Operating Expenses 153 Total $ 656 |
Restructuring Costs and Related Costs Incurred by Segment [Table Text Block] | Three Total Expected Total Months Ended to be Recognized Fiscal 2017 (In thousands) September 30, In Remainder of Restructuring 2016 Fiscal 2017 Expenses Lighting Segment $ 291 $ 686 $ 977 Graphics Segment -- -- -- Technology Segment 254 -- 254 Corporate and Eliminations 111 -- 111 Total $ 656 $ 686 $ 1,342 |
Schedule of Liability Balances Related to Restructuring Costs [Table Text Block] | (In thousands) Balance as of June 30, 2016 Restructuring Expense Payments Adjustments Balance as of September 30, 2016 Severance and termination benefits $ -- $ 165 $ (67 ) $ -- $ 98 Lease obligation -- 213 -- -- 213 Other -- 5 -- -- 5 Total $ -- $ 383 $ (67 ) $ -- $ 316 |
Note 15 - Income Taxes (Tables)
Note 15 - Income Taxes (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Three Months Ended September 30 2016 2015 Reconciliation to effective tax rate: Provision for income taxes at the anticipated annual tax rate 32.0 % 35.6 % Uncertain tax positions (1.3 ) (0.3 ) Deferred tax asset adjustment (6.7 ) -- Other (0.8 ) (0.4 ) Effective tax rate 23.2 % 34.9 % |
Note 2 - Summary of Significa33
Note 2 - Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended | |
Sep. 30, 2016USD ($)shares | Sep. 30, 2015USD ($)shares | |
Minimum [Member] | ||
Media Content Service Period | 30 days | |
Finite-Lived Intangible Asset, Useful Life | 7 years | |
Standard Warranty Term | 1 year | |
Maximum [Member] | Leasehold Improvements [Member] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Maximum [Member] | Product Warranty Exceptions [Member] | ||
Standard Warranty Term | 10 years | |
Maximum [Member] | ||
Media Content Service Period | 1 year | |
Finite-Lived Intangible Asset, Useful Life | 20 years | |
Standard Warranty Term | 5 years | |
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | $ 0 | |
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Liability | $ 0 | |
Number of Revenue Sources | 5 | |
Cash, FDIC Insured Amount | $ 250,000 | |
Cash, Uninsured Amount | 34,816,000 | $ 37,883,000 |
Depreciation | 1,728,000 | 1,450,000 |
Research and Development Expense | $ 1,401,000 | $ 1,311,000 |
Incremental Common Shares Attributable to Dilutive Effect of Contingently Issuable Shares | shares | 914,000 | 693,000 |
Note 2 - Summary of Significa34
Note 2 - Summary of Significant Accounting Policies - Net Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Accounts receivable | $ 46,527 | $ 47,201 |
Less: Allowance for doubtful accounts | (293) | (226) |
Accounts receivable, net | $ 46,234 | $ 46,975 |
Note 2 - Summary of Significa35
Note 2 - Summary of Significant Accounting Policies - Estimated Useful Lives of Long-lived Assets (Details) | 3 Months Ended |
Sep. 30, 2016 | |
Building [Member] | Minimum [Member] | |
Property, Plant, and Equipment | 28 years |
Building [Member] | Maximum [Member] | |
Property, Plant, and Equipment | 40 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant, and Equipment | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant, and Equipment | 10 years |
Software and Software Development Costs [Member] | Minimum [Member] | |
Property, Plant, and Equipment | 3 years |
Software and Software Development Costs [Member] | Maximum [Member] | |
Property, Plant, and Equipment | 8 years |
Note 2 - Summary of Significa36
Note 2 - Summary of Significant Accounting Policies - Warranty Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | |
Balance at beginning of the period | $ 5,069 | $ 3,408 | $ 3,408 |
Additions charged to expense | 903 | 877 | 5,069 |
Deductions for repairs and Replacements | (624) | (615) | (3,408) |
Balance at end of the period | $ 5,348 | $ 3,670 | $ 5,069 |
Note 3 - Segment Reporting In37
Note 3 - Segment Reporting Information (Details Textual) - USD ($) | 3 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk, Percentage | 0.00% | 0.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk, Percentage | 0.00% | 0.00% | |
Reclassification of Operating Income from the Technology Segment to the Graphics Segment [Member] | First Quarter of Fiscal 2016 [Member] | |||
Prior Period Reclassification Adjustment | $ 73,000 | ||
Customer Relationships [Member] | Graphics Segment [Member] | |||
Intangible Assets, Net (Excluding Goodwill) | $ 505,000 | ||
Number of Operating Segments | 3 | ||
Intangible Assets, Net (Excluding Goodwill) | $ 5,479,000 | $ 5,586,000 | |
Intersegment Revenue Markup Percentage | 10.00% |
Note 3 - Segment Reporting In38
Note 3 - Segment Reporting Information -Summarized Financial Information by Reportable Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Lighting Segment [Member] | ||
Net Sales: | ||
Net Sales | $ 60,370 | $ 59,075 |
Operating Income (Loss): | ||
Operating Income (Loss) | 2,791 | 5,682 |
Capital Expenditures: | ||
Capital Expenditures | 1,084 | 689 |
Depreciation and Amortization: | ||
Depreciation and Amortization | 847 | 705 |
Graphics Segment [Member] | ||
Net Sales: | ||
Net Sales | 18,894 | 22,330 |
Operating Income (Loss): | ||
Operating Income (Loss) | 1,017 | 2,234 |
Capital Expenditures: | ||
Capital Expenditures | 366 | 588 |
Depreciation and Amortization: | ||
Depreciation and Amortization | 360 | 234 |
Technology Segment [Member] | ||
Net Sales: | ||
Net Sales | 4,895 | 4,520 |
Operating Income (Loss): | ||
Operating Income (Loss) | 728 | 1,267 |
Capital Expenditures: | ||
Capital Expenditures | 12 | 33 |
Depreciation and Amortization: | ||
Depreciation and Amortization | 345 | 336 |
Corporate and Eliminations [Member] | ||
Operating Income (Loss): | ||
Operating Income (Loss) | (3,470) | (3,420) |
Capital Expenditures: | ||
Capital Expenditures | 498 | 52 |
Depreciation and Amortization: | ||
Depreciation and Amortization | 283 | 301 |
Net Sales | 84,159 | 85,925 |
Operating Income (Loss) | 1,066 | 5,763 |
Capital Expenditures | 1,960 | 1,362 |
Depreciation and Amortization | $ 1,835 | $ 1,576 |
Note 3 - Segment Reporting In39
Note 3 - Segment Reporting Information - Identifiable Assets by Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Lighting Segment [Member] | ||
Identifiable Assets: | ||
Identifiable Assets | $ 92,293 | $ 95,168 |
Graphics Segment [Member] | ||
Identifiable Assets: | ||
Identifiable Assets | 35,612 | 33,490 |
Technology Segment [Member] | ||
Identifiable Assets: | ||
Identifiable Assets | 27,910 | 28,348 |
Corporate and Eliminations [Member] | ||
Identifiable Assets: | ||
Identifiable Assets | 37,010 | 38,554 |
Identifiable Assets | $ 192,825 | $ 195,560 |
Note 3 - Segment Reporting In40
Note 3 - Segment Reporting Information - Inter-segment Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Intersegment Eliminations [Member] | Lighting Segment [Member] | ||
Net Sales | $ 774 | $ 614 |
Intersegment Eliminations [Member] | Graphics Segment [Member] | ||
Net Sales | 132 | 444 |
Intersegment Eliminations [Member] | Technology Segment [Member] | ||
Net Sales | 8,785 | 9,384 |
Lighting Segment [Member] | ||
Net Sales | 60,370 | 59,075 |
Graphics Segment [Member] | ||
Net Sales | 18,894 | 22,330 |
Technology Segment [Member] | ||
Net Sales | 4,895 | 4,520 |
Net Sales | $ 84,159 | $ 85,925 |
Note 4 - Earnings Per Common 41
Note 4 - Earnings Per Common Share (Details Textual) - shares | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,654,450 | 1,683,500 |
Note 4 - Earnings Per Common 42
Note 4 - Earnings Per Common Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | ||
Net of Treasury Shares [Member] | |||
BASIC EARNINGS PER SHARE | |||
Weighted average shares outstanding, net of treasury shares (in shares) | [1] | 24,998 | 24,501 |
Restricted Stock Units (RSUs) [Member] | |||
BASIC EARNINGS PER SHARE | |||
Weighted average vested restricted stock units outstanding (in shares) | 37 | 27 | |
Deferred Compensation Plan [Member] | |||
BASIC EARNINGS PER SHARE | |||
Weighted average vested restricted stock units outstanding (in shares) | 240 | 236 | |
Net income | $ 829 | $ 3,750 | |
Weighted average shares outstanding (in shares) | 25,275 | 24,764 | |
Basic earnings per share (in dollars per share) | $ 0.03 | $ 0.15 | |
DILUTED EARNINGS PER SHARE | |||
Net income | $ 829 | $ 3,750 | |
Weighted average shares outstanding (in shares) | 25,275 | 24,764 | |
Impact of common shares to be issued under stock option plans, and contingently issuable shares, if any (in shares) | [2] | 637 | 430 |
Weighted average shares outstanding (in shares) | [3] | 25,912 | 25,194 |
Basic earnings per share (in dollars per share) | $ 0.03 | $ 0.15 | |
[1] | Includes shares accounted for like treasury stock. | ||
[2] | Calculated using the "Treasury Stock" method as if dilutive securities were exercised and the funds were used to purchase common shares at the average market price during the period. | ||
[3] | Options to purchase 1,654,450 common shares and 1,683,500 common shares at September 30, 2016 and 2015, respectively, were not included in the computation of the three month period for diluted earnings per share, respectively, because the exercise price was greater than the average fair market value of the common shares. |
Note 5 - Inventories - Inventor
Note 5 - Inventories - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Inventories: | ||
Raw materials | $ 28,533 | $ 28,979 |
Work-in-process | 4,242 | 4,418 |
Finished goods | 10,825 | 10,744 |
Total Inventories | $ 43,600 | $ 44,141 |
Note 6 - Accrued Expenses - Acc
Note 6 - Accrued Expenses - Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2015 |
Accrued Expenses: | ||||
Compensation and benefits | $ 6,554 | $ 11,983 | ||
Customer prepayments | 1,321 | 1,053 | ||
Accrued sales commissions | 1,924 | 2,792 | ||
Accrued warranty | 5,348 | 5,069 | $ 3,670 | $ 3,408 |
Other accrued expenses | 5,359 | 4,444 | ||
Total Accrued Expenses | $ 20,506 | $ 25,341 |
Note 7 - Goodwill and Other I45
Note 7 - Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Lighting Segment [Member] | ||
Goodwill | $ 34,913 | $ 34,913 |
Accumulated impairment losses | (34,778) | (34,778) |
Goodwill, net | 135 | 135 |
Graphics Segment [Member] | ||
Goodwill | 28,690 | 28,690 |
Accumulated impairment losses | (27,525) | (27,525) |
Goodwill, net | 1,165 | 1,165 |
Technology Segment [Member] | ||
Goodwill | 11,621 | 11,621 |
Accumulated impairment losses | (2,413) | (2,413) |
Goodwill, net | 9,208 | 9,208 |
All Other Category [Member] | ||
Goodwill | ||
Accumulated impairment losses | ||
Goodwill, net | ||
Goodwill | 75,224 | 75,224 |
Accumulated impairment losses | (64,716) | (64,716) |
Goodwill, net | $ 10,508 | $ 10,508 |
Note 7 - Goodwill and Other I46
Note 7 - Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) | Sep. 30, 2016 | Jun. 30, 2016 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets, Gross | $ 9,316,000 | $ 9,316,000 |
Accumulated Amortization | 7,654,000 | 7,581,000 |
Net Amount | 1,662,000 | 1,735,000 |
Patents [Member] | ||
Finite Lived Intangible Assets, Gross | 338,000 | 338,000 |
Accumulated Amortization | 163,000 | 154,000 |
Net Amount | 175,000 | 184,000 |
Technology-Based Intangible Assets [Member] | ||
Finite Lived Intangible Assets, Gross | 11,228,000 | 11,228,000 |
Accumulated Amortization | 11,008,000 | 10,989,000 |
Net Amount | 220,000 | 239,000 |
Trade Names [Member] | ||
Finite Lived Intangible Assets, Gross | 460,000 | 460,000 |
Accumulated Amortization | 460,000 | 460,000 |
Noncompete Agreements [Member] | ||
Finite Lived Intangible Assets, Gross | 710,000 | 710,000 |
Accumulated Amortization | 710,000 | 704,000 |
Net Amount | 6,000 | |
Trademarks and Trade Names [Member] | ||
Indefinite Lived Intangible Assets | 3,422,000 | 3,422,000 |
Total Indefinite-lived Intangible Assets | 3,422,000 | 3,422,000 |
Finite Lived Intangible Assets, Gross | 22,052,000 | 22,052,000 |
Accumulated Amortization | 19,995,000 | 19,888,000 |
Net Amount | 2,057,000 | 2,164,000 |
Indefinite Lived Intangible Assets | 3,422,000 | 3,422,000 |
Total Indefinite-lived Intangible Assets | 3,422,000 | 3,422,000 |
Total Other Intangible Assets | 25,474,000 | 25,474,000 |
Intangible Assets, Net (Excluding Goodwill) | $ 5,479,000 | $ 5,586,000 |
Note 7 - Goodwill and Other I47
Note 7 - Goodwill and Other Intangible Assets - Amortization Expense of Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Three Months Ended | $ 107 | $ 126 |
Note 7 - Goodwill and Intangibl
Note 7 - Goodwill and Intangible Assets - Future Amortization Expense (Details) $ in Thousands | Sep. 30, 2016USD ($) |
2,017 | $ 419 |
2,018 | 401 |
2,019 | 401 |
2,020 | 327 |
2,021 | 323 |
After 2,021 | $ 293 |
Note 8 - Revolving Lines of C49
Note 8 - Revolving Lines of Credit (Details Textual) - USD ($) $ in Millions | Mar. 31, 2016 | Sep. 30, 2016 |
UNITED STATES | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30 | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.125% | |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.90% | |
Letters of Credit Outstanding, Amount | $ 0.4 |
Note 9 - Cash Dividends (Detail
Note 9 - Cash Dividends (Details Textual) - USD ($) | 3 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Oct. 31, 2016 | Oct. 13, 2016 | |
Subsequent Event [Member] | ||||
Quarterly Indicated Per Share Dividend Rate | $ 0.05 | |||
Annual Indicated per Share Dividend Rate | $ 0.20 | |||
Payments of Ordinary Dividends, Common Stock | $ 1,256,000 | $ 735,000 | ||
Dividends Accrued | $ 13,898 | $ 2,160 |
Note 10 - Equity Compensation51
Note 10 - Equity Compensation (Details Textual) | 3 Months Ended | 12 Months Ended | 42 Months Ended | ||
Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2016USD ($)shares | Jun. 30, 2015shares | Jun. 30, 2016USD ($)shares | |
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 2 years 273 days | ||||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 9 years 273 days | 9 years 273 days | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | $ 10.08 | $ 8.84 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 3.39 | $ 3.28 | |||
Share Based Compensation Valuation Assumptions Expected Forfeiture Rate | 2.00% | ||||
Treasury Stock Acquired, Repurchase Authorization, Shares Expected | shares | 45,000 | ||||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 3 years 273 days | ||||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 9 years 335 days | 9 years 335 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 10 years | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | $ 11.06 | $ 9.99 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 3.83 | 3.88 | |||
Share Based Compensation Valuation Assumptions Expected Forfeiture Rate | 3.30% | ||||
Treasury Stock Acquired, Repurchase Authorization, Shares Expected | shares | 50,000 | ||||
Non-Employee Directors [Member] | Each Ninety Days [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||
Employees [Member] | Annually [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||
Annually [Member] | Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.30% | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 691,432 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 330 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares | 118,575 | 62,500 | 62,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 11.06 | $ 9.39 | |||
Share Based Compensation Valuation Assumptions Expected Forfeiture Rate | 3.40% | 3.30% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares | 113,868 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 71,700 | 72,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||
Dividends | $ 13,898 | $ 2,160 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 3 years 273 days | ||||
Allocated Share-based Compensation Expense | 302,301 | $ 286,257 | |||
Sharebased Compensation Arrangement By Sharebased Payment Award Equity Other Than Options Expected To Vest Outstanding Number | shares | 69,081 | ||||
Employee Salary Deferrals or Company Contributions [Member] | |||||
Treasury Stock, Value, Acquired, Cost Method | $ 343,700 | $ 228,200 | |||
Treasury Stock, Shares, Acquired | shares | 34,587 | 24,914 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 36 days | 4 years 36 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 7 years 109 days | 7 years | 6 years 219 days | 6 years 36 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares | 911,875 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares | 3,647,927 | 3,417,537 | 2,976,490 | 2,677,436 | 2,976,490 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 1,586,188 | 1,537,151 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 4,013,412 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 150 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 832,500 | 942,800 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | $ 11.06 | $ 9.39 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 3.83 | $ 3.65 | |||
Share Based Compensation Valuation Assumptions Expected Forfeiture Rate | 3.40% | ||||
Stock or Unit Option Plan Expense | $ 1,438,443 | $ 1,488,753 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares | 3,583,341 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ / shares | $ 9.17 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 8,698,736 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 7 years 109 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 50,160 | 429,294 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Aggregate Grant Date Fair Value | 1,334,248 | 336,634 | |||
Proceeds from Stock Options Exercised | 173,185 | 1,328,907 | |||
Increase (Decrease) in Income Taxes Payable | 78,040 | 150,253 | |||
Increase (Decrease) In Common Stock Related To Stock Option Exercise | 165,856 | 6,640 | |||
Reduction of Income Tax Expense Related to Stock Option Exercises | 8,880 | 20,464 | |||
Reduction of Deferred Tax Asset Related to Stock Option Exercises | $ 183,665 | $ 123,149 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | shares | 9,470 | 5,260 | |||
Deferred Compensation Plan, Number of Participants | 30 | ||||
Stock Issued During Period, Value, Share-based Compensation, Gross | $ 103,100 | $ 49,300 | |||
Treasury Stock, Shares | shares | 258,699 | 228,103 | 228,103 | ||
Treasury Stock, Value | $ 2,469,034 | $ 2,167,717 | $ 2,167,717 |
Note 10 - Equity Compensation -
Note 10 - Equity Compensation - Weighted Average Assumptions Used to Develop the Fair Value of Stock Options (Details) | 3 Months Ended |
Sep. 30, 2016 | |
Dividend yield | 1.80% |
Expected volatility | 42.90% |
Risk-free interest rate | 1.00% |
Expected life (in years) | 6 years |
Note 10 - Equity Compensation53
Note 10 - Equity Compensation - Stock Options (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Outstanding at (in shares) | 2,976,490 | 2,677,436 | 2,677,436 | |
Outstanding at (in dollars per share) | $ 8.97 | $ 8.85 | $ 8.85 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 7 years 109 days | 7 years | 6 years 219 days | 6 years 36 days |
Outstanding at | $ 8,783,980 | $ 2,759,444 | $ 8,338,974 | $ 4,914,601 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 832,500 | 942,800 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 11.06 | $ 9.39 | ||
Forfeitures (in shares) | (140,250) | (20,800) | ||
Forfeitures (in dollars per share) | $ 15.95 | $ 15.36 | ||
Exercised (in shares) | (20,813) | (181,899) | ||
Exercised (in dollars per share) | $ 8.32 | $ 7.31 | ||
Outstanding at (in shares) | 3,647,927 | 3,417,537 | 2,976,490 | 2,677,436 |
Outstanding at (in dollars per share) | $ 9.18 | $ 9.04 | $ 8.97 | $ 8.85 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,586,188 | 1,537,151 | ||
Exercisable at (in dollars per share) | $ 8.91 | $ 10.15 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 36 days | 4 years 36 days | ||
Exercisable at | $ 4.982876 | $ 1,270,934 |
Note 10 - Equity Compensation54
Note 10 - Equity Compensation - Summary of Unvested Stock Options (Details) - $ / shares | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Unvested at June 30, 2016 (in shares) | 1,663,505 | |
Unvested at June 30, 2016 (in dollars per share) | $ 3.39 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 832,500 | 942,800 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 3.83 | $ 3.65 |
Vested (in shares) | (408,766) | |
Vested (in dollars per share) | $ 3.26 | |
Forfeited (in shares) | (25,500) | |
Forfeited (in dollars per share) | $ 3.50 | |
Unvested at September 30, 2016 (in shares) | 2,061,739 | |
Unvested at September 30, 2016 (in dollars per share) | $ 3.59 |
Note 10 - Equity Compensation55
Note 10 - Equity Compensation - Summary of Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Unvested at June 30, 2016 (in shares) | 62,500 | |
Unvested at June 30, 2016 (in dollars per share) | $ 9.39 | |
Awarded (in shares) | 71,700 | 72,000 |
Awarded (in dollars per share) | $ 11.06 | |
Shares Issued (in shares) | (15,625) | |
Shares Issued (in dollars per share) | $ 9.39 | |
Unvested at September 30, 2016 (in shares) | 118,575 | |
Unvested at September 30, 2016 (in dollars per share) | $ 10.40 |
Note 11 - Supplemental Cash F56
Note 11 - Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Interest | $ 13 | $ 13 |
Income taxes | $ 1,022 | $ 74 |
Note 12 - Commitments and Con57
Note 12 - Commitments and Contingencies (Details Textual) - USD ($) | Mar. 19, 2012 | Sep. 30, 2016 | Jun. 30, 2013 |
LSI Virticus [Member] | |||
Business Combination, Contingent Consideration, Liability | $ 877,000 | $ 0 | |
Liability Payment Period | 5 years | ||
Loss Contingency, Estimate of Possible Loss | $ 236,000 | ||
Irrevocable Letter of Credit [Member] | |||
Letters of Credit Outstanding, Amount | 400,000 | ||
Letters of Credit Outstanding, Amount | $ 400,000 |
Note 13 - Severance Costs (Deta
Note 13 - Severance Costs (Details Textual) - USD ($) | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Severance Costs | $ 145,000 | $ 13,000 |
Note 13 - Severance Costs - Acc
Note 13 - Severance Costs - Accrued Severance Liability Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | |
Balance at | $ 39 | $ 379 | $ 379 |
Accrual of expense | 145 | 13 | 469 |
Payments | (119) | (200) | (742) |
Adjustments | (58) | (67) | |
Balance at | $ 65 | $ 134 | $ 39 |
Note 14 - Restructuring Costs60
Note 14 - Restructuring Costs (Details Textual) - USD ($) | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Closure of Kansas City Facility [Member] | ||
Restructuring and Related Cost, Expected Cost | $ 1,000,000 | |
Inventory Write-down | 400,000 | |
Restructuring, Estimated Annual Net Operating Profit Improvement and Costs Savings, Amount | 1,400,000 | |
Closure of Kansas City Facility and Consolidation of Beaverton, Oregon Facility Into Other LSI Facilities [Member] | Machinery and Equipment at the Kansas City and Beaverton Facilities [Member] | ||
Impairment of Long-Lived Assets Held-for-use | 273,000 | |
Consolidation of Beaverton, Oregon Facility into Other LSI Facilities [Member] | ||
Restructuring, Estimated Annual Net Operating Profit Improvement and Costs Savings, Amount | 450,000 | |
Restructuring Charges | 365,000 | |
Machinery and Equipment at the Kansas City and Beaverton Facilities [Member] | Lighting Segment [Member] | ||
Impairment of Long-Lived Assets Held-for-use | 242,000 | |
Machinery and Equipment at the Kansas City and Beaverton Facilities [Member] | Technology Segment [Member] | ||
Impairment of Long-Lived Assets Held-for-use | 31,000 | |
Restructuring and Related Cost, Expected Cost | 1,342,000 | |
Inventory Write-down | 573,000 | $ 367,000 |
Restructuring Charges | 383,000 | |
Impairment of Long-Lived Assets Held-for-use | $ 273,000 |
Note 14 - Restructuring Costs -
Note 14 - Restructuring Costs - Summary of Restructuring Costs for the Period (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Severance and Other Termination Benefits [Member] | |
Restructuring and related costs, costs incurred to date | $ 165 |
Total expected to be recognized in remainder of fiscal 2017 | 471 |
Total fiscal 2017 restructuring expenses | 636 |
Lease Obligation Restructuring [Member] | |
Restructuring and related costs, costs incurred to date | 213 |
Total expected to be recognized in remainder of fiscal 2017 | |
Total fiscal 2017 restructuring expenses | 213 |
Restructuring Impairment of Fixed Assets and Accelerated Depreciation [Member] | |
Restructuring and related costs, costs incurred to date | 273 |
Total expected to be recognized in remainder of fiscal 2017 | 90 |
Total fiscal 2017 restructuring expenses | 363 |
Other Restructuring [Member] | |
Restructuring and related costs, costs incurred to date | 5 |
Total expected to be recognized in remainder of fiscal 2017 | 125 |
Total fiscal 2017 restructuring expenses | 130 |
Restructuring and related costs, costs incurred to date | 656 |
Total expected to be recognized in remainder of fiscal 2017 | 686 |
Total fiscal 2017 restructuring expenses | $ 1,342 |
Note 14 - Restructuring Costs62
Note 14 - Restructuring Costs - Cost Incurred by Line Items on the Statement of Operations (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Cost of Goods Sold [Member] | |
Restructuring and related costs, incurred cost | $ 503 |
Operating Expense [Member] | |
Restructuring and related costs, incurred cost | 153 |
Restructuring and related costs, incurred cost | $ 656 |
Note 14 - Restrucuring Costs -
Note 14 - Restrucuring Costs - Summary of Restructuring Costs by Segment (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Lighting Segment [Member] | Operating Segments [Member] | |
Restructuring and related costs, costs incurred to date | $ 291 |
Total expected to be recognized in remainder of fiscal 2017 | 686 |
Total fiscal 2017 restructuring expenses | 977 |
Graphics Segment [Member] | Operating Segments [Member] | |
Restructuring and related costs, costs incurred to date | |
Total expected to be recognized in remainder of fiscal 2017 | |
Total fiscal 2017 restructuring expenses | |
Technology Segment [Member] | Operating Segments [Member] | |
Restructuring and related costs, costs incurred to date | 254 |
Total expected to be recognized in remainder of fiscal 2017 | |
Total fiscal 2017 restructuring expenses | 254 |
Corporate, Non-Segment [Member] | |
Restructuring and related costs, costs incurred to date | 111 |
Total expected to be recognized in remainder of fiscal 2017 | |
Total fiscal 2017 restructuring expenses | 111 |
Restructuring and related costs, costs incurred to date | 656 |
Total expected to be recognized in remainder of fiscal 2017 | 686 |
Total fiscal 2017 restructuring expenses | $ 1,342 |
Note 14 - Restructuring Costs64
Note 14 - Restructuring Costs - Liability Balances Related to Restructuring Costs (Details) | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Severance and Other Termination Benefits [Member] | |
Balance | $ 0 |
Restructuring Charges | 165,000 |
Payments | (67,000) |
Balance | 98,000 |
Lease Obligation Restructuring [Member] | |
Balance | 0 |
Restructuring Charges | 213,000 |
Payments | 0 |
Balance | 213 |
Other Restructuring [Member] | |
Balance | 0 |
Restructuring Charges | 5,000 |
Payments | 0 |
Balance | 5 |
Balance | 0 |
Restructuring Charges | 383,000 |
Payments | (67,000) |
Balance | $ 316 |
Note 15 - Income Taxes - Reconc
Note 15 - Income Taxes - Reconciliation of Income Tax Rate (Details) | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Reconciliation to effective tax rate: | ||
Provision for income taxes at the anticipated annual tax rate | 32.00% | 35.60% |
Uncertain tax positions | (1.30%) | (0.30%) |
Deferred tax asset adjustment | (6.70%) | |
Other | (0.80%) | (0.40%) |
Effective tax rate | 23.20% | 34.90% |