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Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2017
Income Tax Disclosure [Abstract] |
Schedule of Components of the Provision (Benefit) for Income Taxes |
| Years Ended September 30,
| 2017 |  | 2016 |  | 2015
| (dollars in thousands)
Domestic | $ | 1,900 |  |  | $ | 2,100 |  |  | $ | 94 |
Foreign | 7,930 |  |  | (7,550 | ) |  | (4,901 | )
| $ | 9,830 |  |  | $ | (5,450 | ) |  | $ | (4,807 | )
The components of the provision (benefit) for income taxes are as follows:
| Years Ended September 30,
| 2017 |  | 2016 |  | 2015
| (dollars in thousands)
Current: |  |  |  |  |
Domestic federal | $ | 54 |  |  | $ | 530 |  |  | $ | (320 | )
Foreign | 1,330 |  |  | 500 |  |  | 500 |
Foreign withholding taxes | 240 |  |  | 280 |  |  | 1,240 |
Domestic state | 120 |  |  | 110 |  |  | — |
Total current | 1,744 |  |  | 1,420 |  |  | 1,420 |
Deferred: |  |  |  |  |
Domestic federal | — |  |  | 1,680 |  |  | 720 |
Foreign | — |  |  | — |  |  | (210 | )
Domestic state | — |  |  | — |  |  | (20 | )
Total deferred | — |  |  | 1,680 |  |  | 490 |
Total provision | $ | 1,744 |  |  | $ | 3,100 |  |  | $ | 1,910 |
Reconciliation of Actual Income Taxes to Expected Federal Corporate Income Taxes | A reconciliation of actual income taxes to income taxes at the expected United States federal corporate income tax rate of thirty-four percent is as follows:
| Years Ended September 30,
| 2017 |  | 2016 |  | 2015
| (dollars in thousands)
Tax expense (benefit) at the U.S. rate (34%) | $ | 3,340 |  |  | $ | (1,890 | ) |  | $ | (1,630 | )
Effect of permanent book-tax differences | 340 |  |  | 1,120 |  |  | (1,570 | )
State tax provision | 100 |  |  | 110 |  |  | (40 | )
Valuation allowance for net deferred tax assets | (1,610 | ) |  | 2,690 |  |  | 2,490 |
Uncertain tax items | 350 |  |  | 350 |  |  | 330 |
Foreign tax rate differential | (776 | ) |  | 1,050 |  |  | 1,890 |
Other items | — |  |  | (330 | ) |  | 440 |
| $ | 1,744 |  |  | $ | 3,100 |  |  | $ | 1,910 |
Schedule of Deferred Tax Assets and Deferred Tax Liability | The tax effects of temporary book-tax differences that give rise to significant portions of the deferred tax assets and deferred tax liability are as follows:
| Years Ended September 30,
| 2017 |  | 2016
| (dollars in thousands)
Deferred tax assets - current: |  |  |
Capitalized inventory costs | $ | 210 |  |  | $ | 270 |
Inventory write-downs | 1,945 |  |  | 2,460 |
Accrued warranty | 260 |  |  | 160 |
Deferred profits | 1,190 |  |  | 1,180 |
Accruals and reserves not currently deductible | 1,945 |  |  | 1,720 |
Deferred tax assets - current | $ | 5,550 |  |  | $ | 5,790 |
Valuation allowance | (5,550 | ) |  | (5,790 | )
Deferred tax assets - current, net of valuation allowance | $ | — |  |  | $ | — |
Deferred tax assets (liabilities) - non-current: |  |  |
Stock option expense | $ | 1,080 |  |  | $ | 890 |
Book vs. tax basis of acquired assets | (1,290 | ) |  | (1,340 | )
Federal net operating loss carryforwards | 4,820 |  |  | 3,370 |
Foreign and state net operating losses | 14,800 |  |  | 13,200 |
Book vs. tax depreciation and amortization | (2,250 | ) |  | (2,200 | )
Foreign tax credits | 420 |  |  | 4,230 |
Other deferred tax assets | — |  |  | 570 |
Total deferred tax assets - non-current | 17,580 |  |  | 18,720 |
Valuation allowance | (17,380 | ) |  | (18,520 | )
Deferred tax assets (liabilities) - non-current, net of valuation allowance | $ | 200 |  |  | $ | 200 |
Changes in Deferred Tax Valuation Allowance | Changes in the deferred tax valuation allowance are as follows:
| Years Ended September 30,
| 2017 |  | 2016
| (dollars in thousands)
Balance at the beginning of the year | $ | 24,310 |  |  | $ | 23,810 |
(Reductions) additions to valuation allowance | (1,380 | ) |  | 500 |
Balance at the end of the year | $ | 22,930 |  |  | $ | 24,310 |
Schedule of Unrecognized Tax Benefit Liabilities | A reconciliation of the beginning and ending amount of our unrecognized tax benefits is summarized as follows:
| Years Ended September 30,
| 2017 |  | 2016 |  | 2015
| (dollars in thousands)
Balance at beginning of the year | $ | 3,860 |  |  | $ | 3,510 |  |  | $ | 3,180 |
Additions related to tax positions taken in prior years | 350 |  |  | 350 |  |  | 330 |
Reductions due to lapse of statute of limitations | — |  |  | — |  |  | — |
Balance at the end of the year | $ | 4,210 |  |  | $ | 3,860 |  |  | $ | 3,510 |

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