Document And Entity Information
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Document And Entity Information (USD $)
 12 Months Ended
Sep. 30, 2011
Dec. 01, 2011
Document And Entity Information [Abstract]    
Document Type 10-K  
Amendment Flag false  
Document Period End Date Sep. 30, 2011  
Document Fiscal Year Focus 2011  
Document Fiscal Period Focus FY  
Entity Filer Category Smaller Reporting Company  
Entity Registrant Name MICROWAVE FILTER CO INC /NY/  
Entity Central Index Key 0000716688  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Current Fiscal Year End Date --09-30  
Entity Well-known Seasoned Issuer No  
Entity Common Stock, Shares Outstanding   2,586,227
Entity Public Float   $ 2,474,700

Consolidated Balance Sheets
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Consolidated Balance Sheets (USD $)
Sep. 30, 2011
Sep. 30, 2010
Assets    
Cash and cash equivalents $ 1,258,885 $ 1,466,719
Accounts receivable-trade, net of allowance for doubtful accounts of $26,000 and $18,000 352,054 423,666
Federal and state income tax recoverable 24,828 0
Inventories 567,261 536,004
Prepaid expenses and other current assets 94,114 92,417
Total current assets 2,297,142 2,518,806
Property, plant and equipment, net 617,818 444,418
Total Assets 2,914,960 2,963,224
Liabilities and Stockholders' Equity    
Accounts payable 195,535 161,676
Customer deposits 51,886 39,618
Accrued federal and state income taxes 0 2,544
Accrued payroll and related expenses 57,514 52,932
Accrued compensated absences 250,443 245,055
Other current liabilities 83,654 35,831
Total current liabilities 639,032 537,656
Total liabilities 639,032 537,656
Stockholders' equity:    
Common stock, $.10 par value. Authorized 5,000,000 shares Issued 4,324,140 in 2011 and 2010, Outstanding 2,586,227 in 2011 and 2,591,486 in 2010 432,414 432,414
Additional paid-in capital 3,248,706 3,248,706
Retained earnings 285,485 430,504
Common stock in treasury, at cost, 1,737,913 shares in 2011 and 1,732,654 shares in 2010 (1,690,677) (1,686,056)
Total stockholders' equity 2,275,928 2,425,568
Total Liabilities and Stockholders' Equity $ 2,914,960 $ 2,963,224

Consolidated Balance Sheets (Parenthetical)
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Consolidated Balance Sheets (Parenthetical) (USD $)
Sep. 30, 2011
Sep. 30, 2010
Consolidated Balance Sheets [Abstract]    
Accounts receivable, allowance for doubtful accounts $ 26,000 $ 18,000
Common stock, par value $ 0.10 $ 0.10
Common stock, shares authorized 5,000,000 5,000,000
Common stock, shares, issued 4,324,140 4,324,140
Common stock, shares, outstanding 2,586,227 2,591,486
Treasury stock, shares 1,737,913 1,732,654

Consolidated Statements Of Operations
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Consolidated Statements Of Operations (USD $)
 12 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Consolidated Statements Of Operations [Abstract]    
Net sales $ 5,043,934 $ 4,691,522
Cost of goods sold 3,186,508 2,996,413
Gross profit 1,857,426 1,695,109
Selling, general and administrative expenses 1,650,357 1,555,408
Income from operations 207,069 139,701
Non-operating Income    
Interest income 6,664 5,158
Miscellaneous 1,810 1,692
Income before income taxes 215,543 146,551
Provision (benefit) for income taxes (27,372) 260
NET INCOME $ 242,915 $ 146,291
Per share data:    
Basic and Diluted Earnings Per Common Share $ 0.09 $ 0.06
Shares used in computing net earnings per common share:    
Basic and diluted 2,587,807 2,592,723

Consolidated Statements Of Stockholders' Equity
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Consolidated Statements Of Stockholders' Equity (USD $)
Common Stock [Member]
Additional Paid-In Capital [Member]
Treasury Stock [Member]
Retained Earnings [Member]
Total
Balance at Sep. 30, 2009 $ 432,414 $ 3,248,706 $ (1,684,649) $ 284,213 $ 2,280,684
Balance, shares at Sep. 30, 2009 4,324,140   1,730,887    
Net income       146,291 146,291
Purchase of treasury stock, value     (1,407)   (1,407)
Purchase of treasury stock, shares     1,767    
Balance at Sep. 30, 2010 432,414 3,248,706 (1,686,056) 430,504 2,425,568
Balance, shares at Sep. 30, 2010 4,324,140   1,732,654    
Net income       242,915 242,915
Purchase of treasury stock, value     (4,621)   (4,621)
Purchase of treasury stock, shares     5,259    
Cash dividend ($.15 per share)       (387,934) (387,934)
Balance at Sep. 30, 2011 $ 432,414 $ 3,248,706 $ (1,690,677) $ 285,485 $ 2,275,928
Balance, shares at Sep. 30, 2011 4,324,140   1,737,913    

Consolidated Statements Of Stockholders' Equity (Parenthetical)
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Consolidated Statements Of Stockholders' Equity (Parenthetical) (USD $)
 12 Months Ended
Sep. 30, 2011
Consolidated Statements Of Stockholders' Equity [Abstract]  
Cash dividend, per share $ 0.15

Consolidated Statements Of Cash Flows
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Consolidated Statements Of Cash Flows (USD $)
 12 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Cash flows from operating activities:    
Net income $ 242,915 $ 146,291
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation 107,902 98,208
Provision for doubtful accounts 8,390 0
Inventory obsolescence provision (10,892) 2,274
Changes in assets and liabilities:    
Accounts receivable-trade 63,222 (175,961)
Federal and state income tax recoverable (27,372) 844
Inventories (20,365) 66,314
Other assets (1,697) 14,562
Accounts payable and customer deposits 46,127 23,783
Accrued payroll, compensated absences and related expenses 9,970 (41,091)
Other current liabilities 47,823 1,459
Net cash provided by operating activities 466,023 136,683
Cash flows from investing activities:    
Capital expenditures (281,302) (144,875)
Net cash used in investing activities (281,302) (144,875)
Cash flows from financing activities:    
Purchase of treasury stock (4,621) (1,407)
Cash dividend paid (387,934) 0
Net cash used in financing activities (392,555) (1,407)
Net decrease in cash and cash equivalents (207,834) (9,599)
Cash and cash equivalents at beginning of year 1,466,719 1,476,318
Cash and cash equivalents at end of year 1,258,885 1,466,719
Supplemental disclosures of cash flows:    
Interest 0 0
Income taxes $ 0 $ 0

Summary Of Significant Accounting Policies
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Summary Of Significant Accounting Policies
 12 Months Ended
Sep. 30, 2011
Summary Of Significant Accounting Policies [Abstract]  
Summary Of Significant Accounting Policies
1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a.  Nature of Business

  Microwave Filter Company, Inc.  operates primarily in the United States and principally in one industry.  The Company extends credit to business customers based upon ongoing credit evaluations.  Microwave Filter Company, Inc.  (MFC) designs, develops, manufactures and sells electronic filters, both for radio and microwave frequencies, to help process signal distribution and to prevent unwanted signals from disrupting transmit or receive operations.  Markets served include cable television, television and radio broadcast, satellite broadcast, mobile radio, commercial communications and defense electronics.  Niagara Scientific, Inc.  (NSI), a wholly owned subsidiary, custom designs case packing machines to automatically pack products into shipping cases.  Customers are processors of food and other commodity products with a need to reduce labor cost with a modest investment and quick payback.  For the last three years, NSI's sales have consisted of spare parts orders.

b.  Basis of Consolidation

  The consolidated financial statements include the accounts of Microwave Filter Company, Inc.  (MFC) and its wholly-owned subsidiaries, Niagara Scientific, Inc.  (NSI) and Microwave Filter International, LTD.  (MFI) (dormant); located in Syracuse, New York.  All significant intercompany balances and transactions have been eliminated in consolidation.

c.  Revenue Recognition

  The Company recognizes revenue at the time products are shipped to customers and title and risk of loss have passed to the customer.  The Company is not required to install any of its products.  Payments received from customers in advance of products shipped are recorded as customer deposits until earned.

d.  Cash and Cash Equivalents

  The Company's financial instruments that are exposed to concentrations of credit risk consist primarily of cash and accounts receivable.  The Company's cash is held at federally insured institutions and balances may periodically exceed insured limits.  The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk with respect to cash.  The Company also routinely assesses the financial strength of its customers and, as a consequence, believes that its trade accounts receivable credit risk exposure is limited.
e.  Investments

  Investments generally consist of commercial paper, government backed obligations and other guaranteed commercial debt that have an original maturity of more than three months and a remaining maturity of less than one year.
Investments are carried at cost which approximates market.  The Company's policy is to hold investments until maturity.  The Company's practice is to invest cash with financial institutions that have acceptable credit ratings.

f.  Trade Accounts Receivable and Allowance for Doubtful Accounts

  Trade accounts receivable are recorded at the invoiced amount and do not bear interest.  The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing accounts receivable.  The Company reviews its allowance for doubtful accounts monthly.  Past due balances over 90 days are reviewed individually for collectibility.  Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.  The Company does not have any off-balance-sheet credit exposure related to its customers.

g.  Inventories and Reserve for Obsolescence

 Inventories are stated at the lower of cost determined on the first-in, first-out method or market.

  The Company records a reserve for obsolete or excess inventory.  The Company considers inventory quantities greater than a one-year supply based on current year activity as well as any additional specifically identified inventory to be excess.  The Company also provides for the total value of inventories that are determined to be obsolete based on criteria such as customer demand and changing technologies.

h.  Research and Development

  Costs in connection with research and development, which amount to $428,693 and $448,901 for the fiscal years 2011 and 2010, respectively, are charged to operations as incurred.  

i.  Property, Plant and Equipment

  Property, plant and equipment are recorded at cost.  Depreciation is provided using the straight-line method over the estimated useful lives of the respective assets.  Buildings and building improvements are depreciated over an estimated service life of 20 to 30 years.  Machinery and equipment are depreciated over an estimated useful life of 3 to 10 years.  Office equipment and fixtures are depreciated over an estimated useful life of 3 to 10 years.  At the time of sale or retirement, the cost and accumulated depreciation are removed from the respective accounts and the resulting gain or loss is recognized in income.

 
j.  Income Taxes

  The Company accounts for income taxes under FASB ASC 740-10 (Prior Authoritative Literature: Statement of Financial Accounting Standards (SFAS) No.  109, Accounting for Income Taxes).  Deferred tax assets and liabilities are based on the difference between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates which are anticipated to be in effect when these differences reverse.  The deferred tax provision is the result of the net change in the deferred tax assets and liabilities.  A valuation allowance is established when it is necessary to reduce deferred tax assets to amounts expected to be realized.  The Company has provided a full valuation allowance against its deferred tax assets.

  The Company adopted FASB ASC 740-10 (Prior Authoritative Literature: FASB Interpretation No.  48, Accounting for Uncertainty in Income Taxes - An Interpretation of FASB Statement No.  109 (FIN 48) as of October 1, 2007.  FASB ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an entity's financial statements and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax position taken or expected to be taken on a tax return.  Additionally, it provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  No adjustments were required upon adoption.

K.  Earnings Per Share

 The Company presents basic earnings per share ("EPS"), computed based on the weighted average number of common shares outstanding for the period, and when applicable diluted EPS, which gives the effect to all dilutive potential shares outstanding (i.e.  options) during the period after restatement for any stock dividends.  Income used in the EPS calculation is net income for each year.

l.  Fair Value of Financial Instruments

  The carrying values of the Company cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short maturity of those instruments.

  The Company currently does not trade in or utilize derivative financial instruments.

m.  Miscellaneous Non-operating Income

  Miscellaneous non-operating income generally consists of sales of scrap material, stock transfer fees, the forfeiture of non-refundable deposits and other incidental items.

n.  Use of Estimates

  The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements.  Estimates also affect the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
o.  Warranty Costs

  The Company established a warranty reserve which provides for the estimated cost of product returns based upon historical experience and any known conditions or circumstances.  Our warranty obligation is affected by product that does not meet specifications and performance requirements and any related costs of addressing such matters.  Warranty costs were approximately $5,000 and $8,000 for the fiscal years ended September 30, 2011 and 2010, respectively.

p.  Impairment of Long-Lived Assets

  The carrying values of long-lived assets other than goodwill are generally evaluated for impairment only if events or changes in facts and circumstances indicate that carrying values may not be recoverable.  Any impairment determined would be recorded in the current period and would be measured by comparing the fair value of the related asset to its carrying value.  Fair value is generally determined by identifying estimated undiscounted cash flows to be generated by those assets.  No impairments have been recorded for the fiscal years ended September 30, 2011 and 2010.

q.  New Accounting Pronouncements

  In June 2011, the FASB issued an Accounting Standard Update ("ASU"), bringing amendments to how other comprehensive income (OCI) is presented in the financial statements.  This update outlines that OCI and its components cannot be reported in the Company's consolidated statements of changes in stockholders' equity.  This guidance is effective from the beginning of the Company's 2013 fiscal year.  This update will not have a material impact to the Company and the Company will comply with the OCI disclosure changes required by the update.

Inventories
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Inventories
 12 Months Ended
Sep. 30, 2011
Inventories [Abstract]  
Inventories
2.  INVENTORIES

Inventories net of provision for obsolescence consisted of the following:
   
September 30
   
2011
    
2010
 
Raw materials and stock parts  
$
499,622
  
$
414,331
Work-in-process    
14,056
    
25,740
Finished goods    
53,583
    
95,933
 
 
$
567,261
  
$
536,004

                                          
  The Company's reserve for obsolescence equaled $392,703 at September 30, 2011 and $403,595 at September 30, 2010.

Property, Plant And Equipment
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Property, Plant And Equipment
 12 Months Ended
Sep. 30, 2011
Property, Plant And Equipment [Abstract]  
Property, Plant And Equipment
3.  PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:
   
September 30,
    
 
 
2011
  
 
2010
 
 
  		 
 
 
Land
$
143,000
  
$
143,000
Building and improvements
 
1,865,502
  
 
1,818,633
Machinery and equipment
 
3,295,490
  
 
3,150,555
Office equipment and fixtures
 
1,805,196
  
 
1,727,587
 
 
  		 
 
 
 
 
7,109,188
  
 
6,839,775
Less: Accumulated depreciation
 
6,491,370
  
 
6,395,357
 
 
  		 
 
 
 
$
617,818
  
$
444,418
 
 
  		 
 
 
Depreciation expense
$
107,902
  
$
98,208

Credit Facilities
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Credit Facilities
 12 Months Ended
Sep. 30, 2011
Credit Facilities [Abstract]  
Credit Facilities
4.  CREDIT FACILITIES

 The Company has unused aggregate lines of credit totaling $750,000 collateralized by inventory, equipment and accounts receivable. The variable interest rate is the "prime rate" as published each business day in the "Money Rates" column of the Wall Street Journal.

Profit Sharing And 401-K Plans
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Profit Sharing And 401-K Plans
 12 Months Ended
Sep. 30, 2011
Profit Sharing And 401-K Plans [Abstract]  
Profit Sharing And 401-K Plans
5.  PROFIT SHARING AND 401-K PLANS

  The Company maintains both a non-contributory profit sharing plan and a contributory 401-K plan for all employees over the age of 21 with one year of service.  Annual contributions to the profit sharing plan are determined by the Board of Directors and are made from current or accumulated earnings, while contributions to the 401-K plan were matched at a rate of 100% of an employee's first 6% of contributions during fiscal 2011.  The maximum corporate match was 6% of an employee's compensation during fiscal 2011.

  The Company's matching contributions to the 401-K plan for the years ended September 30, 2011 and 2010 were $103,188 and $101,049, respectively.  Additionally, the Company may make discretionary contributions to the non-contributory profit sharing plan.  These contributions were $50,000 and $0 in 2011 and 2010, respectively.

Obligations Under Operating Leases
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Obligations Under Operating Leases
 12 Months Ended
Sep. 30, 2011
Obligations Under Operating Leases [Abstract]  
Obligations Under Operating Leases
6.  OBLIGATIONS UNDER OPERATING LEASES

  The Company leases equipment under operating lease agreements expiring at various dates through September 30, 2014.  Rental expense under these leases for the years ended September 30, 2011 and 2010 amounted to $9,290 and $8,940, respectively.

  Minimum rental commitments at September 30, 2011 for these leases are:
 
Year Ended
  
Lease
 
September 30,
  
Payments
 
----------------
  
------------
 
2012
$
9,290
 
2013
  
9,290
 
2014
  
1,490
       
   
$
20,070

Income Taxes
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Income Taxes
 12 Months Ended
Sep. 30, 2011
Income Taxes [Abstract]  
Income Taxes
7.  INCOME TAXES

  The provision for income taxes consisted of the following:
       
Year Ended September 30,
  
       
2011
        
2010
  
Currently payable:                    
     Federal
$
 
13,030
 
$
 
29,599
 
     State
 
(
40,402
)
 
 
260
 
Deferred (credit)
 
 
 
0
 
 
(
29,599
)
 
 
 
 
 
 
 
 
 
 
 
 
$
(
27,372
)
$
 
260
 
 
 
 
 
 
 
 
 
 
 

A reconciliation of the statutory federal income tax rate and the Company's effective income tax rate is as follows:

      Year ended September 30,  
   
2011
  
2010
      Amount     %       Amount     %  
Statutory tax rate   $ 73,285     34.0 %   $ 49,827     34.0 %
State income tax net of:                            
     Federal benefit   ( 26,665 ) ( 12.4 %)     0     0 %
Research and experimentation                            
     tax credits   ( 27,865 ) ( 12.9 %)   ( 29,179 ) ( 19.9 %)
Federal graduated rate differential   ( 10,152 ) ( 4.7 %)     0     0.0 %
Valuation allowance change   ( 114,754 ) ( 53.2 %)   ( 20,560 ) ( 14 %)
NOL true up     78,577     36.5 %     0     0.0 %
Permanent differences    
202
    
0.0
 %    
0
    
0.0
 %
                             
  $  (
27,372
 ) (
12.7
 %)   $
260
    
0.1
 %
 
The temporary differences which give rise to deferred tax assets and (liabilities) at September 30 are as follows:
     
2011
      
2010
  
                 
Inventory
$
 
139,354
  
$
 
143,816
  
Accrued warranty
 
 
4,250
  
 
 
4,250
  
Accrued vacation
 
 
98,286
  
 
 
96,454
  
Accounts receivable
 
 
8,895
  
 
 
6,043
  
Valuation allowance
 
(
250,785
 )
 
(
250,563
 )
 
 
 
  		 
 
 
  		 
Net deferred tax assets
 
 
  		 
 
 
  		 
(liabilities) - current
 
 
0
  
 
 
0
  
 
 
 
  		 
 
 
  		 
 
 
 
  		 
 
 
  		 
Accelerated depreciation
$
(
32,634
 )
$
 
9,949
  
Research and experimentation
 
 
  		 
 
 
  		 
tax credit carry forward
 
 
197,403
  
 
 
191,219
  
AMT credit carry forward
 
 
39,399
  
 
 
39,399
  
NOL carry forward
 
 
0
  
 
 
78,577
  
Valuation allowance
 
(
204,168
 )
 
(
319,144
 )
 
 
 
  		 
 
 
  		 
Net deferred tax assets
 
 
  		 
 
 
  		 
(liabilities) – noncurrent
$
 
0
  
$
 
0
  
 
 
 
  		 
 
 
  		 
Net deferred tax assets
$
 
0
  
$
 
0
  


  As required by FASB ASC 740 (Prior Authoritative Literature: SFAS 109, Accounting for Income Taxes) the Company has evaluated the positive and negative evidence bearing upon the realization of its deferred tax assets.  The Company has determined that, at this time, it is more likely than not that the Company will not realize all of the benefits of federal and state deferred tax assets, and, as a result, a valuation allowance was established.  The research and experimentation tax credit carry forwards and NOL carry forwards expire in 2030.  At September 30, 2011, the Company's federal AMT credit can be carried forward indefinitely.

Industry Segment Data
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Industry Segment Data
 12 Months Ended
Sep. 30, 2011
Industry Segment Data [Abstract]  
Industry Segment Data

8.  INDUSTRY SEGMENT DATA

  The Company's primary business segment involves the operations of Microwave Filter Company, Inc.  (MFC) which designs, develops, manufactures and sells electronic filters, both for radio and microwave frequencies, to help process signal distribution and to prevent unwanted signals from disrupting transmit or receive operations.

Significant Customers
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Significant Customers
 12 Months Ended
Sep. 30, 2011
Significant Customers [Abstract]  
Significant Customers
9.  SIGNIFICANT CUSTOMERS

  Sales to one customer represented approximately 18% of total sales during fiscal 2011 compared to approximately 15% of total sales for the fiscal year ended September 30, 2010.

Legal Matters
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Legal Matters
 12 Months Ended
Sep. 30, 2011
Legal Matters [Abstract]  
Legal Matters
10.  LEGAL MATTERS

  The State of New York Workers' Compensation Board has commenced an action against Microwave Filter Company, Inc.  to recover for an underfunded self insured program that Microwave Filter Company, Inc.  participated in.  Due to the relatively short period of time Microwave Filter Company, Inc.  participated in the program and the limited amount of potential exposure, we do not expect the resolution of this action will have a material adverse effect on our financial condition, results of operations or cash flows.