Document And Entity Information
v4.1.212.0
Document And Entity Information
9 Months Ended
Jun. 30, 2011
Aug. 01, 2011
Document And Entity Information    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2011
Document Fiscal Year Focus 2011  
Document Fiscal Period Focus Q3  
Entity Filer Category Smaller Reporting Company  
Entity Registrant Name MICROWAVE FILTER CO INC /NY/  
Entity Central Index Key 0000716688  
Current Fiscal Year End Date --09-30  
Entity Common Stock, Shares Outstanding   2,586,227

Consolidated Balance Sheets
v4.1.212.0
Consolidated Balance Sheets (USD $)
Jun. 30, 2011
Sep. 30, 2010
Assets    
Cash and cash equivalents $ 1,662,968 $ 1,466,719
Accounts receivable-trade, net of allowance for doubtful accounts of $26,000 and $18,000 283,876 423,666
Inventories, net 564,400 536,004
Prepaid expenses and other current assets 59,726 92,417
Total current assets 2,570,970 2,518,806
Property, plant and equipment, net 479,842 444,418
Total assets 3,050,812 2,963,224
Liabilities and Stockholders' Equity    
Accounts payable 134,767 161,676
Customer deposits 46,150 39,618
Accrued federal and state income taxes 2,544 2,544
Accrued payroll and related expenses 48,652 52,932
Accrued compensated absences 246,580 245,055
Other current liabilities 28,928 35,831
Total current liabilities 507,621 537,656
Total liabilities 507,621 537,656
Stockholders' Equity:    
Common stock, $.10 par value Authorized 5,000,000 shares, Issued 4,324,140 shares in 2011 and 2010, Outstanding 2,586,227 shares in 2011 and 2,591,486 shares in 2010 432,414 432,414
Additional paid-in capital 3,248,706 3,248,706
Retained earnings 552,748 430,504
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 2,543,191 2,425,568
Total liabilities and stockholders' equity $ 3,050,812 $ 2,963,224

Consolidated Balance Sheets (Parenthetical)
v4.1.212.0
Consolidated Balance Sheets (Parenthetical) (USD $)
Jun. 30, 2011
Sep. 30, 2010
Consolidated Balance Sheets    
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
v4.1.212.0
Consolidated Statements Of Operations (USD $)
3 Months Ended 9 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Jun. 30, 2011
Jun. 30, 2010
Consolidated Statements Of Operations        
Net sales $ 1,179,496 $ 1,029,159 $ 3,732,379 $ 3,257,914
Cost of goods sold 737,692 695,020 2,386,299 2,141,029
Gross profit 441,804 334,139 1,346,080 1,116,885
Selling, general and administrative expenses 395,472 385,031 1,230,582 1,176,672
Income (loss) from operations 46,332 (50,892) 115,498 (59,787)
Other income (net), principally interest 2,700 1,855 6,746 5,606
Income (loss) before income taxes 49,032 (49,037) 122,244 (54,181)
Provision (benefit) for income taxes 0 0 0 0
NET INCOME (LOSS) $ 49,032 $ (49,037) $ 122,244 $ (54,181)
Per share data:        
Basic and diluted earnings (loss) per share $ 0.02 $ (0.02) $ 0.05 $ (0.02)
Shares used in computing net earnings (loss) per share: 2,586,787 2,592,818 2,588,340 2,593,022

Consolidated Statements Of Cash Flows
v4.1.212.0
Consolidated Statements Of Cash Flows (USD $)
9 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Cash flows from operating activities:    
Net income (loss) $ 122,244 $ (54,181)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Depreciation 75,971 71,881
Provision for doubtful accounts 8,391 0
Change in assets and liabilities:    
Accounts receivable 131,399 17,212
Inventories (28,396) (22,628)
Prepaid expenses and other assets 32,691 13,221
Accounts payable and customer deposits (20,377) 681
Accrued payroll, compensated absences and related expenses (2,755) (6,206)
Other current liabilities (6,903) 3,731
Net cash provided by (used in) operating activities 312,265 23,711
Cash flows from investing activities:    
Capital expenditures (111,395) (140,659)
Net cash (used in) provided by investing activities (111,395) (140,659)
Cash flows from financing activities:    
Purchase of treasury stock (4,621) (381)
Net cash (used in) provided by financing activities (4,621) (381)
Increase (decrease) in cash and cash equivalents 196,249 (117,329)
Cash and cash equivalents at beginning of period 1,466,719 1,476,318
Cash and cash equivalents at end of period $ 1,662,968 $ 1,358,989

Summary Of Significant Accounting Policies
v4.1.212.0
Summary Of Significant Accounting Policies
9 Months Ended
Jun. 30, 2011
Summary Of Significant Accounting Policies  
Summary Of Significant Accounting Policies

Note 1. Summary of Significant Accounting Policies   

   The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Regulation S-K. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The operating results for the nine month period ended June 30, 2011 are not necessarily indicative of the results that may be expected for the year ended September 30, 2011. For further information, refer to the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10K for the year ended September 30, 2010.


Industry Segment Data
v4.1.212.0
Industry Segment Data
9 Months Ended
Jun. 30, 2011
Industry Segment Data  
Industry Segment Data

Note 2. 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. Markets served include cable television, television and radio broadcast, satellite broadcast, mobile radio, commercial communications and defense electronics.


Inventories
v4.1.212.0
Inventories
9 Months Ended
Jun. 30, 2011
Inventories  
Inventories

Note 3. Inventories                  

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

  Inventories net of reserve for obsolescence consisted of the following:

June 30, 2011
September 30, 2010











Raw materials and stock parts

$ 440,232
$
414,331
Work-in-process


28,220

25,740
Finished goods


95,948

95,933




 


 




$ 564,400
$
536,004


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

Income Taxes
v4.1.212.0
Income Taxes
9 Months Ended
Jun. 30, 2011
Income Taxes  
Income Taxes Note 4. Income Taxes

  The Company accounts for income taxes under FASB ASC 740-10. 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. 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. The Company determined it has no uncertain tax positions and therefore no amounts are recorded.

Legal Matters
v4.1.212.0
Legal Matters
9 Months Ended
Jun. 30, 2011
Legal Matters  
Legal Matters

Note 5. 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.


Fair Value Of Financial Instruments
v4.1.212.0
Fair Value Of Financial Instruments
9 Months Ended
Jun. 30, 2011
Fair Value Of Financial Instruments  
Fair Value Of Financial Instruments

Note 6. 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.

Significant Customers
v4.1.212.0
Significant Customers
9 Months Ended
Jun. 30, 2011
Significant Customers  
Significant Customers

Note 7. Significant Customers

  Sales to one customer represented approximately 18% of total sales for the nine months ended June 30, 2011.


Recent Accounting Pronouncements
v4.1.212.0
Recent Accounting Pronouncements
9 Months Ended
Jun. 30, 2011
Recent Accounting Pronouncements  
Recent Accounting Pronouncements

Note 8. Recent Accounting Pronouncements

   In June 2011, the Financial Accounting Standards Board, or FASB, issued guidance regarding the presentation of comprehensive income. The new standard requires the presentation of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The new standard also requires presentation of adjustments for items that are reclassified from other comprehensive income to net income in the statement where the components of net income and the components of other comprehensive income are presented. The updated guidance is effective on a retrospective basis for financial statements issued for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2011. The adoption of this guidance will not have a material impact on our financial statements.

   In May 2011, the FASB issued additional guidance on fair value measurements that clarifies the application of existing guidance and disclosure requirements, changes certain fair value measurement principles and requires additional disclosures about fair value measurements. The updated guidance is effective on a prospective basis for financial statements issued for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2011. The adoption of this guidance will not have a material impact on our financial statements.


Subsequent Events
v4.1.212.0
Subsequent Events
9 Months Ended
Jun. 30, 2011
Subsequent Events  
Subsequent Events

Note 9. Subsequent Events

   On August 3, 2011, the Board of Directors of Microwave Filter Company, Inc. declared a special cash dividend of fifteen cents per common share. The dividend is payable on September 6, 2011 to shareholders of record as of August 19, 2011.