Document And Entity Information
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Document And Entity Information
3 Months Ended
Dec. 31, 2011
Feb. 01, 2012
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Dec. 31, 2011  
Document Fiscal Year Focus 2012  
Document Fiscal Period Focus Q1  
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
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Consolidated Balance Sheets (USD $)
Dec. 31, 2011
Sep. 30, 2011
Assets    
Cash and cash equivalents $ 1,298,693 $ 1,258,885
Accounts receivable-trade, net of allowance for doubtful accounts of $26,000 and $26,000 221,686 352,054
Federal and state income tax recoverable 0 24,828
Inventories, net 517,391 567,261
Prepaid expenses and other current assets 81,867 94,114
Total current assets 2,119,637 2,297,142
Property, plant and equipment, net 769,313 617,818
Total assets 2,888,950 2,914,960
Liabilities and Stockholders' Equity    
Accounts payable 151,701 195,535
Customer deposits 57,909 51,886
Accrued federal and state income taxes 574 0
Accrued payroll and related expenses 39,421 57,514
Accrued compensated absences 228,845 250,443
Other current liabilities 31,755 83,654
Total current liabilities 510,205 639,032
Total liabilities 510,205 639,032
Stockholders' Equity    
Common stock, $.10 par value Authorized 5,000,000 shares, Issued 4,324,140 shares in 2012 and 2011, Outstanding 2,586,227 shares in 2012 and 2011 432,414 432,414
Additional paid-in capital 3,248,706 3,248,706
Retained earnings 388,302 285,485
Common stock in treasury, at cost 1,737,913 shares in 2012 and 2011 (1,690,677) (1,690,677)
Total stockholders' equity 2,378,745 2,275,928
Total liabilities and stockholders' equity $ 2,888,950 $ 2,914,960

Consolidated Balance Sheets (Parenthetical)
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Consolidated Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2011
Sep. 30, 2011
Consolidated Balance Sheets [Abstract]    
Accounts receivable, allowance for doubtful accounts $ 26,000 $ 26,000
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 2,586,227
Treasury stock, shares 1,737,913 1,737,913

Consolidated Statements Of Operations
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Consolidated Statements Of Operations (USD $)
3 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Consolidated Statements Of Operations [Abstract]    
Net sales $ 1,317,207 $ 1,294,567
Cost of goods sold 813,995 827,308
Gross profit 503,212 467,259
Selling, general and administrative expenses 421,970 421,214
Income from operations 81,242 46,045
Other income (net) 21,575 1,548
Income before income taxes 102,817 47,593
Provision (benefit) for income taxes 0 0
NET INCOME $ 102,817 $ 47,593
Per share data:    
Basic and diluted earnings per share $ 0.04 $ 0.02
Shares used in computing net earnings per share 2,586,227 2,589,885

Consolidated Statements Of Cash Flows
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Consolidated Statements Of Cash Flows (USD $)
3 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Cash flows from operating activities:    
Net income $ 102,817 $ 47,593
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation 37,583 22,759
Gain on sale of fixed assets (20,000) 0
Change in assets and liabilities:    
Accounts receivable 130,368 67,268
Federal and state income tax recoverable 25,402 0
Inventories 49,870 (17,252)
Prepaid expenses and other assets 12,247 20,292
Accounts payable and customer deposits (37,811) 91,436
Accrued payroll, compensated absences and related expenses (39,691) (36,128)
Other current liabilities (51,899) 5,375
Net cash provided by (used in) operating activities 208,886 201,343
Cash flows from investing activities:    
Capital expenditures (189,078) (4,470)
Proceeds from sale of fixed assets 20,000 0
Net cash (used in) provided by investing activities (169,078) (4,470)
Cash flows from financing activities:    
Purchase of treasury stock 0 (1,912)
Net cash (used in) provided by financing activities 0 (1,912)
Net increase (decrease) in cash and cash equivalents 39,808 194,961
Cash and cash equivalents at beginning of period 1,258,885 1,466,719
Cash and cash equivalents at end of period 1,298,693 1,661,680
Supplemental Schedule of Cash Flow Information:    
Income taxes paid $ 15,000 $ 0

Summary Of Significant Accounting Policies
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Summary Of Significant Accounting Policies
3 Months Ended
Dec. 31, 2011
Summary Of Significant Accounting Policies [Abstract]  
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 three month period ended December 31, 2011 are not necessarily indicative of the results that may be expected for the year ended September 30, 2012. 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, 2011.


Industry Segment Data
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Industry Segment Data
3 Months Ended
Dec. 31, 2011
Industry Segment Data [Abstract]  
Industry Segment Data

Note 2. Industry Segment Data

  The Company's business 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
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Inventories
3 Months Ended
Dec. 31, 2011
Inventories [Abstract]  
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:

December 31, 2011
September 30, 2011











Raw materials and stock parts

$ 455,304
$
499,622
Work-in-process


15,521

14,056
Finished goods


46,566

53,583




 


 




$ 517,391
$
567,261

  The Company's reserve for obsolescence equaled $392,703 at December 31, 2011 and September 30, 2011.

Income Taxes
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Income Taxes
3 Months Ended
Dec. 31, 2011
Income Taxes [Abstract]  
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.

  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
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Legal Matters
3 Months Ended
Dec. 31, 2011
Legal Matters [Abstract]  
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. The Company has accrued $12,000 for this action in other current liabilities.


Fair Value Of Financial Instruments
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Fair Value Of Financial Instruments
3 Months Ended
Dec. 31, 2011
Fair Value Of Financial Instruments [Abstract]  
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
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Significant Customers
3 Months Ended
Dec. 31, 2011
Significant Customers [Abstract]  
Significant Customers

Note 7. Significant Customers

Sales to one customer represented approximately 16% of total sales for the three months ended December 31, 2011 compared to 14% of total sales for the three months ended December 31, 2010.


Recent Accounting Pronouncements
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Recent Accounting Pronouncements
3 Months Ended
Dec. 31, 2011
Recent Accounting Pronouncements [Abstract]  
Recent Accounting Pronouncements

Note 8. Recent Accounting Pronouncements

   In May 2011, the FASB issued Accounting Standards Update No. 2011-04, topic 820, Fair Value Measurement, to improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with United States GAAP and International Financial Reporting Standards. Some of the amendments clarify the Board's intent about the application of existing fair value measurement requirements. Other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. Specifically, the guidance requires additional disclosures for fair value measurements that are based on significant unobservable inputs. The updated guidance is to be applied prospectively and is effective for the Company's interim and annual periods beginning January 1, 2012. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. 

   FASB Accounting Standards Update 2011-05, "Presentation of Comprehensive Income," was issued in June 2011 to be effective for fiscal years beginning after December 15, 2011. Comprehensive income includes certain items that are recognized as "other comprehensive income" ("OCI") and are excluded from net income. Examples include unrealized gains/losses on certain investments and gains/losses on derivative instruments designated as hedges. Under provisions of the update, the components of OCI must be presented in one of two formats: either (i) together with net income in a continuous statement of comprehensive income or (ii) in a second statement of comprehensive income to immediately follow the income statement. An existing option to present the components of OCI as part of the statement of changes in shareholders' equity is being eliminated. The Company expects the update to have minimal effect on its financial statements.

   In September 2011, the Financial Accounting Standards Board, or FASB, amended existing guidance related to intangibles - goodwill and other by giving an entity the option to first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount. If this is the case, companies will need to perform a more detailed two-step goodwill impairment test which is used to identify potential goodwill impairments and to measure the amount of goodwill impairment losses to be recognized, if any. This pronouncement is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted. We intend to adopt this guidance for our fiscal year beginning October 1, 2012. We do not believe the adoption of this guidance will have a material impact on our financial statements.