Xtera Communications (XCOMQ) 10-Q 11 Feb 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2015	Jan. 31, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	XCOM
Entity Registrant Name	XTERA COMMUNICATIONS, INC.
Entity Central Index Key	1,122,051
Current Fiscal Year End Date	--09-30
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		17,154,641

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Current assets
Cash and cash equivalents	$ 6,714	$ 1,753
Restricted cash	277	1,120
Accounts receivable, net	5,550	6,580
Unbilled receivables	8,725	6,119
Inventories, net	10,938	10,540
Deferred cost	7,149	780
Prepaid expenses and other current asset	843	1,185
Total current assets	40,196	28,077
Property and equipment, net	3,270	3,399
Restricted cash	3,526	152
Intangible assets, net	7,284	7,554
Other assets	90	90
Total assets	54,366	39,272
Current liabilities
Accounts payable	12,318	13,589
Accrued compensation and employee benefits	1,046	760
Deferred revenue	1,172	1,058
Warranty reserve	1,936	1,735
Current portion of long-term debt	11,301	10,707
Other accrued liabilities	7,293	4,966
Total current liabilities	35,066	32,815
Long-term debt less current portion		2,133
Other long-term liabilities	647	631
Total liabilities	$ 35,713	$ 35,579
Commitments and contingencies
Stockholders’ equity (deficit)
Convertible preferred stock value
Common Stock, $0.001 par value, Authorized shares: 100,000,000 and 350,000,000 as of December 31, 2015 and September 30, 2015; Issued and outstanding shares: 17,114,364 and 1,936,056 as of December 31, 2015 and September 30, 2015	$ 17	$ 2
Additional paid-in-capital	410,119	388,047
Accumulated deficit	(391,899)	(384,685)
Accumulated other comprehensive income, net	416	63
Total stockholders’ equity (deficit)	18,653	3,693
Total liabilities and stockholders’ equity	$ 54,366	39,272
Series A-3 Convertible Preferred Stock
Stockholders’ equity (deficit)
Convertible preferred stock value		40
Total stockholders’ equity (deficit)		40
Series B-3 Convertible Preferred Stock
Stockholders’ equity (deficit)
Convertible preferred stock value		39
Total stockholders’ equity (deficit)		39
Series C-3 Convertible Preferred Stock
Stockholders’ equity (deficit)
Convertible preferred stock value		19
Total stockholders’ equity (deficit)		19
Series D-3 Convertible Preferred Stock
Stockholders’ equity (deficit)
Convertible preferred stock value		53
Total stockholders’ equity (deficit)		53
Series E-3 Convertible Preferred Stock
Stockholders’ equity (deficit)
Convertible preferred stock value		$ 115

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2015	Sep. 30, 2015
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	350,000,000
Common stock, shares issued	17,114,364	1,936,056
Common stock, shares outstanding	17,114,364	1,936,056
Series A-3 Convertible Preferred Stock
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	0	40,500,000
Preferred stock, shares issued	0	39,663,482
Preferred stock, shares outstanding	0	39,663,482
Series B-3 Convertible Preferred Stock
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	0	39,500,000
Preferred stock, shares issued	0	38,589,303
Preferred stock, shares outstanding	0	38,589,303
Series C-3 Convertible Preferred Stock
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	0	25,000,000
Preferred stock, shares issued	0	19,081,778
Preferred stock, shares outstanding	0	19,081,778
Series D-3 Convertible Preferred Stock
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	0	60,000,000
Preferred stock, shares issued	0	52,509,212
Preferred stock, shares outstanding	0	52,509,212
Series E-3 Convertible Preferred Stock
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	0	120,000,000
Preferred stock, shares issued	0	114,679,639
Preferred stock, shares outstanding	0	114,679,639

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenue:
Products	$ 10,842	$ 12,179
Services	1,788	1,186
Total revenue	12,630	13,365
Cost of revenue:
Products	12,189	9,224
Services	760	562
Total cost of revenue	12,949	9,786
Gross profit	(319)	3,579
Operating expenses:
Sales and marketing	1,525	1,193
Research and development	2,764	2,752
General and administrative	1,837	1,617
Total operating expense	6,126	5,562
Operating loss	(6,445)	(1,983)
Other income (expense):
Interest expense	(405)	(661)
Interest expense, related party		(343)
Foreign exchange loss	(363)	(242)
Total other expense	(768)	(1,246)
Loss before income taxes	(7,213)	(3,229)
Income tax provision	1	15
Net loss	(7,214)	(3,244)
Preferred dividend		(3,374)
Net loss available to common stockholders	$ (7,214)	$ (6,618)
Loss per common share – basic and diluted	$ (0.71)	$ (3.65)
Weighted average shares – basic and diluted	10,183,075	1,814,630

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (7,214)	$ (3,244)
Other comprehensive income (loss), net of tax:
Foreign currency translation	353	243
Total comprehensive loss, net of tax	$ (6,861)	$ (3,001)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In-Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss), Net	Series A-3 Convertible Preferred Stock	Series B-3 Convertible Preferred Stock	Series C-3 Convertible Preferred Stock	Series D-3 Convertible Preferred Stock	Series E-3 Convertible Preferred Stock
Balance (in shares) at Sep. 30, 2014		1,814,630				39,663,482	38,589,303	19,081,778	52,509,212
Balance at Sep. 30, 2014		$ 2	$ 350,098	$ (368,053)	$ (401)	$ 40	$ 39	$ 19	$ 53
Balance (in shares) at Dec. 31, 2014		1,814,630				39,663,482	38,589,303	19,081,778	52,509,212
Balance at Dec. 31, 2014	$ (21,195)	$ 2	350,107	(371,297)	(158)	$ 40	$ 39	$ 19	$ 53
Amortization of share-based compensation			9
Net loss	(3,244)			(3,244)
Foreign currency translation	243				243
Balance (in shares) at Sep. 30, 2014		1,814,630				39,663,482	38,589,303	19,081,778	52,509,212
Balance at Sep. 30, 2014		$ 2	350,098	(368,053)	(401)	$ 40	$ 39	$ 19	$ 53
Balance (in shares) at Sep. 30, 2015		1,936,056				39,663,482	38,589,303	19,081,778	52,509,212	114,679,639
Balance at Sep. 30, 2015	3,693	$ 2	388,047	(384,685)	63	$ 40	$ 39	$ 19	$ 53
Issuance of stock (in shares)										114,679,639
Exercise of stock option (in shares)		1,545
Conversion to common stock (in shares)		10,174,082				(39,663,482)	(38,589,303)	(19,081,778)	(52,509,212)	(114,679,639)
Conversion to common stock		$ 10	256			$ (40)	$ (39)	$ (19)	$ (53)	$ (115)
Balance (in shares) at Dec. 31, 2015		17,114,364				0	0	0	0	0
Balance at Dec. 31, 2015	$ 18,653	$ 17	410,119	(391,899)	416
Issuance of stock (in shares)		5,000,000								114,679,639
Issuance of stock		$ 5	21,764							$ 115
Exercise of stock option (in shares)	4,226	4,226
Amortization of share-based compensation			$ 52
Net loss	$ (7,214)			$ (7,214)
Foreign currency translation	$ 353				$ 353

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Operating Activities:
Net loss	$ (7,214)	$ (3,244)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	715	658
Provision for inventory obsolescence	1,134	602
Provision for loss on contracts	1,039
Warranty provision	230	215
Share-based compensation	52	9
Interest expense	66	31
Changes in operating assets and liabilities
Accounts receivable	1,024	(5,480)
Unbilled accounts receivable	(2,606)	(1,454)
Inventories	(1,533)	(2,386)
Deferred costs	(6,369)	(2,548)
Prepaid expenses and other assets	341	126
Accounts payable	(1,266)	3,626
Other accrued liabilities	1,489	(161)
Deferred revenue	118	5,699
Net cash used in operating activities	(12,780)	(4,307)
Investing Activities:
Changes in restricted cash	(2,530)	(115)
Purchases of property and equipment	(326)	(185)
Net cash used in investing activities	(2,856)	(300)
Financing Activities:
Repayment of debt	(11,237)	(4,612)
Proceeds from debt	9,633	8,909
Payment of capital lease obligations	(22)
Proceeds from issuance of common stock	21,764
Net cash provided by financing activities	20,138	4,297
Effect of exchange rate changes on cash	459	260
Net increase (decrease) in cash and cash equivalents	4,961	(50)
Cash and cash equivalents at beginning of period	1,753	1,920
Cash and cash equivalents at end of period	6,714	1,870
Supplemental disclosure of cash flow information:
Cash paid for interest	312	274
Cash paid for income taxes	$ 1	$ 15

Nature of Business

Nature of Business	3 Months Ended
	Dec. 31, 2015
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Nature of Business	NOTE 1 - NATURE OF BUSINESS Description of the Company Xtera Communications, Inc. (“Xtera”), a Delaware Corporation, was founded in January 1998. Xtera is a leading provider of high-capacity, cost-efficient optical transport solutions, supporting the high growth in global demand for bandwidth. Xtera sells its high-capacity optical transport systems to telecommunications service providers, content source providers, enterprises and government entities worldwide to support their deployments of long-haul terrestrial and submarine optical cable networks.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consolidation The accompanying consolidated financial statements include the financial position and results of operations of Xtera and its wholly owned subsidiaries (collectively, the “Company”). All intercompany transactions and balances have been eliminated in consolidation. Interim Consolidated Financial Information The accompanying interim consolidated financial statements and footnotes have been prepared by the Company, without audit, in accordance with generally accepted accounting principles in the United States of America, or GAAP, as contained in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or the Codification or ASU, for interim financial information, and with Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ deficit and cash flows. The results of operations for the three months ended December 31, 2015 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2015. Use of Estimates The accompanying consolidated financial statements have been prepared with accounting principles generally accepted in the United States of America, which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the results of operations. Actual results could differ from those estimates. Significant estimates and assumptions relate to the net realizability of accounts receivable, the estimate for future warranty claims, impairments of goodwill, intangible assets and other long-lived assets, share-based compensation and inventory reserves. Going-Concern As shown in the accompanying financial statements, the Company has recurring losses and negative cash flows from operations. As of September 30, 2015, the Company’s current liabilities exceeded its current assets by $4.7 million. These factors raise substantial doubt about the company’s ability to continue as a going concern. The Company has funded its operations through a combination of bank debt, draws on line of credit and sale of common stock. During the three months ended December 31, 2015, the Company closed an initial public offering that raised net proceeds of $21.76 million. Additionally, the Company continues to invest in new product solutions including focus on additional turnkey projects. Management believes this investment will allow the company to attract new customers and leverage relationships with existing customers resulting in improved operating margins and cash flows from operations. To fund this investment, we continue to explore opportunities to improve our working capital position and believe our plans mitigate the substantial doubt about the entity’s ability to continue as a going concern as of December 31, 2015. Accordingly, the accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued Foreign Currency Translation and Transactions The functional currency for the Company’s foreign subsidiaries is the local currency in which the entity is located. The financial statements of all subsidiaries with a functional currency other than the United States Dollar (“U.S. Dollar”) have been translated into U.S. Dollars. All assets and liabilities of foreign operations are translated into U.S. Dollars using year-end exchange rates, and the statement of operations is translated at average exchange rates during the respective period. The U.S. Dollar results that arise from such translation, as well as exchange gains and losses on intercompany balances of a long-term investment nature, are included in the cumulative currency translation adjustments in accumulated other comprehensive loss in stockholders’ equity. For all non-functional currency account balances, the re-measurement of such balances to the functional currency will result in either a foreign exchange transaction gain or loss which is recorded in Foreign exchange gain (loss) in the same period that the re-measurement occurred. Cash and Cash Equivalents Cash and cash equivalents include cash deposits in banks and highly-liquid investments with original maturities of three months or less. Xtera places its temporary cash investments with high credit quality financial institutions. The majority of cash deposits and temporary cash investments are not covered by available depository insurance. The Company has not experienced any losses in such accounts. Restricted Cash Restricted cash represents money market funds held by certain banks. Balances are classified between current and non-current assets based on the expiration dates of the performance bond agreements. At December 31, 2015, restricted cash of $3.8 million is collateral for various performance bonds in various geographical locations. In each case the cash is held in custody by the issuing bank and is restricted to withdrawal or use. Accounts Receivable Accounts receivable, representing amounts due from customers, are generally unsecured and are stated at the amount the Company expects to collect. Interest is generally not charged on overdue receivables. Unbilled receivables represent revenue amounts earned for which the appropriate revenue criteria have been met, but have not yet been billed because of contractual payment terms. The Company estimates an allowance for doubtful accounts based on the creditworthiness of its customers as well as general economic considerations. If a customer's financial condition changes, the Company may be required to record an additional allowance for doubtful accounts for that customer, which could negatively affect its results of operations. All receivables recorded for the three months ended December 31, 2015 and 2014 are fully collectible, and accordingly, no allowance has been recorded. Inventories Inventories consist of component materials and finished goods, which are valued at the lower of cost or market. The cost of inventories is determined using the first-in, first-out method. Market value is based upon an estimated selling price reduced by the estimated cost of disposal. The determination of market value involves numerous judgments including estimated average selling prices based on recent sales volumes, industry trends, existing customer orders, current contract price, future demand and pricing for its products and technological obsolescence of the Company’s products. Inventory that is obsolete or in excess of the Company’s forecasted demand or is anticipated to be sold at a loss is written down to its estimated net realizable value based on historical usage and expected demand and included in cost of revenues. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. The Company recorded a provision for inventory obsolescence of approximately $1.1 million and $0.6 million for the three months ended 2015 and 2014, respectively. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued Impairment of Long-Lived Assets Other Than Goodwill Long-lived assets include property and equipment and intangible assets. The Company evaluates the recoverability of long-lived assets whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. Such circumstances could include, but are not limited to (1) a significant decrease in the market value of an asset, (2) a significant adverse change in the extent or manner in which an asset is used, (3) an accumulation of costs significantly in excess of the amount originally expected for the acquisition of an asset, or (4) current period operating or cash flow loss combined with previous losses or projected future losses. The Company measures the carrying amount of the asset against the estimated undiscounted future cash flows associated with it. Should the sum of the expected future undiscounted net cash flows be less than the carrying value of the asset being evaluated, an impairment loss would be recognized. The impairment loss would be calculated as the amount by which the carrying value of the asset exceeds its fair value. The fair value is measured based on discounted value of estimated future cash flows. The evaluation of asset impairment requires the Company to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. There were no impairments of long-lived assets during the three months ended December 31, 2015 and 2014. Estimated weighted average amortization periods for customer related intangibles and developed technology are 6.4 years and 15.4 years, respectively. Revenue Recognition Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collection is reasonably assured. Customer purchase agreements and customer purchase orders are generally used to determine the existence of an arrangement. Delivery does not occur until products have been shipped or services have been provided to the customer and title and risk of loss have transferred to the customer. The Company assesses whether the priced is fixed and determinable based on the payment term associated with the transaction and whether the sales price is subject to refund or adjustment. Collectability is assessed primarily on the creditworthiness of the customer as determined by the Company as well as the customer’s payment history. Revenue for maintenance services is deferred and recognized ratably over the period during which the services are performed up to three years. Shipping charges billed to customers are included in revenue. The related shipping costs are included in cost of revenue. The Company also provides for estimated costs that may be incurred for product warranties and for sales returns. When other significant obligations or acceptance terms remain after products are delivered, revenue is recognized only after such obligations are fulfilled. Revenue is recognized net of cash discounts and sales tax. Contracts for optical network solutions often involve multiple deliverables which may include any combination of products or services. A typical optical network solution will include a combination of hardware, software and turnkey solutions as well as installation services and training. Revenue under multiple element arrangements is separated into more than one unit of accounting if all of the following criteria are met: · The delivered item(s) has value to the client on a stand-alone basis; · If the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the company. The Company allocates revenue to each element in its multiple element arrangement based upon their relative selling prices. The Company determines the selling prices for each deliverable based on a selling price hierarchy. The selling price for each deliverable is based on vendor-specific objective evidence (“VSOE”) if available, third-party evidence (“TPE”) if VSOE is not available, or the Company’s best estimated selling price (“BESP”) if neither VSOE nor TPE are available. The relative selling price method allocates any discount in the arrangement proportionately to each deliverable on the basis of the deliverable’s estimated fair value. The Company limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations, or subject to customer-specific return or refund privileges. VSOE of selling price is used in the selling price allocation where it exists. However, in most instances, VSOE is unavailable for the Company’s products because the product solution delivered differs for each customer. Further, a substantial majority of the selling prices of each deliverable in the Company’s product solution offerings has not been consistent, and does not fall within a reasonable narrow pricing range. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued The Company’s product solutions contain significant elements of proprietary technology and the solution offered differs substantially from that of the competitors. Also, the Company’s product offerings contain a significant level of configuration unique to a specific customer installation and network which will not generally be interchangeable with a third party product solution. Furthermore, the Company is unable to legally and reliably determine what similar competitor products’ selling prices are on a standalone basis. Therefore, it is typically difficult to obtain the reliable standalone competitive pricing necessary to establish TPE. In instances where established VSOE or reliable TPE is unavailable for the Company products, the Company uses BESP in its allocation of arrangement consideration. VSOE is unavailable for the Company products because the product solution delivered differs for each customer. In addition, reliable TPE does not exist because the Company’s product solution is configured to comply with a pre-defined set of customer specific criteria which largely will not be interchangeable with a third party product solution. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The Company determines BESP for a product or service by considering multiple factors including, but not limited to, cost of production, market conditions, competitive landscape, gross margin objectives, pricing practices, geographies, customer classes and distribution channels. The Company applies the percentage-of-completion method to long-term arrangements where it is required to undertake significant production, customization or modification engineering, and reasonable and reliable estimates of revenue and cost are available. Utilizing the percentage-of-completion method, the Company recognizes revenue based on the ratio of actual costs incurred to date to total estimated costs expected to be incurred. In instances that do not meet the percentage-of-completion method criteria, recognition of revenue is deferred until there are no uncertainties regarding customer acceptance. Unbilled percentage-of-completion revenues recognized are included in unbilled receivables. Billings in excess of revenues recognized on these contracts are recorded within deferred revenue. The percentage of revenue recognized using the percentage-of-completion method for the three months ended December 31, 2015 and 2014 were 63.6% and 0.0%, respectively. The Company’s primary service offerings include services, installation and deployment services, on-site hardware replacement services, system maintenance services, extended hardware warranty services and training across a broad spectrum of products within the optical networking industry. These services are provided on a time-and-materials basis or as a fixed-price contract with contract terms ranging up to three years. Revenue from time-and-material contracts is recognized as labor hours are delivered and direct expenses are incurred. Revenue from fixed price system maintenance and extended warranty contracts is recognized on a straight-line basis over the delivery period. Installation revenue is generally recognized once installation is complete. Deferred revenue is recorded when cash has been received from the customer and the arrangement does not qualify for revenue recognition under the revenue recognition policies described above. Costs incurred for projects not completed are deferred and recorded as a cost upon recognition of the related revenue. Computation of Net Income (Loss) per Share The Company calculates basic earnings per share ("EPS") by dividing earnings attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted EPS includes other potential dilutive shares that would be outstanding if securities or other contracts to issue common stock were exercised or converted into common stock. A reconciliation of the numerator and denominator used for the basic and diluted EPS computations is set forth in Note 17 below. Share-Based Compensation Share-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period (generally the vesting period) under the straight-line amortization method. The Company estimates the fair value of the stock options granted using the Black-Scholes option pricing model which requires a number of estimates and assumptions in determining share-based compensation related to options. Inherent in this model are assumptions related to the fair value of the common stock, stock-price volatility, option life, risk-free interest rate and dividend yield. While the risk-free interest rate and dividend yield are less subjective assumptions, typically based on factual data, the expected stock-price volatility and option life assumptions require a greater level of judgment. The Company has not and does not anticipate distributing dividends to stockholders and accordingly uses a 0% dividend yield assumption for all Black-Scholes option pricing calculations. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued The Company uses an expected stock-price volatility assumption that is primarily based on comparable stock of public companies. With regard to the weighted-average option life assumption, the Company evaluates the exercise behavior of past grants as a basis to predict future activity. The amount of stock based compensation expense is net of an estimated forfeiture rate, which is also based on historical data. The Company recognizes the estimated fair value of restricted stock units, net of estimated forfeitures, as share-based expense over the service period. The Company uses the straight-line method to record expense for share-based awards with service-based vesting. Income Taxes The Company’s income taxes are accounted for in accordance with the asset and liability method of accounting for income taxes. Under the asset and liability method, a deferred tax asset or liability is recognized for estimated future tax effects attributable to temporary differences and carryforwards. The measurement of deferred income tax assets is adjusted by a valuation allowance, if necessary, to recognize future tax benefits only to the extent, based on available evidence, it is more likely than not such benefit will be realized. Income tax expense or benefit is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. Tax positions are recognized only when it is more likely than not (likelihood of greater than 50%), based on technical merits, that the positions will be sustained upon examination. Tax positions that meet the more-likely-than-not threshold are measured using a probability weighted approach as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. Whether the more-likely-than-not recognition threshold is met for a tax position is a matter of judgment based on the individual facts and circumstances of that position evaluated in light of all available evidence. The Company recognizes interest and penalties related to uncertain tax positions in operating expenses. Sales Taxes The Company is required by the applicable governmental authorities to collect and remit sales taxes. Accordingly, such amounts are charged to the customer, collected and remitted directly to the appropriate jurisdictional entity. The Company reports revenue net of any taxes collected from customers and remitted to the relevant government authority. Warranty Reserve The Company provides a limited one to five year warranty on its products and accrues for estimated future warranty costs in the period in which revenue is recognized. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The following table reflects the changes in the Company’s warranty reserve: Three Months Ended December 31, 2015 Three Months Ended December 31, 2014 (In thousands) Warranty reserve, beginning of period $ 1,735 $ 978 Provision 230 215 Claims (29 ) (74 ) Warranty reserve, end of period $ 1,936 $ 1,119 Fair Value of Financial Instruments The carrying value of financial instruments reported in the accompanying consolidated balance sheets for cash, cash equivalents, accounts receivable, accounts payable, and accrued expenses payable and other liabilities, approximate fair value due to the immediate or short-term nature or maturity of these financial instruments. The carrying amount for the Company’s credit facility approximates fair value due to the short-term nature of the facilities as well as the use of variable interest rates that adjust periodically.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Dec. 31, 2015
Accounting Changes And Error Corrections [Abstract]
Recent Accounting Pronouncements	NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers. Revenue Recognition Revenue from Contracts with Customers. In January 2015, the FASB issued ASU 2015-01, Income Statement—Extraordinary and Unusual Items In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest

Inventories

Inventories	3 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Inventories	NOTE 4 - INVENTORIES Inventories consist of the following: As of December 31, As of September 30, 2015 2015 (In thousands) Component materials $ 8,031 $ 6,442 Finished goods 14,212 15,062 22,243 21,504 Inventory reserves (11,305 ) (10,964 ) Net inventories $ 10,938 $ 10,540 The following table reflects the changes in the Company’s inventory reserve: Three Months Ended December 31, Three Months Ended December 31, 2015 2014 (In thousands) Inventory reserve, beginning of period $ 10,964 $ 9,857 Provision - continuing operations 1,134 602 Write-offs (793 ) (247 ) Inventory reserve, end of period $ 11,305 $ 10,212 NOTE 4 - INVENTORIES — Continued The Company writes down its inventory for estimated obsolescence or unmarketable inventory by an amount equal to the difference between the cost of inventory and the estimated net realizable value based on assumptions about future demand and market conditions. As product moves through its life cycle, the Company anticipates that reserves will be required to reflect estimated net realizable value of the product. The increased provision is primarily related to the Company’s older technologies that are no longer being incorporated in new solutions for customers.

Property and Equipment

Property and Equipment	3 Months Ended
	Dec. 31, 2015
Property Plant And Equipment [Abstract]
Property and Equipment	NOTE 5 - PROPERTY AND EQUIPMENT Property and equipment consists of the following: As of December 31, As of September 30, 2015 2015 (In thousands) Computer software $ 2,526 $ 2,509 Fixtures and equipment 25,737 25,575 Leasehold improvements 1,112 1,672 29,375 29,756 Accumulated depreciation and amortization (26,105 ) (26,357 ) Property and equipment, net $ 3,270 $ 3,399 Depreciation and amortization expense for the three months ended December 31, 2015 and 2014 totaled approximately $0.4 million and $0.4 million, respectively. Included in fixtures and equipment is property leased under capital leases totaling $0.38 million and $0.38 million at December 31, 2015 and September 30, 2015, respectively. Depreciation expense on property leased under capital leases for the three months ended December 31, 2015 and 2014 totaled approximately $0.01 million and $0.0 million, respectively.

Intangible Assets

Intangible Assets	3 Months Ended
	Dec. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets	NOTE 6 - INTANGIBLE ASSETS As of the dates indicated, intangible assets are comprised of the following (in thousands): As of December 31, 2015 As of September 30, 2015 Gross Intangible Accumulated Amortization Net Intangible Gross Intangible Accumulated Amortization Net Intangible Customer related intangible assets $ 2,796 $ 2,796 $ — $ 2,796 $ 2,796 $ — Developed technology 15,838 8,554 7,284 15,838 7,554 8,284 Total intangible assets $ 18,634 $ 11,350 $ 7,284 $ 18,634 $ 10,350 $ 8,284 Amortization expense for the three months ended December 31, 2015 and 2014 was approximately $0.3 million and $0.3 million respectively. Expected future amortization of intangible assets for the fiscal years indicated is as follows:

Debt

Debt	3 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Debt	NOTE 7 - DEBT Long-term debt consists of the following: As of December 31, As of September 30, 2015 2015 (In thousands) Term loan $ 5,312 $ 6,129 Line of credit 5,989 6,711 11,301 12,840 Less current maturities (11,301 ) (10,707 ) Total long-term debt $ — $ 2,133 On May 10, 2011, the Company entered into a venture loan and security agreement with a financial institution that provided for an initial term loan of up to $10.0 million and an option for an additional term loan of up to $2.0 million and issued to the financial institution a warrant to purchase 983,607 shares of the Company’s preferred stock. The Company’s obligations under the loan and security agreement are secured by a security interest on all of its assets, including its intellectual property. The loan and security agreement contains customary events of default and non-financial covenants, including covenants limiting the Company’s ability to incur liens, dispose of assets, pay dividends or make other distributions to holders of its equity securities, merge with or acquire other entities, incur debt, and make investments, in each case subject to certain exceptions. The loan and security agreement does not require the Company to comply with any financial covenants. The initial term loan bears interest at 11.5% per annum, matures on December 1, 2014, and requires interest only payments through June 1, 2012 and principal and interest payment thereafter. The warrant expires on November 17, 2020 and upon completion of the Company’s initial public offering, is exercisable for 37,832 shares of the Company’s common stock. A $2 million outstanding balance due to the financial institution was repaid using a portion of the proceeds from the initial term loan. The Company exercised the option to obtain the additional $2 million loan on December 27, 2011. The additional term loan bears interest at 11.5% per annum, matures on July 1, 2015, and requires interest only payments through January 1, 2013 and principal and interest payments thereafter. Based on their relative fair values at issuance, $8.8 million of the proceeds was allocated to the term loan and $1.2 million to warrants. The relative fair value of the warrants which was determined using the Black Scholes Option pricing model, was recorded as additional paid-in-capital and reduced the carrying value of the loan. The warrants are being amortized to interest expense over the term of the loan using the effective interest method. Effective March 1, 2014, the Company modified the venture loan and security agreement with the above financial institution to combine the two loans, change the interest rate, revise the repayment schedule amount and extend the maturity date. The modified term loan bears interest at 12.5% per annum and matures on December 31, 2016. The modification added additional nominal payment at the end of the debt term. The Company may, at its option, prepay the borrowings by paying a prepayment premium. No other changes were made to the terms of the debt. The fees paid for the modification are being amortized as an adjustment of interest expense using the interest method. At December 31, 2015, the unamortized warrant was $0.0 million, and the outstanding balance of the loan totaled $5.3 million. In June 2010, the Company obtained a $7.5 million revolving line of credit facility from a bank. The line of credit expired in October 2011, was modified and reinstated in February 2012, and renewed in December 2013. Borrowings under the line of credit bear interest at the greater of (i) 4.25% and (ii) the prime rate plus 3.25%. All borrowings are collateralized by the Company’s receivables and inventory. Borrowings under the line of credit are subject to certain restrictions on indebtedness, dividend payments, financial guarantees, business combinations, and other related items. The renewed facility expired on January 1, 2015 and the Company elected to obtain a new line of credit facility from another bank. NOTE 7 - DEBT — Continued In January 2015, the Company obtained a revolving line of credit facility with a bank for $12.5 million, as defined in the loan and security agreement. The line of credit expired on January 15, 2016 and has been modified and extended through April 15, 2016. Borrowings under the line of credit bear interest at the greater of (i) 7.0% and (ii) the prime rate plus 3.5%. The Company’s obligations under the loan and security agreement are secured by a security interest on all of its assets. The financial institution described above has agreed to subordinate its obligations to those under the revolving line of credit facility. The outstanding balance on the line of credit was $6.0 million at December 31, 2015 and $4.1 million was available for borrowing based on the borrowing base at December 31, 2015. The loan and security agreement contain customary conditions to borrowing, events of default, and covenants, including covenants limiting the Company’s ability to merge or consolidate with other entities, acquire or dispose of assets, make investments, incur debt and pay dividends, in each case subject to certain exceptions. One financial covenant requires us to maintain a minimum adjusted cash flow. As of December 31, 2015 the Company is in compliance with the terms of the revolving line of credit facility. Concurrently with entering into the loan and security agreement, the Company issued to the bank a warrant to purchase 769,231 shares of the Company’s preferred stock that expires on the tenth anniversary of its date of issuance. As of the completion of the Company’s initial public offering, the warrant became exercisable for 29,586 shares of the Company’s common stock. The relative fair value of the warrant was $0.3 million, which was determined using the Black Sholes Option pricing model, was recorded as additional paid-in-capital and reduced the carrying value of the loan. The warrant is being amortized to interest expense over the term of the loan using the effective interest method. The debt obligations for future fiscal years are as follows: As of December 31, 2015 (In thousands) Remainder of 2016 $ 9,169 2017 2,132 11,301 Less current maturities (11,301 ) Total long-term debt $ —

Employee Benefit Plan

Employee Benefit Plan	3 Months Ended
	Dec. 31, 2015
Compensation And Retirement Disclosure [Abstract]
Employee Benefit Plan	NOTE 8 - EMPLOYEE BENEFIT PLAN The Company sponsors a defined contribution 401(k) plan which covers all full-time employees who are at least 18 years of age. Participants may contribute up to 60% of pretax compensation, subject to certain limitations. Employee contributions are invested, at the employees’ discretion, among a variety of investment alternatives. Company contributions are discretionary. No contributions were made for the three months ended December 31, 2015 and 2014.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	NOTE 9 - FAIR VALUE MEASUREMENTS Fair value for the measurement of financial assets and liabilities is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measure date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company utilizes a valuation hierarchy for disclosure of the inputs for fair value measurement. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company’s Level 1 assets are investments in money market mutual funds, government agency bonds, United States treasuries and certificates of deposit. Level 2: Quoted prices for similar assets or liabilities in active markets; or observable prices that are based on observable market data, based on directly or indirectly market-corroborated inputs. The Company has no Level 2 inputs. Level 3: Unobservable inputs supported by little or no market activity, and are developed based on the best information available given the circumstances. The Company has no Level 3 inputs. NOTE 9 - FAIR VALUE MEASUREMENTS — Continued By distinguishing between inputs that are observable in the marketplace, and therefore more objective, and those that are unobservable and therefore more subjective, the hierarchy is designed to indicate the relative reliability of the fair value measurements. A financial asset’s or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The primary objective of the Company’s investment activities is to preserve principal while maximizing yields without significantly increasing risk. The investment instruments held by the Company are money market funds and interest bearing deposits for which quoted market prices are readily available. The Company considers these highly liquid investments to be cash equivalents. These investments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The following table presents financial assets at December 31, 2015 for which the Company measures fair value on a recurring basis, by level, within the fair value hierarchy (in thousands): Asset Level 1 Level 2 Level 3 Total Money market funds $ 3,694 $ — $ — $ 3,694 Government securities 109 — — 109 Total assets $ 3,803 $ — $ — $ 3,803 Amounts included in: Restricted cash $ 3,803 $ — $ — $ 3,803 Total $ 3,803 $ — $ — $ 3,803 The following table presents financial assets at September 30, 2015 for which the Company measures fair value on a recurring basis, by level, within the fair value hierarchy (in thousands): Asset Level 1 Level 2 Level 3 Total Money market funds $ 1,160 $ — $ — $ 1,160 Government securities 112 — — 112 Total assets $ 1,272 $ — $ — $ 1,272 Amounts included in: Restricted cash $ 1,272 $ — $ — $ 1,272 Total $ 1,272 $ — $ — $ 1,272

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 10 - INCOME TAXES The following is a geographic breakdown of the provision for income taxes (in thousands): Three Months Ended December 31, 2015 2014 Domestic $ — $ — Foreign 1 15 Total $ 1 $ 15 The Company had an effective tax rate for the three months ended December 31, 2015 and 2014 of (0.01)% and (0.08)%, respectively. The total income tax provision for the three months ended December 31, 2015 and 2014 differed from amounts computed by applying the U.S. federal statutory tax rate to loss before income taxes primarily due to the recording of the valuation allowance against the net deferred tax assets. NOTE 10 - INCOME TAXES — Continued Federal net operating losses may be carried forward for 20 years. The Company has estimated federal net operating loss carryforwards at December 31, 2015 of approximately $214 million which begin to expire in the year 2018. The net operating loss does consider potential limitations under IRC Section 382 which defers or limit the benefit to offset future taxable income. The Company has established a valuation allowance to reserve the net deferred tax asset at December 31, 2015 and September 30, 2015 due to the uncertainty of the timing and amount of future taxable income. The valuation allowance will continue to be recognized until the realization of future deferred tax benefits are more likely than not to become utilized.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Stockholders' Equity	NOTE 11 - STOCKHOLDERS’ EQUITY Number of shares issued and outstanding (in whole shares): Preferred Preferred Preferred Preferred Preferred Shares Shares Shares Shares Shares Convertible Convertible Convertible Convertible Convertible Common Series A-3 Series B-3 Series C-3 Series D-3 Series E-3 Stock As of September 30, 2014 39,663,482 38,589,303 19,081,778 52,509,212 — 1,814,630 Issuance of Preferred stock — — — — 114,679,639 — Exercise of warrants — — — — — 119,881 Exercise of stock options — — — — — 1,545 As of September 30, 2015 39,663,482 38,589,303 19,081,778 52,509,212 114,679,639 1,936,056 Conversion of preferred stock to common stock (39,663,482 ) (38,589,303 ) (19,081,778 ) (52,509,212 ) (114,679,639 ) 10,174,082 Issuance of common stock — — — — — 5,000,000 Exercise of stock options — — — — — 4,226 As of December 31, 2015 — — — — — 17,114,364 Convertible Preferred Stock On September 22, 2011, in connection with the subscription offering of Series D-3 Preferred Stock, the Company amended and restated its certificate of incorporation and designated its preferred stock as Series A-3 Convertible Preferred Stock, Series B-3 Convertible Preferred Stock, Series C-3 Convertible Preferred Stock and Series D-3 Convertible Preferred Stock. The impacts of the amended certificate of incorporation on previously issued preferred stocks are described in detail below. As a result of the Company’s amended and restated certificate of incorporation on September 22, 2011, all outstanding shares of Series A-2, B-2 and C-2 preferred stock owned by stockholders participating in the new preferred equity issuance were exchanged for an equal number of shares of Series A-3, B-3 and C-3 preferred stock, respectively. All outstanding shares of Series A-2, B-2 and C-2 preferred stock owned by stockholders that did not participate in the new preferred equity issuance were automatically converted to an equal number of shares of common stock. As of September 30, 2014, there were no issued and outstanding shares of Series A-2, B-2 and C-2 preferred stock or cumulative but undeclared dividends due thereon. On October 25, 2015, the Company amended and restated certificate of incorporation and designated its preferred stock as Series A-3 Preferred Stock, Series B-3 Preferred Stock, Series C-3 Preferred Stock, Series D-3 Preferred Stock, and Series E-3 Preferred Stock. Conversion of Preferred Stock In connection with the closing of the Company’s initial public offering, on November 17, 2015, the outstanding shares of Series A-3 Preferred Stock, Series B-3 Preferred Stock, Series C-3 Preferred Stock, Series D-3 Preferred Stock, and Series E-3 Preferred Stock were converted into 10,174,082 shares of common stock. The Common Stock issued in connection with this conversion is subject to lock-up requirements for periods that expire May 10, 2016. NOTE 11 - STOCKHOLDERS’ EQUITY — Continued Reverse Stock Split On October 26, 2015, the Company effected a 26-for-one reverse stock split of its common stock. Upon the effectiveness of the reverse stock split, (i) every 26 shares of outstanding common stock were reclassified and combined into one share of common stock, (ii) the number of shares of common stock for which each outstanding option and warrant to purchase common stock is exercisable was proportionately decreased and the exercise price of each outstanding option and warrant to purchase common stock was proportionately increased and (iii) the conversion rate at which each share of the Company's convertible preferred stock was convertible into common stock was proportionately decreased. Fractional shares of common stock were rounded up to the nearest whole share. The total number of authorized shares of common stock and the par value per share of common stock did not change as a result of the reverse stock split. Accordingly, all share and per share amounts for all periods presented in these financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect the reverse stock split and adjustment of the preferred share conversion ratios and exercise price of each outstanding option and warrant as if the transaction had occurred as of the beginning of the earliest period presented. Initial Public Offering The registration statement on Form S-1 for the Company’s initial public offering was declared effective on November 12, 2015. On November 17, 2015, the Company consummated the public offering of 5,000,000 shares of common stock at $5.00 per share and received from the underwriters net proceeds of $23.23 million (net of underwriters’ discount of $ 1.75 million and underwriter offering expenses of $0.02 million). The Company incurred additional underwriting expenses of approximately $1.46 million, yielding net proceeds from the initial public offering of approximately $21.76 million.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Dec. 31, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	NOTE 12 - STOCK-BASED COMPENSATION In November 1999, the Company’s Board of Directors approved the adoption of a stock option plan (the “1999 Stock Option Plan”), which, as amended through July 31, 2007, authorized the grant of options to purchase up to 929,750 shares of the Company’s common stock. The 1999 Stock Option Plan expired on December 31, 2010, and options will no longer be granted under the 1999 Stock Option Plan. However, if outstanding options granted under the 1999 Stock Option plan expire or are terminated or canceled without having been exercised, such options shall automatically be placed into the stock option pool under the 2011 Stock Option Plan. Options under the 1999 Stock Option Plan had a ten-year term and generally vested over four years or over various terms based on Board of Directors approval from the date of grant. In September 2011, the Company’s Board of Directors approved the adoption of a new stock option plan (the “2011 Stock Option Plan”), which, authorized the grant of options to purchase up to 615,385 shares of the Company’s common stock. The 2011 Stock Option Plan provides for the granting of options and issuance of shares to eligible employees, consultants, and members of the Board of Directors to purchase the Company’s common stock at an exercise price not less than the par value, and, in the case of incentive options, not less than 100% of the fair market value per share on the date of grant as determined by the Board of Directors. The plan was terminated on November 17, 2015 and options will no longer be granted under the 2011 Stock option Plan. However, if outstanding options granted under the 1999 Stock Option Plan or the 2011 Stock Option Plan expire or are terminated or canceled without having been exercised, such options shall automatically be placed in the stock option pool under the 2015 Equity Incentive Plan. All options granted to employees under the 2011 Stock Option Plan are exercisable prior to vesting, subject to a right of repurchase by the Company at the original exercise price for all unvested shares. Once the optionee vests in the shares underlying the options and until certain events occur, the Company has a right of first refusal to repurchase these shares at fair value after the individual has received a bona fide third-party offer with respect to those vested shares. Options under the 2011 Stock Option Plan have a ten-year term and generally vest over four years or over various terms based on Board of Directors approval from the date of grant. In October 2015, the Company’s Board of Directors approved the adoption of a new equity incentive plan (the “2015 Equity Incentive Plan”), which authorized the grant of awards for up to 3,000,000 shares of the Company’s common stock. The 2015 Equity Incentive Plan provides for the granting of equity awards including options, stock appreciation rights (SAR), restricted stock purchase rights, restricted stock bonuses, restricted stock units, performance shares, performance units, and other stock based awards to eligible employees, consultants and members of the Board of Directors. Subject to certain restrictions, the Compensation Committee of the Board of Directors has broad discretion to establish the terms and conditions for awards under 2015 Equity Incentive Plan, including the number of shares, vesting conditions, and the required service or performance criteria. Options and SARs have a maximum term of ten years, and their exercise price may not be less than 100% of fair market value on the date of grant. Under certain change in control transactions the Compensation Committee has the authority to accelerate vesting of awards. NOTE 12 - STOCK-BASED COMPENSATION — Continued The 2015 Equity Incentive Plan has a provision for the annual increase in the maximum number of shares issuable under the plan. On January 1 of each year, the shares available under the plan shall be cumulatively increased by a number of shares equal to the lesser of i) 3.5% of the number of shares of common stock issued and outstanding on the immediately preceding December 31 or ii) an amount determined by the Company’s Board of Directors. As of December 31, 2015, the total shares authorized for issuance under the 2015 Plan was 3,158,511. Stock Options There were no stock options granted during the three months ended December 31, 2015 and 2014. A summary of changes in stock options outstanding is as follows: Weighted Weighted Average Average Grant Remaining Aggregate Number of Price in Contractual Intrinsic Options $ Term Value (In whole shares) (In years) (in $ thousands) Outstanding at September 30, 2015 836,767 1.82 5.3 2,830 Granted — — Exercised (4,226 ) — Forfeited/cancelled — — Expired/cancelled — — Outstanding at December 31, 2015 832,541 1.83 5.0 2,220 Vested options exercisable at December 31, 2015 815,363 1.86 5.0 2,151 Unvested options exercisable at December 31, 2015 17,178 0.45 7.4 70 At December 31, 2015, 3,092,742 shares remain available for grant under the 2015 Equity Incentive Plan. The aggregate intrinsic value of the Company’s stock options exercised during the three months ended December 2015 and 2014 were $0.02 million and $0.0 million, respectively. The Company did not grant any stock options during the first three months of fiscal 2015 or 2014. During the three months ended December 31, 2015 and 2014, the Company recognized compensation expense of $0.00 million and $0.01, respectively, for stock options. At December 31, 2015, there was $0.01 million of unrecognized compensation expense related to stock options, excluding estimated forfeitures, which is expected to be recognized over a weighted-average period of 1.2 years. Net cash proceeds from the exercise of stock options were $0.00 million and $0.00 million during the three months ended December 2015 and 2014, respectively. The Company realized no tax benefits from those exercises. Restricted Stock Units A restricted stock unit is a stock award that entitles the holder to receive shares of the Company’s common stock as the unit vests. The Company’s outstanding restricted stock unit awards are subject to service-based vesting conditions. Awards subject to service-based vesting conditions typically vest in increments over a three or four year period or on a specific date as determined by the Compensation Committee. NOTE 12 - STOCK-BASED COMPENSATION — Continued The following table is a summary of the Company’s restricted stock unit activity for the period indicated, with the aggregate fair value of the balance outstanding at the end of each period, based on the Company’s closing stock price on the last trading day of the relevant period. Weighted Average Grant Date Restricted Fair Value Aggregate Stock Units Per Share Fair Value (In whole shares) (in thousands) Balance at September 30, 2015 — $ — $ — Granted 65,769 $ 4.66 $ 306.00 Vested — Forfeited or cancelled — Balance at December 31, 2015 65,769 $ 4.66 $ 296.00 The fair value of each restricted stock unit aware is based on the closing price on the date of grant. Share-based expense for service-based restricted stock unit awards is recognized, net of estimated forfeitures, ratably over the vesting period on a straight-line basis. During the three months ended December 31, 2015 and 2014, the Company recognized compensation expense of $0.05 million and $0.0 million, respectively, for restricted stock units. At December 31, 2015 there was $0.26 million of unrecognized compensation expense, excluding estimated forfeitures, which is expected to be recognized over a weighted-average period of 0.3 years. Because share-based compensation expense is recognized only for those awards that are ultimately expected to vest, the amount of share-based compensation recognized reflects a reduction for estimated forfeitures. The Company estimates forfeitures at the time of grant and revises those estimates in subsequent periods based upon new or changed information.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Dec. 31, 2015
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 13 - COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases multiple office spaces under non-cancellable operating leases which escalate annually and expire from fiscal years 2017 to 2022. Rental expense for the three months ended December 2015 and 2014 totaled $0.17 million and $0.16 million, respectively. Capital leases The Company leases computer equipment under capital leases that include a $1 purchase option as the end of the lease term. The lease terms range from 36 months to 60 months with interest rates ranging from 6% to 8%. The current and non-current amounts of the present value of net minimum lease payments are $0.1 million and $0.3 million, respectively Purchase Commitments The Company purchases components from a variety of suppliers and uses contract manufacturers to provide manufacturing services for its products. During the normal course of business, in order to manage manufacturing lead times and to help assure adequate component supply, the Company enters into agreements with contract manufacturers and suppliers that allow them to produce and procure inventory based upon forecasted requirements provided by the Company. If the Company does not meet these specified purchase commitments, it could be required to purchase the inventory. As of December 31, 2015, the maximum potential payment under these commitments totaled approximately $8.6 million which approximates fair value.

Credit Concentration and Signif

Credit Concentration and Significant Customers	3 Months Ended
	Dec. 31, 2015
Risks And Uncertainties [Abstract]
Credit Concentration and Significant Customers	NOTE 14 - CREDIT CONCENTRATION AND SIGNIFICANT CUSTOMERS At December 31, 2015 and September 30, 2015, two and three customers accounted for 77.9% and 82.6% of total accounts receivable, respectively. During the three months ended December 2015 and 2014, three customers accounted for 81.3% and 80.8% of total revenues, respectively. A significant portion of the Company’s purchases are from three suppliers. During the three months ended December 2015 and 2014, material purchases from these suppliers accounted for 79.3% and 79.5% of total material purchases, respectively. The Company does not anticipate any changes in the relationship with these suppliers; however, if such a change were to occur, the Company has alternative sources of materials available.

Legal Proceedings

Legal Proceedings	3 Months Ended
	Dec. 31, 2015
Commitments And Contingencies Disclosure [Abstract]
Legal Proceedings	NOTE 15 - LEGAL PROCEEDINGS In March 2015, Sycamore IP Holdings, LLC, or Sycamore, which the Company believes is a non-practicing entity, filed a lawsuit against us in the United States District Court for the Eastern District of Texas. In the lawsuit, Sycamore alleges the Company’s Nu-Wave Optima platform and related products infringe U.S. patent 6,952,405 B2 and is seeking injunctive relief, damages and costs. Sycamore has asserted similar claims against numerous other companies, including Adva Optical Networking Incorporated, Ericsson, EXFO Incorporated, JDS Uniphase Corporation, Menara Networks, Inc. and RAD Data Communications. The Company disputes any allegations of wrongdoing and intends to defend itself vigorously in this matter. The Company is subject to various legal proceedings, claims and litigation arising in the ordinary course of business. While the outcome of these matters is currently not determinable, the Company does not expect that the ultimate costs to resolve these matters will have a material effect on its results of operations, financial position or cash flows.

Segment Information

Segment Information	3 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Segment Information	NOTE 16 - SEGMENT INFORMATION Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the Company’s chief executive officer. The Company’s chief executive officer reviews financial information presented on a consolidated basis, accompanied by information about project revenue by geographic region for purposes of allocating resources and evaluating financial performance. The Company has one business activity, and there are no segment managers who are held accountable for operations, operating results and plans for levels or components below the consolidated unit level. The Company projects are obtained primarily through a competitive bid or negotiated contract process. These projects have similar cost structures, including labor, equipment and materials. The Company executes its projects in a similar fashion with a centralized estimating, project controls and management group, and the risks and rewards of project performance are not affected by the location of a specific project but on the Company’s ability to compete on pricing and execute within its estimated costs. The Company has the same types of customers with similar funding drivers and market demands across its business. The Company’s customer base includes telecommunications service providers, content service providers, enterprises and government entities worldwide. The Company considers the funding availability to be similar across its business, which is driven by the demand for bandwidth from its customer base. Accordingly, the Company is considered to be in a single reporting segment and operating unit structure. Revenue by geographic region is based on the shipping address of the customer. The following table sets forth revenue by geographic region and long-lived assets by geographic region (in thousands ) Revenue by Geographic Region Three months ended December 31, 2015 2014 Americas $ 8,730 $ 12,577 Europe Middle East and Africa (EMEA) 3,839 351 Asia Pacific (APAC) 61 437 Total revenue $ 12,630 $ 13,365 Property and equipment, net As of December 31, As of September 30, 2015 2015 (In thousands) Americas $ 2,898 $ 2,968 EMEA 372 431 APAC — — Total property and equipment, net $ 3,270 $ 3,399

Loss Per Share

Loss Per Share	3 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Loss Per Share	NOTE 17 – LOSS PER SHARE Basic net earnings (loss) per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net earnings (loss) per common share is computed using net loss and the weighted average number of common shares outstanding plus potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the assumed exercise of outstanding stock options, restricted common stock, warrants to purchase common and convertible preferred stock. NOTE 17 – LOSS PER SHARE — Continued The following table sets forth the computation of net income (loss) per common share – basic and diluted (in thousands, except share and per share amounts): Three months ended December 31, 2015 2014 Numerator Net loss $ (7,214 ) $ (3,244 ) Undeclared preferred stock dividend — (3,374 ) Loss attributable to common $ (7,214 ) $ (6,618 ) Denominator Basic weighted average common shares outstanding 10,183,075 1,814,630 Effect of dilutive securities — — Dilutive weighted average common shares outstanding 10,183,075 1,814,630 Net loss per share Basic $ (0.71 ) $ (3.65 ) Dilutive $ (0.71 ) $ (3.65 ) The number of shares outstanding used in the computation of basic and diluted net loss per share does not include the effect of the potentially outstanding common stock or the conversion of preferred stock and warrants to purchase preferred stock listed in the following table. The effects of these potentially outstanding shares were not included in the calculation of diluted net loss per share because their effect would have been anti-dilutive. Three months ended December 31, 2015 2014 Stock options outstanding 832,541 841,655 Restricted stock units 65,769 — Warrants to purchase C-3 convertible preferred stock * 983,607 983,607 Warrants to purchase D-3 convertible preferred stock * 769,231 — Series A-3 convertible preferred stock — 39,663,482 Series B-3 convertible preferred stock — 38,589,303 Series C-3 convertible preferred stock — 19,081,778 Series D-3 convertible preferred stock — 52,509,212 * Upon completion of the Company’s initial public offering in November 2015, warrants to purchase shares of the Company’s C-3 convertible preferred stock and D-3 convertible preferred stock were converted into warrants to purchase shares of the Company’s common stock.

Related Parties

Related Parties	3 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Related Parties	NOTE 18 – RELATED PARTIES Advance to Officer The Company had an outstanding advance to an officer of the company in the amount of $0.0 million and $0.099 million as of December 31, 2015 and September 30, 2015, respectively. The advance was not subject to interest, payable on demand and included in accounts receivable. Prior to December 31, 2015, the advance was repaid in full and no balance was outstanding at December 31, 2015.

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Consolidation	Consolidation The accompanying consolidated financial statements include the financial position and results of operations of Xtera and its wholly owned subsidiaries (collectively, the “Company”). All intercompany transactions and balances have been eliminated in consolidation.
Interim Consolidated Financial Information	Interim Consolidated Financial Information The accompanying interim consolidated financial statements and footnotes have been prepared by the Company, without audit, in accordance with generally accepted accounting principles in the United States of America, or GAAP, as contained in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or the Codification or ASU, for interim financial information, and with Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ deficit and cash flows. The results of operations for the three months ended December 31, 2015 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2015.
Use of Estimates	Use of Estimates The accompanying consolidated financial statements have been prepared with accounting principles generally accepted in the United States of America, which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the results of operations. Actual results could differ from those estimates. Significant estimates and assumptions relate to the net realizability of accounts receivable, the estimate for future warranty claims, impairments of goodwill, intangible assets and other long-lived assets, share-based compensation and inventory reserves.
Going Concern	Going-Concern As shown in the accompanying financial statements, the Company has recurring losses and negative cash flows from operations. As of September 30, 2015, the Company’s current liabilities exceeded its current assets by $4.7 million. These factors raise substantial doubt about the company’s ability to continue as a going concern. The Company has funded its operations through a combination of bank debt, draws on line of credit and sale of common stock. During the three months ended December 31, 2015, the Company closed an initial public offering that raised net proceeds of $21.76 million. Additionally, the Company continues to invest in new product solutions including focus on additional turnkey projects. Management believes this investment will allow the company to attract new customers and leverage relationships with existing customers resulting in improved operating margins and cash flows from operations. To fund this investment, we continue to explore opportunities to improve our working capital position and believe our plans mitigate the substantial doubt about the entity’s ability to continue as a going concern as of December 31, 2015. Accordingly, the accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
Foreign Currency Translation and Transactions	Foreign Currency Translation and Transactions The functional currency for the Company’s foreign subsidiaries is the local currency in which the entity is located. The financial statements of all subsidiaries with a functional currency other than the United States Dollar (“U.S. Dollar”) have been translated into U.S. Dollars. All assets and liabilities of foreign operations are translated into U.S. Dollars using year-end exchange rates, and the statement of operations is translated at average exchange rates during the respective period. The U.S. Dollar results that arise from such translation, as well as exchange gains and losses on intercompany balances of a long-term investment nature, are included in the cumulative currency translation adjustments in accumulated other comprehensive loss in stockholders’ equity. For all non-functional currency account balances, the re-measurement of such balances to the functional currency will result in either a foreign exchange transaction gain or loss which is recorded in Foreign exchange gain (loss) in the same period that the re-measurement occurred.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash deposits in banks and highly-liquid investments with original maturities of three months or less. Xtera places its temporary cash investments with high credit quality financial institutions. The majority of cash deposits and temporary cash investments are not covered by available depository insurance. The Company has not experienced any losses in such accounts.
Restricted Cash	Restricted Cash Restricted cash represents money market funds held by certain banks. Balances are classified between current and non-current assets based on the expiration dates of the performance bond agreements. At December 31, 2015, restricted cash of $3.8 million is collateral for various performance bonds in various geographical locations. In each case the cash is held in custody by the issuing bank and is restricted to withdrawal or use.
Accounts Receivable	Accounts Receivable Accounts receivable, representing amounts due from customers, are generally unsecured and are stated at the amount the Company expects to collect. Interest is generally not charged on overdue receivables. Unbilled receivables represent revenue amounts earned for which the appropriate revenue criteria have been met, but have not yet been billed because of contractual payment terms. The Company estimates an allowance for doubtful accounts based on the creditworthiness of its customers as well as general economic considerations. If a customer's financial condition changes, the Company may be required to record an additional allowance for doubtful accounts for that customer, which could negatively affect its results of operations. All receivables recorded for the three months ended December 31, 2015 and 2014 are fully collectible, and accordingly, no allowance has been recorded.
Inventories	Inventories Inventories consist of component materials and finished goods, which are valued at the lower of cost or market. The cost of inventories is determined using the first-in, first-out method. Market value is based upon an estimated selling price reduced by the estimated cost of disposal. The determination of market value involves numerous judgments including estimated average selling prices based on recent sales volumes, industry trends, existing customer orders, current contract price, future demand and pricing for its products and technological obsolescence of the Company’s products. Inventory that is obsolete or in excess of the Company’s forecasted demand or is anticipated to be sold at a loss is written down to its estimated net realizable value based on historical usage and expected demand and included in cost of revenues. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. The Company recorded a provision for inventory obsolescence of approximately $1.1 million and $0.6 million for the three months ended 2015 and 2014, respectively.
Impairment of Long-Lived Assets Other Than Goodwill	Impairment of Long-Lived Assets Other Than Goodwill Long-lived assets include property and equipment and intangible assets. The Company evaluates the recoverability of long-lived assets whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. Such circumstances could include, but are not limited to (1) a significant decrease in the market value of an asset, (2) a significant adverse change in the extent or manner in which an asset is used, (3) an accumulation of costs significantly in excess of the amount originally expected for the acquisition of an asset, or (4) current period operating or cash flow loss combined with previous losses or projected future losses. The Company measures the carrying amount of the asset against the estimated undiscounted future cash flows associated with it. Should the sum of the expected future undiscounted net cash flows be less than the carrying value of the asset being evaluated, an impairment loss would be recognized. The impairment loss would be calculated as the amount by which the carrying value of the asset exceeds its fair value. The fair value is measured based on discounted value of estimated future cash flows. The evaluation of asset impairment requires the Company to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. There were no impairments of long-lived assets during the three months ended December 31, 2015 and 2014. Estimated weighted average amortization periods for customer related intangibles and developed technology are 6.4 years and 15.4 years, respectively.
Revenue Recognition	Revenue Recognition Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collection is reasonably assured. Customer purchase agreements and customer purchase orders are generally used to determine the existence of an arrangement. Delivery does not occur until products have been shipped or services have been provided to the customer and title and risk of loss have transferred to the customer. The Company assesses whether the priced is fixed and determinable based on the payment term associated with the transaction and whether the sales price is subject to refund or adjustment. Collectability is assessed primarily on the creditworthiness of the customer as determined by the Company as well as the customer’s payment history. Revenue for maintenance services is deferred and recognized ratably over the period during which the services are performed up to three years. Shipping charges billed to customers are included in revenue. The related shipping costs are included in cost of revenue. The Company also provides for estimated costs that may be incurred for product warranties and for sales returns. When other significant obligations or acceptance terms remain after products are delivered, revenue is recognized only after such obligations are fulfilled. Revenue is recognized net of cash discounts and sales tax. Contracts for optical network solutions often involve multiple deliverables which may include any combination of products or services. A typical optical network solution will include a combination of hardware, software and turnkey solutions as well as installation services and training. Revenue under multiple element arrangements is separated into more than one unit of accounting if all of the following criteria are met: · The delivered item(s) has value to the client on a stand-alone basis; · If the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the company. The Company allocates revenue to each element in its multiple element arrangement based upon their relative selling prices. The Company determines the selling prices for each deliverable based on a selling price hierarchy. The selling price for each deliverable is based on vendor-specific objective evidence (“VSOE”) if available, third-party evidence (“TPE”) if VSOE is not available, or the Company’s best estimated selling price (“BESP”) if neither VSOE nor TPE are available. The relative selling price method allocates any discount in the arrangement proportionately to each deliverable on the basis of the deliverable’s estimated fair value. The Company limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations, or subject to customer-specific return or refund privileges. VSOE of selling price is used in the selling price allocation where it exists. However, in most instances, VSOE is unavailable for the Company’s products because the product solution delivered differs for each customer. Further, a substantial majority of the selling prices of each deliverable in the Company’s product solution offerings has not been consistent, and does not fall within a reasonable narrow pricing range. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued The Company’s product solutions contain significant elements of proprietary technology and the solution offered differs substantially from that of the competitors. Also, the Company’s product offerings contain a significant level of configuration unique to a specific customer installation and network which will not generally be interchangeable with a third party product solution. Furthermore, the Company is unable to legally and reliably determine what similar competitor products’ selling prices are on a standalone basis. Therefore, it is typically difficult to obtain the reliable standalone competitive pricing necessary to establish TPE. In instances where established VSOE or reliable TPE is unavailable for the Company products, the Company uses BESP in its allocation of arrangement consideration. VSOE is unavailable for the Company products because the product solution delivered differs for each customer. In addition, reliable TPE does not exist because the Company’s product solution is configured to comply with a pre-defined set of customer specific criteria which largely will not be interchangeable with a third party product solution. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The Company determines BESP for a product or service by considering multiple factors including, but not limited to, cost of production, market conditions, competitive landscape, gross margin objectives, pricing practices, geographies, customer classes and distribution channels. The Company applies the percentage-of-completion method to long-term arrangements where it is required to undertake significant production, customization or modification engineering, and reasonable and reliable estimates of revenue and cost are available. Utilizing the percentage-of-completion method, the Company recognizes revenue based on the ratio of actual costs incurred to date to total estimated costs expected to be incurred. In instances that do not meet the percentage-of-completion method criteria, recognition of revenue is deferred until there are no uncertainties regarding customer acceptance. Unbilled percentage-of-completion revenues recognized are included in unbilled receivables. Billings in excess of revenues recognized on these contracts are recorded within deferred revenue. The percentage of revenue recognized using the percentage-of-completion method for the three months ended December 31, 2015 and 2014 were 63.6% and 0.0%, respectively. The Company’s primary service offerings include services, installation and deployment services, on-site hardware replacement services, system maintenance services, extended hardware warranty services and training across a broad spectrum of products within the optical networking industry. These services are provided on a time-and-materials basis or as a fixed-price contract with contract terms ranging up to three years. Revenue from time-and-material contracts is recognized as labor hours are delivered and direct expenses are incurred. Revenue from fixed price system maintenance and extended warranty contracts is recognized on a straight-line basis over the delivery period. Installation revenue is generally recognized once installation is complete. Deferred revenue is recorded when cash has been received from the customer and the arrangement does not qualify for revenue recognition under the revenue recognition policies described above. Costs incurred for projects not completed are deferred and recorded as a cost upon recognition of the related revenue.
Computation of Net Income (Loss) per Share	Computation of Net Income (Loss) per Share The Company calculates basic earnings per share ("EPS") by dividing earnings attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted EPS includes other potential dilutive shares that would be outstanding if securities or other contracts to issue common stock were exercised or converted into common stock. A reconciliation of the numerator and denominator used for the basic and diluted EPS computations is set forth in Note 17 below.
Share-Based Compensation	Share-Based Compensation Share-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period (generally the vesting period) under the straight-line amortization method. The Company estimates the fair value of the stock options granted using the Black-Scholes option pricing model which requires a number of estimates and assumptions in determining share-based compensation related to options. Inherent in this model are assumptions related to the fair value of the common stock, stock-price volatility, option life, risk-free interest rate and dividend yield. While the risk-free interest rate and dividend yield are less subjective assumptions, typically based on factual data, the expected stock-price volatility and option life assumptions require a greater level of judgment. The Company has not and does not anticipate distributing dividends to stockholders and accordingly uses a 0% dividend yield assumption for all Black-Scholes option pricing calculations. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued The Company uses an expected stock-price volatility assumption that is primarily based on comparable stock of public companies. With regard to the weighted-average option life assumption, the Company evaluates the exercise behavior of past grants as a basis to predict future activity. The amount of stock based compensation expense is net of an estimated forfeiture rate, which is also based on historical data. The Company recognizes the estimated fair value of restricted stock units, net of estimated forfeitures, as share-based expense over the service period. The Company uses the straight-line method to record expense for share-based awards with service-based vesting.
Income Taxes	Income Taxes The Company’s income taxes are accounted for in accordance with the asset and liability method of accounting for income taxes. Under the asset and liability method, a deferred tax asset or liability is recognized for estimated future tax effects attributable to temporary differences and carryforwards. The measurement of deferred income tax assets is adjusted by a valuation allowance, if necessary, to recognize future tax benefits only to the extent, based on available evidence, it is more likely than not such benefit will be realized. Income tax expense or benefit is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. Tax positions are recognized only when it is more likely than not (likelihood of greater than 50%), based on technical merits, that the positions will be sustained upon examination. Tax positions that meet the more-likely-than-not threshold are measured using a probability weighted approach as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. Whether the more-likely-than-not recognition threshold is met for a tax position is a matter of judgment based on the individual facts and circumstances of that position evaluated in light of all available evidence. The Company recognizes interest and penalties related to uncertain tax positions in operating expenses.
Sales Taxes	Sales Taxes The Company is required by the applicable governmental authorities to collect and remit sales taxes. Accordingly, such amounts are charged to the customer, collected and remitted directly to the appropriate jurisdictional entity. The Company reports revenue net of any taxes collected from customers and remitted to the relevant government authority.
Warranty Reserve	Warranty Reserve The Company provides a limited one to five year warranty on its products and accrues for estimated future warranty costs in the period in which revenue is recognized. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The following table reflects the changes in the Company’s warranty reserve: Three Months Ended December 31, 2015 Three Months Ended December 31, 2014 (In thousands) Warranty reserve, beginning of period $ 1,735 $ 978 Provision 230 215 Claims (29 ) (74 ) Warranty reserve, end of period $ 1,936 $ 1,119
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying value of financial instruments reported in the accompanying consolidated balance sheets for cash, cash equivalents, accounts receivable, accounts payable, and accrued expenses payable and other liabilities, approximate fair value due to the immediate or short-term nature or maturity of these financial instruments. The carrying amount for the Company’s credit facility approximates fair value due to the short-term nature of the facilities as well as the use of variable interest rates that adjust periodically.

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Summary of Changes in Warranty Reserve	The following table reflects the changes in the Company’s warranty reserve: Three Months Ended December 31, 2015 Three Months Ended December 31, 2014 (In thousands) Warranty reserve, beginning of period $ 1,735 $ 978 Provision 230 215 Claims (29 ) (74 ) Warranty reserve, end of period $ 1,936 $ 1,119

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consist of the following: As of December 31, As of September 30, 2015 2015 (In thousands) Component materials $ 8,031 $ 6,442 Finished goods 14,212 15,062 22,243 21,504 Inventory reserves (11,305 ) (10,964 ) Net inventories $ 10,938 $ 10,540
Schedule of Changes in Inventory Reserve	The following table reflects the changes in the Company’s inventory reserve: Three Months Ended December 31, Three Months Ended December 31, 2015 2014 (In thousands) Inventory reserve, beginning of period $ 10,964 $ 9,857 Provision - continuing operations 1,134 602 Write-offs (793 ) (247 ) Inventory reserve, end of period $ 11,305 $ 10,212

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Dec. 31, 2015
Property Plant And Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consists of the following: As of December 31, As of September 30, 2015 2015 (In thousands) Computer software $ 2,526 $ 2,509 Fixtures and equipment 25,737 25,575 Leasehold improvements 1,112 1,672 29,375 29,756 Accumulated depreciation and amortization (26,105 ) (26,357 ) Property and equipment, net $ 3,270 $ 3,399

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Dec. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	As of the dates indicated, intangible assets are comprised of the following (in thousands): As of December 31, 2015 As of September 30, 2015 Gross Intangible Accumulated Amortization Net Intangible Gross Intangible Accumulated Amortization Net Intangible Customer related intangible assets $ 2,796 $ 2,796 $ — $ 2,796 $ 2,796 $ — Developed technology 15,838 8,554 7,284 15,838 7,554 8,284 Total intangible assets $ 18,634 $ 11,350 $ 7,284 $ 18,634 $ 10,350 $ 8,284

Debt (Tables)

Debt (Tables)	3 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Schedule of Long-Term Debt	Long-term debt consists of the following: As of December 31, As of September 30, 2015 2015 (In thousands) Term loan $ 5,312 $ 6,129 Line of credit 5,989 6,711 11,301 12,840 Less current maturities (11,301 ) (10,707 ) Total long-term debt $ — $ 2,133
Schedule of Debt Obligations for Future Years	The debt obligations for future fiscal years are as follows: As of December 31, 2015 (In thousands) Remainder of 2016 $ 9,169 2017 2,132 11,301 Less current maturities (11,301 ) Total long-term debt $ —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Schedule of Financial Assets at Fair Value	The following table presents financial assets at December 31, 2015 for which the Company measures fair value on a recurring basis, by level, within the fair value hierarchy (in thousands): Asset Level 1 Level 2 Level 3 Total Money market funds $ 3,694 $ — $ — $ 3,694 Government securities 109 — — 109 Total assets $ 3,803 $ — $ — $ 3,803 Amounts included in: Restricted cash $ 3,803 $ — $ — $ 3,803 Total $ 3,803 $ — $ — $ 3,803 The following table presents financial assets at September 30, 2015 for which the Company measures fair value on a recurring basis, by level, within the fair value hierarchy (in thousands): Asset Level 1 Level 2 Level 3 Total Money market funds $ 1,160 $ — $ — $ 1,160 Government securities 112 — — 112 Total assets $ 1,272 $ — $ — $ 1,272 Amounts included in: Restricted cash $ 1,272 $ — $ — $ 1,272 Total $ 1,272 $ — $ — $ 1,272

Income taxes (Tables)

Income taxes (Tables)	3 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of Geographic Breakdown of the Provision for Income Taxes	The following is a geographic breakdown of the provision for income taxes (in thousands): Three Months Ended December 31, 2015 2014 Domestic $ — $ — Foreign 1 15 Total $ 1 $ 15

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Summary of Number of Shares Issued and Outstanding	Number of shares issued and outstanding (in whole shares): Preferred Preferred Preferred Preferred Preferred Shares Shares Shares Shares Shares Convertible Convertible Convertible Convertible Convertible Common Series A-3 Series B-3 Series C-3 Series D-3 Series E-3 Stock As of September 30, 2014 39,663,482 38,589,303 19,081,778 52,509,212 — 1,814,630 Issuance of Preferred stock — — — — 114,679,639 — Exercise of warrants — — — — — 119,881 Exercise of stock options — — — — — 1,545 As of September 30, 2015 39,663,482 38,589,303 19,081,778 52,509,212 114,679,639 1,936,056 Conversion of preferred stock to common stock (39,663,482 ) (38,589,303 ) (19,081,778 ) (52,509,212 ) (114,679,639 ) 10,174,082 Issuance of common stock — — — — — 5,000,000 Exercise of stock options — — — — — 4,226 As of December 31, 2015 — — — — — 17,114,364

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Dec. 31, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of Weighted Average Assumptions Using Black-Scholes Method	Stock Options There were no stock options granted during the three months ended December 31, 2015 and 2014.
Summary of Stock Option Activity	A summary of changes in stock options outstanding is as follows: Weighted Weighted Average Average Grant Remaining Aggregate Number of Price in Contractual Intrinsic Options $ Term Value (In whole shares) (In years) (in $ thousands) Outstanding at September 30, 2015 836,767 1.82 5.3 2,830 Granted — — Exercised (4,226 ) — Forfeited/cancelled — — Expired/cancelled — — Outstanding at December 31, 2015 832,541 1.83 5.0 2,220 Vested options exercisable at December 31, 2015 815,363 1.86 5.0 2,151 Unvested options exercisable at December 31, 2015 17,178 0.45 7.4 70
Summary of Restricted Stock Units Activity	NOTE 12 - STOCK-BASED COMPENSATION — Continued The following table is a summary of the Company’s restricted stock unit activity for the period indicated, with the aggregate fair value of the balance outstanding at the end of each period, based on the Company’s closing stock price on the last trading day of the relevant period. Weighted Average Grant Date Restricted Fair Value Aggregate Stock Units Per Share Fair Value (In whole shares) (in thousands) Balance at September 30, 2015 — $ — $ — Granted 65,769 $ 4.66 $ 306.00 Vested — Forfeited or cancelled — Balance at December 31, 2015 65,769 $ 4.66 $ 296.00

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Summary of Revenue and Long-Lived Assets by Geographic Region	Revenue by Geographic Region Three months ended December 31, 2015 2014 Americas $ 8,730 $ 12,577 Europe Middle East and Africa (EMEA) 3,839 351 Asia Pacific (APAC) 61 437 Total revenue $ 12,630 $ 13,365
Schedule of Property, and Equipment, Net	Property and equipment, net As of December 31, As of September 30, 2015 2015 (In thousands) Americas $ 2,898 $ 2,968 EMEA 372 431 APAC — — Total property and equipment, net $ 3,270 $ 3,399

Loss Per Share (Tables)

Loss Per Share (Tables)	3 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Computation of Net Income (Loss) Per Common Share Basic and Diluted	NOTE 17 – LOSS PER SHARE — Continued The following table sets forth the computation of net income (loss) per common share – basic and diluted (in thousands, except share and per share amounts): Three months ended December 31, 2015 2014 Numerator Net loss $ (7,214 ) $ (3,244 ) Undeclared preferred stock dividend — (3,374 ) Loss attributable to common $ (7,214 ) $ (6,618 ) Denominator Basic weighted average common shares outstanding 10,183,075 1,814,630 Effect of dilutive securities — — Dilutive weighted average common shares outstanding 10,183,075 1,814,630 Net loss per share Basic $ (0.71 ) $ (3.65 ) Dilutive $ (0.71 ) $ (3.65 )
Antidilutive Shares Excluded from Computation of Diluted Net Income (Loss) Per Share	The number of shares outstanding used in the computation of basic and diluted net loss per share does not include the effect of the potentially outstanding common stock or the conversion of preferred stock and warrants to purchase preferred stock listed in the following table. The effects of these potentially outstanding shares were not included in the calculation of diluted net loss per share because their effect would have been anti-dilutive. Three months ended December 31, 2015 2014 Stock options outstanding 832,541 841,655 Restricted stock units 65,769 — Warrants to purchase C-3 convertible preferred stock * 983,607 983,607 Warrants to purchase D-3 convertible preferred stock * 769,231 — Series A-3 convertible preferred stock — 39,663,482 Series B-3 convertible preferred stock — 38,589,303 Series C-3 convertible preferred stock — 19,081,778 Series D-3 convertible preferred stock — 52,509,212 * Upon completion of the Company’s initial public offering in November 2015, warrants to purchase shares of the Company’s C-3 convertible preferred stock and D-3 convertible preferred stock were converted into warrants to purchase shares of the Company’s common stock.

Summary of Significant Accoun38

Summary of Significant Accounting Polices - Additional Information (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Significant Accounting Policies [Line Items]
Provision for inventory obsolescence	$ 1,134,000	$ 602,000
Current liabilities exceeded its current assets			$ 4,700,000
Proceeds from issuance initial public offering	21,760,000
Restricted cash	3,800,000
Allowance for collectible receivable	$ 0	$ 0
Percentage of revenue recognized using percent-of-completion method	63.60%	0.00%
Service contract maximum period	3 years
Dividend yield	0.00%
Maximum
Significant Accounting Policies [Line Items]
Revenue for maintenance services period	3 years
Product warranty period	5 years
Minimum
Significant Accounting Policies [Line Items]
Tax position recognized, likelihood percentage	50.00%
Tax benefit, likelihood percentage	50.00%
Product warranty period	1 year

Summary of Significant Accoun39

Summary of Significant Accounting Polices - Summary of Changes in Warranty Reserve (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Warranty reserve, beginning of period	$ 1,735	$ 978
Provision	230	215
Claims	(29)	(74)
Warranty reserve, end of period	$ 1,936	$ 1,119

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Inventory Disclosure [Abstract]
Component materials	$ 8,031	$ 6,442
Finished goods	14,212	15,062
Inventory, Gross	22,243	21,504
Inventory reserves	(11,305)	(10,964)	$ (10,212)	$ (9,857)
Net inventories	$ 10,938	$ 10,540

Inventories - Schedule of Chang

Inventories - Schedule of Changes in Inventory Reserve (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Inventory reserve, beginning of period	$ 10,964	$ 9,857
Provision - continuing operations	1,134	602
Write-offs	(793)	(247)
Inventory reserve, end of period	$ 11,305	$ 10,212

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Property Plant And Equipment [Line Items]
Property plant and equipment, gross	$ 29,375	$ 29,756
Accumulated depreciation and amortization	(26,105)	(26,357)
Property and equipment, net	3,270	3,399
Computer Software
Property Plant And Equipment [Line Items]
Property plant and equipment, gross	2,526	2,509
Fixtures and Equipment
Property Plant And Equipment [Line Items]
Property plant and equipment, gross	25,737	25,575
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property plant and equipment, gross	$ 1,112	$ 1,672

Property and Equipment - Additi

Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Property Plant And Equipment [Line Items]
Depreciation and amortization of expense	$ 400	$ 400
Capital Lease
Property Plant And Equipment [Line Items]
Fixtures and equipment lease	380		$ 380
Depreciation expense on property lease	$ 10	$ 0

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Indefinite Lived Intangible Assets By Major Class [Line Items]
Gross asset value	$ 18,634	$ 18,634
Accumulated amortization	11,350	10,350
Intangible assets net	7,284	8,284
Customer Related Intangible Assets
Indefinite Lived Intangible Assets By Major Class [Line Items]
Gross asset value	2,796	2,796
Accumulated amortization	2,796	2,796
Developed Technology
Indefinite Lived Intangible Assets By Major Class [Line Items]
Gross asset value	15,838	15,838
Accumulated amortization	8,554	7,554
Intangible assets net	$ 7,284	$ 8,284

Intangible Assets - Additional

Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense	$ 0.3	$ 0.3

Debt - Schedule of Long-Term De

Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Debt Instrument [Line Items]
Long-term Debt	$ 11,301	$ 12,840
Less current maturities	(11,301)	(10,707)
Long-term debt less current portion		2,133
Term Loan
Debt Instrument [Line Items]
Long-term Debt	5,312	6,129
Line Of Credit
Debt Instrument [Line Items]
Long-term Debt	$ 5,989	$ 6,711

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	Dec. 27, 2011	May. 10, 2011	Jan. 31, 2015	Dec. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2013	Jun. 30, 2010
Debt Instrument [Line Items]
Long-term Debt					$ 11,301,000		$ 11,301,000	$ 12,840,000
Warrant expiration date							Nov. 17, 2020
Repayments of debt using proceeds from initial term loan		$ 2,000,000			$ 11,237,000	$ 4,612,000
Additional term loan	$ 2,000,000
Initial Public Offering
Debt Instrument [Line Items]
Warrants exercisable		37,832	29,586
Warrant
Debt Instrument [Line Items]
Additional term loan		$ 1,200,000
Initial Term Loan
Debt Instrument [Line Items]
Debt instrument, interest rate		11.50%
Debt instrument, maturity date		Dec. 1, 2014
Additional term loan		$ 8,800,000
Initial Term Loan | Maximum
Debt Instrument [Line Items]
Long-term Debt		10,000,000
Additional Term Loan
Debt Instrument [Line Items]
Additional term loan		$ 2,000,000
Warrant issued		983,607
Debt instrument, interest rate		11.50%
Debt instrument, maturity date		Jul. 1, 2015
Modified Term Loan
Debt Instrument [Line Items]
Debt instrument, interest rate					12.50%		12.50%
Debt instrument, maturity date					Dec. 31, 2016
Unamortized costs of warrants					$ 0
Loan outstanding amount					$ 5,300,000		$ 5,300,000
June 2010 Revolving Line of Credit Facility
Debt Instrument [Line Items]
Additional term loan										$ 7,500,000
Debt instrument, interest rate									4.25%
Line of credit facility, expiration date				Jan. 1, 2015
June 2010 Revolving Line of Credit Facility | Prime Rate Plus
Debt Instrument [Line Items]
Debt instrument, interest rate				3.25%
January 2015, Revolving Line of Credit Facility
Debt Instrument [Line Items]
Additional term loan			$ 12,500,000
Warrant issued					769,231		769,231
Debt instrument, interest rate			7.00%
Line of credit facility, expiration date					Jan. 15, 2016
Line of credit facility, extended expiration date					Apr. 15, 2016
Line of credit					$ 6,000,000		$ 6,000,000
Line of credit facility, remaining borrowing capacity					4,100,000		$ 4,100,000
Fair Value of Warrants					$ 300,000
January 2015, Revolving Line of Credit Facility | Prime Rate Plus
Debt Instrument [Line Items]
Debt instrument, interest rate			3.50%

Debt - Schedule of Debt Obligat

Debt - Schedule of Debt Obligations for Future Years (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Debt Disclosure [Abstract]
Remainder of 2016	$ 9,169
2,017	2,132
Long-term Debt	11,301
Less current maturities	(11,301)	$ (10,707)
Long-term debt less current portion		2,133
Long-term Debt	$ 11,301	$ 12,840

Employee Benefit Plan (Details)

Employee Benefit Plan (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Compensation And Retirement Disclosure [Abstract]
Employees minimum age to participate defined contribution plan	18 years
Maximum pretax contribution per employee	60.00%
Defined contribution plan, employer discretionary contribution amount	$ 0	$ 0

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Financial Assets at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Assets
Total assets	$ 3,803	$ 1,272
Total cash	3,803	1,272
Money Market Funds
Assets
Total assets	3,694	1,160
Government Securities
Assets
Total assets	109	112
Restricted Cash
Assets
Total cash	3,803	1,272
Level 1
Assets
Total assets	3,803	1,272
Total cash	3,803	1,272
Level 1 | Money Market Funds
Assets
Total assets	3,694	1,160
Level 1 | Government Securities
Assets
Total assets	109	112
Level 1 | Restricted Cash
Assets
Total cash	$ 3,803	$ 1,272

Income Taxes - Geographic Break

Income Taxes - Geographic Breakdown of the Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Line Items]
Provision for income taxes	$ 1	$ 15
Foreign [Member]
Income Tax Disclosure [Line Items]
Provision for income taxes	$ 1	$ 15

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Effective income taxes rate	(0.01%)	(0.08%)
Operating losses carry forward period	20 years
Operating loss carry forwards	$ 214
Operating loss, beginning expiration period	2,018

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Number of Shares Issued and Outstanding (Details) - shares	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
Class Of Stock [Line Items]
Exercise of stock options	4,226
Preferred Shares Convertible Series A-3
Class Of Stock [Line Items]
Balance (in shares)	39,663,482	39,663,482
Conversion of preferred stock to common stock	(39,663,482)
Balance (in shares)	0	39,663,482
Preferred Shares Convertible Series B-3
Class Of Stock [Line Items]
Balance (in shares)	38,589,303	38,589,303
Conversion of preferred stock to common stock	(38,589,303)
Balance (in shares)	0	38,589,303
Preferred Shares Convertible Series C-3
Class Of Stock [Line Items]
Balance (in shares)	19,081,778	19,081,778
Conversion of preferred stock to common stock	(19,081,778)
Balance (in shares)	0	19,081,778
Preferred Shares Convertible Series D-3
Class Of Stock [Line Items]
Balance (in shares)	52,509,212	52,509,212
Conversion of preferred stock to common stock	(52,509,212)
Balance (in shares)	0	52,509,212
Preferred Shares Convertible Series E-3
Class Of Stock [Line Items]
Balance (in shares)	114,679,639
Conversion of preferred stock to common stock	(114,679,639)
Issuance of stock	114,679,639	114,679,639
Balance (in shares)	0	114,679,639
Common Stock
Class Of Stock [Line Items]
Balance (in shares)	1,936,056	1,814,630
Conversion of preferred stock to common stock	10,174,082
Issuance of stock	5,000,000
Exercise of warrants		119,881
Exercise of stock options	4,226	1,545
Balance (in shares)	17,114,364	1,936,056

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares	Sep. 30, 2015$ / sharesshares	Sep. 30, 2014shares
Class Of Stock [Line Items]
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value | $ / shares	$ 0.001	$ 0.001
Proceeds from issuance initial public offering | $	$ 21,760
Initial Public Offering
Class Of Stock [Line Items]
Issuance of stock (in shares)	5,000,000
Common stock, par value | $ / shares	$ 5
Proceeds from underwriters net | $	$ 23,230
Underwriter's discount | $	1,750
Underwriter offering expenses | $	20
Additional underwriting expenses incurred | $	1,460
Proceeds from issuance initial public offering | $	$ 21,760
Common Stock
Class Of Stock [Line Items]
Conversion of preferred stock to common stock	10,174,082
Common stock terms of conversion	The Common Stock issued in connection with this conversion is subject to lock-up requirements for periods that expire May 10, 2016
Reverse stock split conversion ratio	0.0384
Issuance of stock (in shares)	5,000,000
Series A-2 Preferred Stock
Class Of Stock [Line Items]
Preferred stock, shares issued			0
Preferred stock, shares outstanding			0
Series B-2 Preferred Stock
Class Of Stock [Line Items]
Preferred stock, shares issued			0
Preferred stock, shares outstanding			0
Series C-2 Preferred Stock
Class Of Stock [Line Items]
Preferred stock, shares issued			0
Preferred stock, shares outstanding			0

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($)	1 Months Ended			3 Months Ended
	Oct. 31, 2015	Sep. 30, 2011	Nov. 30, 1999	Dec. 31, 2015	Dec. 31, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock authorized to be purchased				0	0
Dividend yield				0.00%
Aggregate intrinsic value of stock option exercised				$ 20,000	$ 0
Number of Options, Granted				0	0
Compensation expense recognized				$ 0	$ 10,000
Unrecognized compensation expense related to stock options				$ 10,000
Unrecognized compensation expense, weighted-average period of recognition				1 year 2 months 12 days
Net cash proceeds from stock options exercised				$ 0	0
Tax benefit realized from exercise of stock options				0	0
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Compensation expense recognized				$ 50,000	$ 0
Unrecognized compensation expense, weighted-average period of recognition				3 months 18 days
Unrecognized compensation expense related to restricted stock units				$ 260,000
Maximum | Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting term				4 years
Minimum | Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting term				3 years
1999 Stock Option Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award term (in years)			10 years
Award vesting term			4 years
1999 Stock Option Plan | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock authorized to be purchased			929,750
2011 Stock Option Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award term (in years)		10 years
Award vesting term		4 years
Percentage of fair market value per share on grant date		100.00%
Plan termination date		Nov. 17, 2015
2011 Stock Option Plan | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock authorized to be purchased		615,385
2015 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock authorized to be purchased				3,158,511
Award term (in years)	10 years
Percentage of fair market value per share on grant date	100.00%
Percentage of common stock issued and outstanding	3.50%
Remaining shares available for grants				3,092,742
2015 Equity Incentive Plan | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock authorized to be purchased	3,000,000

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Number of Options
Number of Options, Beginning balance	836,767
Number of Options, Granted	0		0
Number of Options, Exercised	(4,226)
Number of Options, Forfeited/cancelled	0
Number of Options, Expired/cancelled	0
Number of Options, Unvested options exercisable at end of year	17,178
Weighted Average Grant Price
Weighted Average Grant Price, Beginning balance	$ 1.82
Weighted Average Grant Price, Unvested options exercisable at end of year	$ 0.45
Weighted Average Remaining Contractual Term
Weighted Average Remaining Contractual Term, Beginning balance		5 years 3 months 18 days
Weighted Average Remaining Contractual Term, Unvested options exercisable at end of year	7 years 4 months 24 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value, Beginning balance	$ 2,830
Aggregate Intrinsic Value, Unvested options exercisable at end of year	$ 70

Stock-Based Compensation - Su57

Stock-Based Compensation - Summary of Restricted Stock Units Activity (Details) - Restricted Stock Units	3 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted Stock Units, Beginning balance	0
Restricted Stock Units, Granted	65,769
Restricted Stock Units, Vested	0
Restricted Stock Units, Forfeited/cancelled	0
Restricted Stock Units, Ending balance	65,769
Weighted Average Grant Date Fair Value Per Share, Granted | $ / shares	$ 4.66
Weighted Average Grant Date Fair Value Per Share, Ending balance | $ / shares	$ 4.66
Aggregate Fair Value, Granted | $	$ 306,000
Aggregate Fair Value, Ending balance | $	$ 296,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Commitments And Contingencies [Line Items]
Lease expiration year, minimum	2,017
Lease expiration year, maximum	2,022
Rental expense	$ 170,000	$ 160,000
Maximum
Commitments And Contingencies [Line Items]
Payments for purchase of commitment cost	8,600,000
Capital leases
Commitments And Contingencies [Line Items]
Computer equipment under capital lease, purchase option value	1
Minimum lease payments	$ 100,000	$ 300,000
Capital leases | Minimum
Commitments And Contingencies [Line Items]
Lease term	36 months
Interest rates	6.00%
Capital leases | Maximum
Commitments And Contingencies [Line Items]
Lease term	60 months
Interest rates	8.00%

Credit Concentration and Sign59

Credit Concentration and Significant Customers - Additional Information (Details)	3 Months Ended
	Dec. 31, 2015CustomerSupplier	Sep. 30, 2015Customer	Dec. 31, 2014CustomerSupplier
Customer Concentration Risk | Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, percentage	77.90%	82.60%
Number of customers accounted	2	3
Customer Concentration Risk | Revenue
Concentration Risk [Line Items]
Concentration risk, percentage	81.30%		80.80%
Number of customers accounted	3		3
Supplier Concentration Risk | Material Purchase
Concentration Risk [Line Items]
Concentration risk, percentage	79.30%		79.50%
Number of suppliers | Supplier	3		3

Segment Information - Summary o

Segment Information - Summary of Revenue and Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenue	$ 12,630	$ 13,365
Americas
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenue	8,730	12,577
Europe Middle East and Africa (EMEA)
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenue	3,839	351
Asia Pacific (APAC)
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenue	$ 61	$ 437

Segment Information - Schedule

Segment Information - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Geographic Information For Property Plant And Equipment [Line Items]
Property and equipment, net	$ 3,270	$ 3,399
Americas
Geographic Information For Property Plant And Equipment [Line Items]
Property and equipment, net	2,898	2,968
EMEA
Geographic Information For Property Plant And Equipment [Line Items]
Property and equipment, net	$ 372	$ 431

Loss Per Share - Computation of

Loss Per Share - Computation of Net Income Per Common Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Numerator
Net loss	$ (7,214)	$ (3,244)
Preferred dividend		(3,374)
Net loss available to common stockholders	$ (7,214)	$ (6,618)
Denominator
Basic weighted average common shares outstanding	10,183,075	1,814,630
Dilutive weighted average common shares outstanding	10,183,075	1,814,630
Net loss per share
Basic	$ (0.71)	$ (3.65)
Dilutive	$ (0.71)	$ (3.65)

Loss Per Share - Antidilutive S

Loss Per Share - Antidilutive Shares Excluded from Computation of Diluted Net Income (Loss) Per Share (Details) - shares		3 Months Ended
		Dec. 31, 2015	Dec. 31, 2014
Stock options outstanding
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share, amount		832,541	841,655
Restricted Stock Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share, amount		65,769
Warrants to Purchase C-3 Convertible Preferred Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share, amount	[1]	983,607	983,607
Warrants to Purchase D-3 Convertible Preferred Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share, amount	[1]	769,231
Series A-3 Convertible Preferred Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share, amount			39,663,482
Series B-3 Convertible Preferred Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share, amount			38,589,303
Series C-3 Convertible Preferred Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share, amount			19,081,778
Series D-3 Convertible Preferred Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share, amount			52,509,212
[1]	Upon completion of the Company’s initial public offering in November 2015, warrants to purchase shares of the Company’s C-3 convertible preferred stock and D-3 convertible preferred stock were converted into warrants to purchase shares of the Company’s common stock.

Related Parties - Additional In

Related Parties - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Advance to Officer
Related Party Transaction [Line Items]
Due from related parties	$ 0	$ 99