Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 31, 2014 | Feb. 10, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | EMCORE CORPORATION | |
Entity Central Index Key | 808326 | |
Document Type | 10-Q | |
Document Period End Date | 31-Dec-14 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Accelerated Filer | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 32,106,611 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Statement [Abstract] | ||
Revenue | $18,416 | $14,663 |
Cost of revenue | 13,237 | 12,272 |
Gross profit | 5,179 | 2,391 |
Operating expense: | ||
Selling, general, and administrative | 8,627 | 5,656 |
Research and development | 2,174 | 1,824 |
Gain from change in estimate on ARO obligation | 845 | 0 |
Loss on sale of assets | 228 | 0 |
Total operating expense | 10,184 | 7,480 |
Operating loss | -5,005 | -5,089 |
Other income (expense): | ||
Interest expense, net | -130 | -126 |
Foreign exchange gain | 57 | 100 |
Gain on sale of investment | 0 | 290 |
Change in fair value of financial instruments | 36 | -78 |
Total other (expense) income | -37 | 186 |
Loss from continuing operations before income tax expense | -5,042 | -4,903 |
Income tax benefit | 1,912 | 1,080 |
Loss from continuing operations | -3,130 | -3,823 |
Income from discontinued operations, net of tax | 59,258 | 1,769 |
Net income (loss) | 56,128 | -2,054 |
Foreign exchange translation adjustment | -711 | 45 |
Comprehensive income (loss) | $55,417 | ($2,009) |
Net income (loss) per basic and diluted share: | ||
Net income (loss) per basic and diluted shares, continuing operations (USD per share) | ($0.10) | ($0.13) |
Net income (loss) per basic and diluted shares, discontinued operations (USD per share) | $1.90 | $0.06 |
Net income (loss) per basic share and diluted share (USD per share) | $1.80 | ($0.07) |
Weighted-average number of basic and diluted shares outstanding | 31,217 | 29,938 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $147,576 | $20,687 |
Restricted cash | 407 | 1,482 |
Accounts receivable, net of allowance of $275 and $116, respectively | 15,316 | 12,769 |
Inventory | 15,926 | 15,644 |
Deferred income taxes, net | 0 | 3,908 |
Prepaid expenses and other current assets | 9,372 | 5,336 |
Current assets of discontinued operations | 12,927 | 44,065 |
Total current assets | 201,524 | 103,891 |
Property, plant, and equipment, net | 8,228 | 10,446 |
Other intangible assets, net | 76 | 82 |
Deferred income taxes, net | 0 | 20,172 |
Other non-current assets, net of allowance of $3,561 and $3,561, respectively | 315 | 512 |
Non-current assets of discontinued operations | 8,823 | 56,239 |
Total assets | 218,966 | 191,342 |
Current liabilities: | ||
Borrowings from credit facility | 0 | 26,518 |
Accounts payable | 9,444 | 6,804 |
Deferred gain associated with sale of assets | 3,400 | 3,400 |
Warrant liability | 86 | 122 |
Accrued expenses and other current liabilities | 25,226 | 15,209 |
Current liabilities of discontinued operations | 7,905 | 20,924 |
Total current liabilities | 46,061 | 72,977 |
Asset retirement obligations | 1,680 | 4,543 |
Other long-term liabilities | 703 | 755 |
Non-current liabilities of discontinued operations | 0 | 720 |
Total liabilities | 48,444 | 78,995 |
Commitments and contingencies (Note 12) | ||
Shareholders’ equity: | ||
Preferred stock, $0.0001 par value, 5,882 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, no par value, 50,000 shares authorized; 31,653 shares issued and 31,613 shares outstanding as of December 31, 2014; 31,149 shares issued and 31,109 shares outstanding as of September 30, 2014 | 758,126 | 755,368 |
Treasury stock, at cost; 40 shares | -2,071 | -2,071 |
Accumulated other comprehensive income | 1,126 | 1,837 |
Accumulated deficit | -586,659 | -642,787 |
Total shareholders’ equity | 170,522 | 112,347 |
Total liabilities and shareholders’ equity | $218,966 | $191,342 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets - Parenthetical (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable: | ||
Allowance for doubtful accounts | $275 | $116 |
Other non-current assets: | ||
Allowance for doubtful accounts | $3,561 | $3,561 |
Shareholders’ equity: | ||
Preferred stock, par value (USD per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 5,882,000 | 5,882,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (USD per share) | $0 | $0 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 31,653,000 | 31,149,000 |
Common stock, shares outstanding (in shares) | 31,613,000 | 31,109,000 |
Treasury stock, shares held (in shares) | 40,000 | 40,000 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash flows from operating activities: | ||
Net income (loss) | $56,128 | ($2,054) |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Depreciation, amortization, and accretion expense | 1,234 | 2,068 |
Stock-based compensation expense | 2,608 | 1,135 |
Deferred income taxes | 24,080 | 0 |
Gain on sale of Photovoltaics Business | -87,022 | 0 |
Gain on sale of an investment | 0 | -290 |
Provision adjustments related to doubtful accounts | 290 | -35 |
Provision adjustments related to product warranty | 402 | 265 |
Change in fair value of financial instruments | -36 | 78 |
Gain from change in estimate on ARO obligation | -845 | 0 |
Reclassification of foreign currency translation adjustment | 744 | 0 |
Net loss on disposal of equipment | -237 | 0 |
Total non-cash adjustments | -59,796 | 3,221 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 5,334 | 5,950 |
Inventory | -2,188 | 135 |
Other assets | -4,066 | 981 |
Accounts payable | -374 | -1,652 |
Accrued expenses and other current liabilities | 7,711 | 144 |
Total change in operating assets and liabilities | 6,417 | 5,558 |
Net cash provided by operating activities | 2,749 | 6,725 |
Cash flows from investing activities: | ||
Proceeds from sale of Photovoltaics Business | 150,000 | 0 |
Cash proceeds from sale of investment | 0 | 290 |
Purchase of equipment | -845 | -684 |
Decrease in restricted cash | 1,075 | 262 |
Proceeds from disposal of property, plant and equipment | 50 | 0 |
Net cash provided by (used in) investing activities | 150,280 | -132 |
Cash flows from financing activities: | ||
Payments on credit facilities | -26,518 | -4,506 |
Proceeds from stock plans | 355 | 14 |
Net cash used in financing activities | -26,163 | -4,492 |
Effect of exchange rate changes on foreign currency | 23 | -61 |
Net increase in cash and cash equivalents | 126,889 | 2,040 |
Cash and cash equivalents at beginning of period | 20,687 | 16,104 |
Cash and cash equivalents at end of period | 147,576 | 18,144 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid during the period for interest | 94 | 112 |
Cash paid during the period for income taxes | $25 | $0 |
Description_of_Business
Description of Business | 3 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business |
Business Overview | |
EMCORE Corporation and its subsidiaries (referred to herein as the “Company”, “we”, “our”, or “EMCORE”) offers a broad portfolio of compound semiconductor-based products for the fiber optics market. We were established in 1984 as a New Jersey corporation and we have one reporting segment: Fiber Optics. EMCORE's Fiber Optics business provides optical components, subsystems and systems for high-speed telecommunications, Cable Television (CATV), Wireless and Fiber-To-The-Premises (FTTP) networks, as well as products for satellite communications, video transport and specialty photonics technologies for defense and homeland security applications. EMCORE's Solar Photovoltaics business, which was sold in December 2014, provided products for space power applications including high-efficiency multi-junction solar cells, Covered Interconnect Cells (CICs) and complete satellite solar panels. In addition to organic growth and development of our existing Fiber Optics market, we intend to pursue other strategies to enhance shareholder value, which may include acquisitions, investments in joint ventures, partnerships, and other strategic alternatives, such as dispositions, reorganizations, recapitalizations or other similar transactions. Accordingly, the Strategy Committee of the Board and our management may from time to time be engaged in evaluating potential strategic opportunities and may enter into definitive agreements with respect to, such transactions or other strategic alternatives. | |
Basis of Presentation | |
On September 17, 2014, EMCORE entered into an Asset Purchase Agreement (the “Photovoltaics Agreement”) with SolAero Technologies Corporation ("SolAero") (formerly known as Photon Acquisition Corporation) pursuant to which the Company agreed to sell the Photovoltaics Business ("Photovoltaics Asset Sale") for $150.0 million in cash, subject to a working capital adjustment pursuant to the Photovoltaics Agreement. On December 10, 2014, EMCORE completed the Photovoltaics Asset Sale. | |
On October 22, 2014, EMCORE entered into an Asset Purchase Agreement (the "Digital Products Agreement") with NeoPhotonics Corporation, a Delaware corporation ("NeoPhotonics") pursuant to which the Company agreed to sell certain assets, and transfer certain liabilities of the Company's telecommunications business (collectively, the "Digital Products Business" and, the sale of the Digital Products Business, the "Digital Products Assets Sale") to NeoPhotonics for an aggregate purchase price of $17.5 million, subject to certain adjustments, consisting of $1.5 million in cash at closing and a promissory note in the principal amount of $16.0 million (the "Promissory Note"). | |
On January 2, 2015, EMCORE and NeoPhotonics entered into Amendment No. 1 (the "APA Amendment") to the Digital Products Agreement dated October 22, 2014. Among other things, the APA Amendment revised the nature and timing of the financial deliverable requirements of the Company to NeoPhotonics under the original Digital Products Agreement. The assets sold pursuant to the Digital Products Agreement included certain fixed assets, inventory and intellectual property for the ITLA, micro-ITLA, T-TOSA and T-XFP product lines within the Company’s telecommunications business. On January 2, 2015, EMCORE completed the sale of the Digital Products Business. | |
These Asset Sales are reported as discontinued operations, which require retrospective restatement of prior periods to classify the results of operations as discontinued operations. We have also reclassified the assets and liabilities that were sold within the descriptions "assets of discontinued operations" and "liabilities of discontinued operations" within current and non-current assets and liabilities, respectively, on the condensed consolidated balance sheet as of December 31, 2014 and September 30, 2014, respectively. The financial results of the Photovoltaics Business and the Digital Products Business are presented as "discontinued operations" on the Consolidated Statements of Operations and Comprehensive income (loss) for the three months ended December 31, 2014 and 2013. See also Note 3 - Discontinued Operations. The notes to our condensed consolidated financial statements relates to our continuing operations only, unless otherwise indicated. | |
Beginning in the first quarter of fiscal year 2015, the Company operates as a single reportable segment. | |
Interim Financial Statements | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim information, and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and notes required by U.S. GAAP for annual financial statements. In our opinion, the interim financial statements reflect all normal adjustments that are necessary to provide a fair presentation of the financial results for the interim periods presented. Operating results for interim periods are not necessarily indicative of results that may be expected for an entire fiscal year. The condensed consolidated balance sheet as of September 30, 2014 has been derived from the audited consolidated financial statements as of such date as adjusted for discontinued operations. Also see Note 3 - Discontinued Operations. For a more complete understanding of our business, financial position, operating results, cash flows, risk factors and other matters, please refer to our Annual Report on Form 10-K for the fiscal year ended September 30, 2014. | |
All significant intercompany accounts and transactions have been eliminated in consolidation. We are not the primary beneficiary of, nor do we hold a significant variable interest in, any variable interest entity. We have evaluated subsequent events through the date that the financial statements were issued. | |
Sale of Fiber Optics-related Assets | |
On March 27, 2012, we entered into a Master Purchase Agreement with a subsidiary of Sumitomo Electric Industries, LTD (SEI), pursuant to which we agreed to sell certain assets and transfer certain obligations associated with our Fiber Optics segment. On May 7, 2012, we completed the sale of these assets to SEI and recorded a gain of approximately $2.8 million. Under the terms of the Master Purchase Agreement, we have agreed to indemnify SEI for up to $3.4 million of potential claims and expenses for the two-year period following the sale and we have recorded this amount as a deferred gain on our balance sheet as of December 31, 2014 and September 30, 2014 as a result of these contingencies. SEI paid $13.1 million in cash and deposited approximately $2.6 million into escrow as security for indemnification obligations and any purchase price adjustments. During the fiscal year ended September 30, 2013, we resolved the purchase price contingencies resulting in the reduction of the purchase price by $1.1 million. The reduced purchase price is recorded as an offset to the escrow receivable of $2.6 million. There remains a deferred gain of $3.4 million related to our indemnification obligation to SEI and an escrow receivable of $1.5 million as of December 31, 2014 as claims have been made under the Master Purchase Agreement against these balances prior to the end of the indemnification period in May 2014. We are not able to determine at this time the outcome of any potential settlements associated with the remaining claims and as a result have not recorded any related adjustments to the deferred gain amount. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended | |
Dec. 31, 2014 | ||
Accounting Changes and Error Corrections [Abstract] | ||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |
There have been no recent accounting pronouncements or changes in accounting pronouncements that are of significance, or of potential significance, to us other than those discussed below: | ||
• | In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters. This accounting standard update requires an entity to release into net income the entire amount of a cumulative translation adjustment related to its investment in a foreign entity when as a parent it either sells a part or all of its investment in the foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within the foreign entity. This accounting standard was implemented for our fiscal year beginning on October 1, 2014 and it had no significant impact on the Company. | |
• | In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This standard changes the criteria for reporting discontinued operations. Under the accounting standard update, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity's operations and financial results when either it qualifies as held for sale, disposed of by sale, or disposed of other than by sale. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. While early adoption is allowed, we have determined that we would not early adopt and as a result this accounting standard update will be effective for our fiscal year beginning on October 1, 2015. We are currently evaluating the impact of this accounting standard update on our Condensed Consolidated Financial Statements. | |
• | In May 2014, as part of its ongoing efforts to assist in the convergence of U.S. GAAP and International Financial Reporting Standards, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. Under the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard will be effective for us beginning October 1, 2017 and early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We anticipate this standard will not have a material impact on our Condensed Consolidated Financial Statements. | |
• | In June 2014, the FASB issued ASU No. 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period. The new standard requires a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period be accounted for as a performance condition. The guidance is effective for annual periods beginning after December 15, 2015 and interim periods within that year, and early adoption is permitted. The guidance should be applied on a prospective basis to awards that are granted or modified on or after the effective date. The guidance may be applied on a modified retrospective basis for performance targets outstanding on or after the beginning of the first annual period presented as of the date of adoption. This accounting standard update will be effective for our fiscal year beginning October 1, 2016. We are currently evaluating the impact of this accounting standard update on our Consolidated Financial Statements. | |
• | In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. The standard provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. In addition, the standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. The guidance is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. This accounting standard update will be effective for our fiscal year beginning October 1, 2017. We are currently evaluating the impact of this accounting standard update on our Consolidated Financial Statements. |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Discontinued Operations | Discontinued Operations | |||||||
Sale of Photovoltaics Business | ||||||||
On September 17, 2014, EMCORE entered into an Asset Purchase Agreement (the “Photovoltaics Agreement”) with SolAero pursuant to which the Company agreed to sell the Photovoltaics Business for $150.0 million in cash, subject to a working capital adjustment pursuant to the Photovoltaics Agreement. On December 10, 2014, EMCORE completed the Photovoltaics Asset Sale. | ||||||||
The financial results of the Photovoltaics Business are reported as discontinued operations for the three months ended December 31, 2014 and 2013, respectively. In connection with this transaction, we sold net assets of $60.3 million to SolAero and incurred transaction costs of $2.7 million. During the three months ended December 31, 2014, we recognized a gain of $56.8 million, net of tax on the sale of the Photovoltaics Business which is recorded within discontinued operations in the condensed consolidated statements of operations and comprehensive income (loss). | ||||||||
We have classified the assets and liabilities that were sold as "assets of discontinued operations" and "liabilities of discontinued operations" within current and non-current assets and liabilities, respectively, on the condensed consolidated balance sheet as of September 30, 2014. As of September 30, 2014, the carrying amount of goodwill related to the Photovoltaics Business was $20.4 million and this balance was reclassified to non-current assets of discontinued operations. No Photovoltaics assets and liabilities remain on the condensed consolidated balance sheet as of December 31, 2014. | ||||||||
The following table presents the aggregate carrying amounts of the major classes of assets and liabilities related to the Photovoltaics business as of December 31, 2014 and September 30, 2014. | ||||||||
As of | As of | |||||||
(in thousands) | December 31, | September 30, | ||||||
2014 | 2014 | |||||||
Assets of discontinued operations: | ||||||||
Accounts receivable, net of allowance of $0 | $ | — | $ | 17,827 | ||||
Inventory | — | 7,203 | ||||||
Prepaid expenses and other current assets | — | 1,512 | ||||||
Current assets of discontinued operations | — | 26,542 | ||||||
Property, plant and equipment, net | — | 26,660 | ||||||
Goodwill | — | 20,384 | ||||||
Other non-current assets, net | — | 254 | ||||||
Non-current assets of discontinued operations | — | 47,298 | ||||||
Total assets of discontinued operations | $ | — | $ | 73,840 | ||||
Liabilities of discontinued operations: | ||||||||
Accounts payable | $ | — | $ | 4,640 | ||||
Accrued expenses and other current liabilities | — | 5,398 | ||||||
Current liabilities of discontinued operations | — | 10,038 | ||||||
Asset retirement obligations | — | 720 | ||||||
Non-current liabilities of discontinued operations | — | 720 | ||||||
Total liabilities of discontinued operations | $ | — | $ | 10,758 | ||||
The following table presents the statements of operations for the discontinued operations of the Photovoltaics Business | ||||||||
from October 1, 2014 to December 10, 2014 and for the three months ended December 31, 2013. | ||||||||
(in thousands) | For the three months ended December 31, | |||||||
2014 | 2013 | |||||||
Revenue | $ | 12,614 | $ | 20,919 | ||||
Cost of revenue | 8,245 | 13,180 | ||||||
Gross profit | 4,369 | 7,739 | ||||||
Operating expense | 2,703 | 1,549 | ||||||
Other income | 779 | — | ||||||
Gain on sale of discontinued operations | 87,022 | — | ||||||
Income from discontinued operations before income tax | 89,467 | 6,190 | ||||||
Income tax expense | (30,203 | ) | (2,347 | ) | ||||
Income from discontinued operations, net of tax | $ | 59,264 | $ | 3,843 | ||||
In connection with the liquidation of the Netherlands and Spain subsidiaries in October 2014, we recognized other income within discontinued operations of $0.7 million previously recorded in accumulated other comprehensive income. | ||||||||
Sale of Digital Products Business | ||||||||
On October 22, 2014, EMCORE entered into an Asset Purchase Agreement (the "Digital Products Agreement") with NeoPhotonics Corporation, a Delaware corporation ("NeoPhotonics") pursuant to which the Company agreed to sell certain assets, and transferred certain liabilities of the Company's telecommunications business (collectively, the "Digital Products Business" and, the sale of the Digital Products Business, the "Digital Products Assets Sale") to NeoPhotonics for an aggregate purchase price of $17.5 million, subject to certain adjustments, consisting of $1.5 million in cash at closing and a promissory note in the principal amount of $16.0 million (the "Promissory Note"). The Promissory Note bears interest of 5.0% per annum for the first year and 13.0% per annum for the second year, payable semi-annually in cash, and matures two years from the closing of the transaction. In addition, the promissory note is subject to prepayments under certain circumstances, and is secured by certain of the assets sold to NeoPhotonics in the transaction. The Company is in the process of assessing the fair value of the consideration received from the sale of the Digital Products Business that closed subsequent to December 31, 2014. | ||||||||
On January 2, 2015, EMCORE and NeoPhotonics entered into Amendment No. 1 (the "APA Amendment") to the Digital Products Agreement dated October 22, 2014. Among other things, the APA Amendment revised the nature and timing of the financial deliverable requirements of the Company to NeoPhotonics under the original Digital Products Agreement. The assets sold pursuant to the Digital Products Agreement included certain fixed assets, inventory and intellectual property for the ITLA, micro-ITLA, T-TOSA and T-XFP product lines within the Company’s telecommunications business. On January 2, 2015, EMCORE completed the sale of the Digital Products Business. | ||||||||
The financial results of the Digital Products Business are reported as discontinued operations. We have classified the assets and liabilities that are held for sale within the descriptions "assets of discontinued operations" and "liabilities of discontinued operations" within current and non-current assets and liabilities, respectively, on the condensed consolidated balance sheet as of December 31, 2014 and September 30, 2014. | ||||||||
The following table presents the aggregate carrying amounts of the major classes of assets and liabilities related to the Digital Products Business as of December 31, 2014 and September 30, 2014. | ||||||||
As of | As of | |||||||
(in thousands) | December 31, | September 30, | ||||||
2014 | 2014 | |||||||
Assets held for sale: | ||||||||
Accounts receivable, net of allowance of $25 and $17, respectively | $ | 9,992 | $ | 14,268 | ||||
Inventory | 2,905 | 3,225 | ||||||
Prepaid expenses and other current assets | 30 | 30 | ||||||
Current assets of discontinued operations | 12,927 | 17,523 | ||||||
Property, plant and equipment, net | 7,795 | 7,881 | ||||||
Other intangible assets, net | 1,028 | 1,060 | ||||||
Non-current assets of discontinued operations | 8,823 | 8,941 | ||||||
Total assets of discontinued operations | $ | 21,750 | $ | 26,464 | ||||
Liabilities held for sale: | ||||||||
Accounts payable | 7,894 | 10,848 | ||||||
Accrued expenses and other current liabilities | 11 | 38 | ||||||
Current liabilities of discontinued operations | $ | 7,905 | $ | 10,886 | ||||
The following table presents the statements of operations for the discontinued operations of the Digital Products Business: | ||||||||
(in thousands) | For the three months ended December 31, | |||||||
2014 | 2013 | |||||||
Revenue | $ | 11,815 | $ | 8,629 | ||||
Cost of revenue | 9,112 | 8,624 | ||||||
Gross profit | 2,703 | 5 | ||||||
Operating expense | 2,712 | 3,346 | ||||||
Loss from discontinued operations before income tax | (9 | ) | (3,341 | ) | ||||
Income tax benefit | 3 | 1,267 | ||||||
Loss from discontinued operations | $ | (6 | ) | $ | (2,074 | ) |
Fair_Value_Accounting
Fair Value Accounting | 3 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||
Fair Value Accounting | Fair Value Accounting | |||||||||||||
ASC 820, Fair Value Measurements, establishes a valuation hierarchy for disclosure of the inputs to valuation techniques used to measure fair value. This standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: | ||||||||||||||
• | Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. We classify investments within Level 1 if quoted prices are available in active markets. | |||||||||||||
• | Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly, through market corroboration, for substantially the full term of the financial instrument. We classify items in Level 2 if the investments are valued using observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. | |||||||||||||
• | Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. A financial asset or liability's classification within this hierarchy is determined based on the lowest level input that is significant to the fair value measurement. We do not hold any financial assets or liabilities within Level 3. | |||||||||||||
Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The following table lists our financial assets and liabilities that are measured at fair value on a recurring basis: | ||||||||||||||
Fair Value Measurement | ||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | |||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Remaining Inputs | Significant Unobservable Inputs | Total | |||||||||||
As of December 31, 2014 | ||||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 147,576 | — | — | $ | 147,576 | ||||||||
Restricted cash | 407 | — | — | 407 | ||||||||||
Liabilities: | ||||||||||||||
Warrant liability | — | 86 | — | 86 | ||||||||||
As of September 30, 2014 | ||||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 20,687 | — | — | $ | 20,687 | ||||||||
Restricted cash | 1,482 | — | — | 1,482 | ||||||||||
Liabilities: | ||||||||||||||
Warrant liability | — | 122 | — | 122 | ||||||||||
Cash consists primarily of bank deposits or, occasionally, highly liquid short-term investments with a maturity of three months or less at the time of purchase. | ||||||||||||||
Restricted cash represents temporarily restricted deposits held as compensating balances against short-term borrowing arrangements. | ||||||||||||||
As of December 31, 2014 and September 30, 2014, warrants representing the right to purchase 400,001 shares of our common stock were outstanding. All of our warrants meet the classification requirements for liability accounting pursuant to ASC 815, Derivatives and Hedging. Each quarter, we expect an impact on our statement of operations and comprehensive income (loss) when we record the change in fair value of our outstanding warrants using the Monte Carlo option valuation model. The Monte Carlo option valuation model is used since it allows the valuation of each warrant to factor in the value associated with our right to effect a mandatory exercise of each warrant. The valuation model requires the input of subjective assumptions, including the warrant's expected life and the price volatility of the underlying stock. The change in the fair value of our warrants has been primarily due to the change in the closing price of our common stock. | ||||||||||||||
The carrying amounts of accounts receivable, prepaid expenses and other current assets, borrowings from our credit facility, accounts payable, accrued expenses and other current liabilities approximate fair value because of the short maturity of these instruments. |
Accounts_Receivable
Accounts Receivable | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Accounts Receivable | Accounts Receivable | |||||||
The components of accounts receivable consisted of the following: | ||||||||
As of | As of | |||||||
(in thousands) | December 31, | September 30, 2014 | ||||||
2014 | ||||||||
Accounts receivable | $ | 14,971 | $ | 12,252 | ||||
Accounts receivable – unbilled | 620 | 633 | ||||||
Accounts receivable, gross | 15,591 | 12,885 | ||||||
Allowance for doubtful accounts | (275 | ) | (116 | ) | ||||
Accounts receivable, net | $ | 15,316 | $ | 12,769 | ||||
Unbilled accounts receivable represents revenue recognized but not yet billed as of the period ended. Billings on contracts using the percentage-of-completion method usually occur upon completion of predetermined contract milestones or other contract terms, such as customer approval. The allowance for doubtful accounts is based on the age of receivables and a specific identification of receivables considered at risk of collection. | ||||||||
As of December 31, 2014, and September 30, 2014, we had $0.6 million and $0.7 million respectively, of accounts receivable recorded using the percentage of completion method. Of these amounts, $0.0 million was invoiced and $0.6 million was unbilled as of December 31, 2014 and $0.1 million was invoiced and $0.6 million was unbilled as of September 30, 2014. |
Inventory
Inventory | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory | Inventory | |||||||
The components of inventory consisted of the following: | ||||||||
As of | As of | |||||||
(in thousands) | December 31, | September 30, 2014 | ||||||
2014 | ||||||||
Raw materials | $ | 7,503 | $ | 7,255 | ||||
Work in-process | 4,467 | 4,403 | ||||||
Finished goods | 3,956 | 3,986 | ||||||
Inventory | $ | 15,926 | $ | 15,644 | ||||
Property_Plant_and_Equipment_n
Property, Plant, and Equipment, net | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant, and Equipment, net | Property, Plant, and Equipment, net | |||||||
The components of property, plant, and equipment, net consisted of the following: | ||||||||
As of | As of | |||||||
(in thousands) | December 31, | September 30, 2014 | ||||||
2014 | ||||||||
Equipment | $ | 6,872 | $ | 7,328 | ||||
Furniture and fixtures | 38 | 42 | ||||||
Computer hardware and software | 688 | 749 | ||||||
Leasehold improvements | 374 | 2,278 | ||||||
Construction in progress | 256 | 49 | ||||||
Property, plant, and equipment, net | $ | 8,228 | $ | 10,446 | ||||
As a result of a revision in the estimated amount of cash flows for asset retirement obligations relating to the extension of the Alhambra facility leases and changes in the required restoration efforts, the Company reduced its asset retirement obligations liability by $2.9 million with an offsetting reduction to leasehold improvements of $2.1 million, and gain from change in estimate on ARO obligation of $0.8 million. Also see Note 12 - Commitments and Contingencies. | ||||||||
As of December 31, 2014 and September 30, 2014, accumulated depreciation was approximately $23.8 million and $21.5 million, respectively. |
Intangible_Assets
Intangible Assets | 3 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Intangible Assets [Abstract] | |||||||||||||||||||||||||
Intangible Assets | Intangible Assets | ||||||||||||||||||||||||
The following table sets forth the carrying value of intangible assets : | |||||||||||||||||||||||||
(in thousands) | As of December 31, 2014 | As of September 30, 2014 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross Assets | Accumulated | Net | ||||||||||||||||||||
Assets | Amortization | Assets | Amortization | Assets | |||||||||||||||||||||
Fiber Optics: | |||||||||||||||||||||||||
Patents | 4,697 | (4,621 | ) | 76 | 4,697 | (4,615 | ) | 82 | |||||||||||||||||
Total | $ | 4,697 | $ | (4,621 | ) | $ | 76 | $ | 4,697 | $ | (4,615 | ) | $ | 82 | |||||||||||
Amortization expense related to intangible assets is included in selling, general, and administrative expense on our statement of operations and comprehensive (loss) income. Based on the carrying amount of our intangible assets as of December 31, 2014, the estimated future amortization expense is as follows: | |||||||||||||||||||||||||
Estimated Future Amortization Expense | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Nine months ended September 30, 2015 | $ | 18 | |||||||||||||||||||||||
Fiscal year ended September 30, 2016 | 25 | ||||||||||||||||||||||||
Fiscal year ended September 30, 2017 | 33 | ||||||||||||||||||||||||
Fiscal year ended September 30, 2018 | — | ||||||||||||||||||||||||
Fiscal year ended September 30, 2019 and thereafter | — | ||||||||||||||||||||||||
Total | $ | 76 | |||||||||||||||||||||||
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities | |||||||
The components of accrued expenses and other current liabilities consisted of the following: | ||||||||
As of | As of | |||||||
(in thousands) | December 31, | September 30, 2014 | ||||||
2014 | ||||||||
Compensation | $ | 5,457 | $ | 1,797 | ||||
Warranty | 1,904 | 2,285 | ||||||
Termination fee | 2,775 | 2,775 | ||||||
Professional fees | 509 | 2,181 | ||||||
Royalty | 13 | — | ||||||
Customer deposits | 551 | 593 | ||||||
Deferred revenue | 49 | 97 | ||||||
Self insurance | 1,249 | 1,470 | ||||||
Income and other taxes | 5,618 | 1,433 | ||||||
Loss on sale contracts | 204 | 119 | ||||||
Severance accruals | 2,061 | 1,317 | ||||||
Loss on inventory purchase commitments | — | 306 | ||||||
Amounts owed to SolAero | 3,767 | — | ||||||
Other | 1,069 | 836 | ||||||
Accrued expenses and other current liabilities | $ | 25,226 | $ | 15,209 | ||||
Compensation: For the three months ended December 31, 2014, the Company accrued additional compensation expense associated with the sale of the Photovoltaics Business. | ||||||||
Professional Fees: As of September 30, 2014, professional fees included transaction costs of $1.8 million associated with the sale of the Photovoltaics Business. | ||||||||
Income and other taxes: For the three months ended December 31, 2014, the Company reported $1.9 million of income tax benefit from continuing operations losses and $30.2 million of income tax expense within income from discontinued operations. The income tax expense within discontinued operations includes estimated alternative minimum tax and other adjustments prescribed by ASC 740 in allocating expected annual income tax expense (benefit) between continuing operations and discontinued operations. During the three months ended December 31, 2014, the Company utilized $24.1 million of deferred tax assets. The Company expects to make a payment for alternative minimum taxes and while the remaining income tax expense will be offset mainly through utilization of $24.1 million of deferred tax assets and net operating loss carry forwards. Also see Note 11 - Income and other Taxes. | ||||||||
Amounts owed to SolAero: This represents SolAero customer payments received by EMCORE after the December 10, 2014 closing of the Photovoltaics Asset Sale. These amounts were reimbursed to SolAero in January 2015. | ||||||||
Severance accruals: On November 15, 2013, Mr. Chris Larocca proposed to resign as the Company's Chief Operating Officer, effective as of November 30, 2013. The Company recorded a charge of $0.5 million in the three months ended December 31, 2013 related to the separation agreement entered into as part of Mr. Larocca's resignation. | ||||||||
On September 17, 2014, Dr. Hong Q. Hou announced he will resign as the Company's Chief Executive Officer, effective as of January 2, 2015 or, if later, fifteen days following the date on which the Company hires a successor Chief Executive Officer (the “Separation Date”). The Company and Dr. Hou entered into a separation agreement and general release, dated September 17, 2014 (Dr. Hou 's Separation Agreement), which includes mutual releases by Dr. Hou and the Company of all claims related to Dr. Hou's employment and service relationship with, and termination of employment and service from, the Company. The separation agreement provides for among other things, the continuation of his base salary for 86 weeks, benefits for 18 months, outplacement services for a period of not more than one year and with a value not in excess of $15,000 and immediate vesting of all his outstanding non-vested equity awards. These payments are not contingent upon any future service by Dr. Hou. The Company recorded a charge of approximately $0.8 million in the fourth quarter of fiscal year 2014 related to Dr. Hou's separation agreement. | ||||||||
On December 10, 2014, Monica Van Berkel announced she will resign as the Company's Chief Administrative Officer, effective as of January 2, 2015 (the “Separation Date”). The Company and Ms. Van Berkel entered into a separation agreement and general release, dated December 10, 2014 (Ms. Van Berkel 's Separation Agreement), which includes mutual releases by Ms. Van Berkel and the Company of all claims related to Ms. Van Berkel's employment and service relationship with, and termination of employment and service from, the Company. The separation agreement provides for among other things, the continuation of her base salary for 74 weeks, benefits for 18 months, outplacement services for a period of not more than one year and with a value not in excess of $15,000 and immediate vesting of all her outstanding non-vested equity awards. These payments are not contingent upon any future service by Ms. Van Berkel. The Company recorded a charge of approximately $0.6 million in the first quarter of fiscal year 2015 related to Ms. Van Berkel's separation agreement. | ||||||||
On December 10, 2014, Alfredo Gomez announced he will resign as the Company's General Counsel and Secretary, effective as of February 13, 2015 or, if later, following the date on which the Company hires a successor in-house counsel (the “Separation Date”). The Company and Mr. Gomez entered into a separation agreement and general release, dated December 10, 2014 (Mr. Gomez's Separation Agreement), which includes mutual releases by Mr. Gomez and the Company of all claims related to Mr. Gomez's employment and service relationship with, and termination of employment and service from, the Company. The separation agreement provides for among other things, the continuation of his base salary for 68 weeks, benefits for 18 months outplacement services for a period of not more than one year and with a value not in excess of $15,000 and immediate vesting of all his outstanding non-vested equity awards. These payments are not contingent upon any future service by Mr. Gomez. The Company recorded a charge of approximately $0.5 million in the first quarter of fiscal year 2015 related to Mr. Gomez's separation agreement. | ||||||||
Expense related to severance accruals is included in selling, general, and administrative expense on our statement of operations and comprehensive income (loss). The following table summarizes the changes in the severance-related accrual accounts: | ||||||||
(in thousands) | Severance-related accruals | |||||||
Balance as of September 30, 2014 | $ | 1,317 | ||||||
Expense - charged to accrual | 965 | |||||||
Payments and accrual adjustments | (221 | ) | ||||||
Balance as of December 31, 2014 | $ | 2,061 | ||||||
Warranty: We generally provide product and other warranties on our components, power systems, and fiber optic products, in addition to certain already divested product lines where we retained the warranty obligations. Certain parts and labor warranties from our vendors can be assigned to our customers. Our reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. | ||||||||
The following table summarizes the changes in our product warranty accrual accounts: | ||||||||
Product Warranty Accruals | For the three months ended December 31, | |||||||
(in thousands) | 2014 | 2013 | ||||||
Balance at beginning of period | $ | 2,816 | $ | 3,881 | ||||
Provision for product warranty - expense | 402 | — | ||||||
Adjustments and utilization of warranty accrual | (783 | ) | (218 | ) | ||||
Balance at end of period | $ | 2,435 | $ | 3,663 | ||||
Current portion | $ | 1,904 | $ | 3,132 | ||||
Non-current portion | 531 | 531 | ||||||
Product warranty liability at end of period | $ | 2,435 | $ | 3,663 | ||||
Credit_Facilities
Credit Facilities | 3 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Credit Facilities | Credit Facilities |
On November 11, 2010, we entered into a Credit and Security Agreement (credit facility) with Wells Fargo Bank, National Association ("Wells Fargo"). The credit facility is secured by the Company's assets and is subject to a borrowing base formula based on the Company's eligible accounts receivable, inventory, and machinery and equipment accounts. | |
On December 3, 2014, we entered into a Sixth Amendment to the credit facility, pursuant to which Wells Fargo agreed, to automatically release all encumbrances covering certain of the Company’s assets to be sold pursuant to the Photovoltaics Agreement and the Digital Products Agreement. In addition, on December 10, 2014, upon notice to Wells Fargo of the closing of the transaction contemplated by the Photovoltaics Agreement, the maximum borrowing allowed under the credit facility was reduced from $35.0 million to $15.0 million, and certain other changes to the borrowing base calculations went into effect. | |
As of December 31, 2014, there was no outstanding balance under this credit facility with an interest rate of 3.3% and approximately $1.5 million reserved for six stand-by letters of credit under the credit facility. |
Income_and_other_Taxes
Income and other Taxes | 3 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Income and other Taxes | Income and other Taxes |
At September 30, 2014, the Company determined that it was more likely than not that certain deferred tax assets would be realized upon the sale of the Photovoltaic Business in fiscal year 2015. As a result, a net deferred tax valuation allowance release of $24.1 million was recorded as an income tax benefit during fiscal year 2014. The sale of the Photovoltaic Business closed on December 10, 2014 and the Company realized a gain on the transaction. | |
For the three months ended December 31, 2014, the Company reported $1.9 million of income tax benefit from continuing operations losses and $30.2 million of income tax expense within income from discontinued operations. The income tax expense within discontinued operations includes estimated alternative minimum tax and other adjustments prescribed by ASC 740 in allocating expected annual income tax expense (benefit) between continuing operations and discontinued operations. During the three months ended December 31, 2014, the Company utilized $24.1 million of deferred tax assets. An income tax benefit will be recorded on anticipated losses from continuing operations incurred during the remaining quarters of fiscal 2015. The Company expects to make a payment for alternative minimum taxes and the remaining income tax expense will be offset mainly through utilization of $24.1 million of deferred tax assets and utilization of net operating loss carry forwards. | |
For the three months ended December 31, 2013, the Company reported $1.1 million of income tax benefit from losses from continuing operations and $1.1 million of income tax expense within income from discontinued operations. | |
For the three months ended December 31, 2014, the effective tax rate was 37.9%, compared to 22.0% for the three months ended December 31, 2013. The higher tax rate for December 31, 2014 is primarily due to the methodology used for allocating income tax expense between continuing and discontinued operations under ASC 740. In determining the effective tax rate, the Company uses estimates to forecast the results from continuing operations for the current fiscal year as well as permanent differences between book and tax accounting. The Company believes its forecast of losses from continuing operations is a reasonable estimate. | |
The Company expects all remaining deferred tax assets will have a full valuation allowance at September 30, 2015. However, on a quarterly basis, the Company will evaluate the positive and negative evidence to assess whether the more likely than not criterion, mandated by ASC 740, has been satisfied in determining whether there will be further adjustments to the valuation allowance. | |
During the three months ended December 31, 2014 and 2013, there were no material increases or decreases in unrecognized tax benefits and we do not anticipate any material increases or decreases in the amounts of unrecognized tax benefits for the remainder of fiscal year 2015. As of December 31, 2014 and September 30, 2014, we had approximately $462,000 and $445,000, respectively, of interest and penalties accrued as tax liabilities on our balance sheet. | |
We file income tax returns in the U.S. federal, state, and local jurisdictions. Currently, the Company's September 30, 2012, federal return is under examination by the Internal Revenue Service. The examination is currently in progress and the Company has not been notified of any significant issues. There are no state income tax returns under examination. The following tax years remain open to assessment for each of the more significant jurisdictions where we are subject to income taxes: after fiscal year 2010 for the U.S. federal and the State of New Mexico, and after fiscal year 2009 for the state of California. | |
Included in our operating income for the three months ended December 31, 2013 were $0.6 million of New Mexico incentive tax credits received. The amount received was allocated to cost of goods sold, selling, general and administrative and research and development expense primarily based on the number of employees allocated to the related departments. These credits resulted in cash refunds and a reduction of future payroll and compensation taxes. There were no incentive tax credits received during the three months ended December 31, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Operating Lease Obligations: We lease certain land, facilities, and equipment under non-cancelable operating leases. Operating lease amounts exclude renewal option periods, property taxes, insurance, and maintenance expenses on leased properties. Our facility leases typically provide for rental adjustments for increases in base rent (up to specific limits), property taxes, insurance, and general property maintenance that would be recorded as rent expense. Rent expense was approximately $0.4 million and $0.4 million for the three months ended December 31, 2014 and 2013, respectively. There are no off-balance sheet arrangements other than our operating leases. | ||||
Asset Retirement Obligations ("ARO"): We have known conditional asset retirement conditions, such as certain asset decommissioning and restoration of rented facilities to be performed in the future. Our asset retirement obligations include assumptions related to renewal option periods for those facilities where we expect to extend lease terms. The Company recognizes its estimate of the fair value of its asset retirement obligations in the period incurred in long-term liabilities. The fair value of the asset retirement obligations is also capitalized as property, plant and equipment. | ||||
In future periods, the asset retirement obligation is accreted for the change in its present value and capitalized costs are depreciated over the useful life of the related assets. If the fair value of the estimated asset retirement obligation changes, an adjustment will be recorded to both the asset retirement obligation and the asset retirement capitalized cost. Revisions in estimated liabilities can result from revisions of estimated inflation rates, changes in estimated retirement costs, and changes in the estimated timing of settling asset retirement obligations. The fair value of our asset retirement obligations were estimated by discounting projected cash flows over the estimated life of the related assets using credit adjusted risk-free rates which ranged from 3.25% to 5.78%. There were no asset retirement obligations settled during the three months ended December 31, 2014, and 2013, respectively. Accretion expense of $16,000 and $44,000 was recorded during the three months ended December 31, 2014, and 2013, respectively. | ||||
EMCORE leases a major facility in Alhambra, California covering six buildings where manufacturing, research and development, and general and administrative work is provided. Several leases related to these facilities, which expired in 2011, were being maintained on a month-to-month basis. In November 2014, a new lease for four of the six buildings was signed which was retroactively effective on October 1, 2014. The new lease extended the terms of the lease for three years plus a three year option to extend the lease, added an optional exercise period and clarified the obligations and restoration work necessary to restore the buildings back to the requirements in the lease. | ||||
The Company’s asset retirement obligation consists of legal requirements to return the existing leased facilities to its original state and certain environmental work to be performed due to the presence of a manufacturing fabrication operation and significant changes to the facilities over the past thirty years. EMCORE had estimated a significant asset retirement obligation associated with this site. | ||||
During the first quarter of fiscal 2015, the Company completed an analysis of the new Alhambra lease and revised its estimated future cash flows of its asset retirement obligations. The analysis required estimating the probability or likelihood that the Company will be required to remove certain infrastructure and restore the leased properties as set forth in the new lease, and the timing and amount of those future costs. The analysis resulted in the downward revision of the Company’s asset retirement obligation liability. This change in the estimated cash flows resulted in a reduction in the asset retirement obligations liability by $2.9 million with an offsetting reduction to property, plant, and equipment of $2.1 million, and a gain from change in estimate of ARO obligation of $0.8 million. The Company first reduced the net leasehold improvement asset to the extent of the carrying amount of the related asset initially recorded when the asset retirement obligations were established. The amount of the remaining reduction to the asset retirement obligations was recorded as a reduction to operating expenses. | ||||
The following table summarizes asset retirement obligations activity. | ||||
Asset retirement obligations: | As of December 31, | |||
(in thousands) | 2014 | |||
Balance at beginning of period | $ | 5,263 | ||
Asset retirement obligations reclassified to liabilities of discontinued operations | (720 | ) | ||
Subtotal | 4,543 | |||
Accretion expense | 16 | |||
Revision in estimated cash flows | (2,879 | ) | ||
Balance at end of period | $ | 1,680 | ||
Indemnifications: We have agreed to indemnify certain customers against claims of infringement of the intellectual property rights of others in our sales contracts with these customers. Historically, we have not paid any claims under these indemnification obligations. On September 19, 2013, we received written notice from a customer of our broadband products requesting indemnification relating to a lawsuit brought against them alleging patent infringement of a system incorporating our product. As of December 31, 2014, there has been no resolution to this claim. | ||||
In March 2012, we entered into a Master Purchase Agreement with SEI, pursuant to which we agreed to sell certain assets and transfer certain obligations associated with our Fiber Optics segment. Under the terms of the Master Purchase Agreement, we have agreed to indemnify SEI for up to $3.4 million of potential claims and expenses for the two-year period following the sale and we recorded this amount as a deferred gain on our balance sheet as of December 31, 2014 and September 30, 2014 as a result of these contingencies. In April 2013, May 2013 and May 2014, we received letters from SEI asserting indemnification claims under the Master Purchase Agreement. As of December 31, 2014, there has been no resolution to these claims. See Note 1 - Description of Business for additional disclosures related to this asset sale and below for additional disclosures related to the claims. | ||||
Legal Proceedings: We are subject to various legal proceedings, claims, and litigation, either asserted or unasserted that arise in the ordinary course of business. While the outcome of these matters is currently not determinable, we do not expect the resolution of these matters will have a material adverse effect on our business, financial position, results of operations, or cash flows. However, the results of these matters cannot be predicted with certainty. Professional legal fees are expensed when incurred. We accrue for contingent losses when such losses are probable and reasonably estimable. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. Should we fail to prevail in any legal matter or should several legal matters be resolved against the Company in the same reporting period, then the financial results of that particular reporting period could be materially affected. | ||||
a) Intellectual Property Lawsuits | ||||
We protect our proprietary technology by applying for patents where appropriate and, in other cases, by preserving the technology, related know-how and information as trade secrets. The success and competitive position of our product lines are impacted by our ability to obtain intellectual property protection for our research and development efforts. We have, from time to time, exchanged correspondence with third parties regarding the assertion of patent or other intellectual property rights in connection with certain of our products and processes. | ||||
b) Sumitomo Electric Industries Ltd. | ||||
On September 23, 2014, Sumitomo Electric Industries Ltd. ("Sumitomo"), filed for arbitration against EMCORE, as required under the Master Purchase Agreement between the parties (the "MPA"). Sumitomo seeks $40.0 million from EMCORE, relating to claims for quality issues, expenses related to subpoenas issued in litigation against a vendor and customers of SEDU, a claim that EMCORE made fraudulent or negligent misrepresentations to Sumitomo in the MPA, and other breach of contract claims. We believe that the claims in this matter are without merit and we intend to defend ourselves vigorously against them. However, because the matter is in a preliminary stage, we cannot assure you as to its outcome, or that an adverse decision in such action would not have a material adverse effect on our business, financial condition or results of operation. On November 14, 2014, EMCORE answered Sumitomo’s complaint and asserted several legal defenses. |
Equity
Equity | 3 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Equity [Abstract] | |||||||||||
Equity | Equity | ||||||||||
Equity Plans | |||||||||||
We provide long-term incentives to eligible officers, directors, and employees in the form of equity-based awards. We maintain three equity incentive compensation plans, collectively described below as our Equity Plans: | |||||||||||
• | the 2000 Stock Option Plan (2000 Plan), | ||||||||||
• | the 2010 Equity Incentive Plan (2010 Equity Plan), | ||||||||||
• | the 2012 Equity Incentive Plan (2012 Equity Plan). | ||||||||||
We issue new shares of common stock to satisfy awards issued under our Equity Plans. | |||||||||||
Stock Options | |||||||||||
Most of our stock options vest and become exercisable over a four to five year period and have a contractual life of 10 years. Certain stock options awarded are intended to qualify as incentive stock options pursuant to Section 422A of the Internal Revenue Code. | |||||||||||
The following table summarizes stock option activity under the Equity Plans for the three months ended December 31, 2014: | |||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average | Aggregate Intrinsic Value (*) (in thousands) | ||||||||
Remaining Contractual Life | |||||||||||
(in years) | |||||||||||
Outstanding as of September 30, 2014 | 1,431,190 | $19.06 | |||||||||
Granted | 3,200 | $5.15 | |||||||||
Exercised | (75,014 | ) | $4.61 | $ | 49 | ||||||
Forfeited | (1,650 | ) | $5.63 | ||||||||
Expired | (21,489 | ) | $23.61 | ||||||||
Outstanding as of December 31, 2014 | 1,336,237 | $19.78 | 2.75 | $ | 263 | ||||||
Exercisable as of December 31, 2014 | 1,312,833 | $20.04 | 2.69 | $ | 251 | ||||||
Vested and expected to vest as of December 31, 2014 | 1,333,059 | $19.82 | 2.74 | $ | 261 | ||||||
(*) Intrinsic value for stock options represents the “in-the-money” portion or the positive variance between a stock option's exercise price and the underlying stock price. For the three months ended December 31, 2013, the intrinsic value of options exercised was $1,000. | |||||||||||
As of December 31, 2014, there was approximately $0.2 million of unrecognized stock-based compensation expense, net of estimated forfeitures, related to non-vested stock options granted under the Equity Plans which is expected to be recognized over an estimated weighted average life of 2.5 years. | |||||||||||
Valuation Assumptions | |||||||||||
The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option valuation model, adhering to the straight-line attribution approach using the following weighted-average assumptions, of which the expected term and stock price volatility rate are highly subjective: | |||||||||||
For the Three Months Ended December 31, | |||||||||||
2014 | 2013 | ||||||||||
Black-Scholes weighted average assumptions: | |||||||||||
Expected dividend rate | — | % | — | % | |||||||
Expected stock price volatility rate | 82.5 | % | 95.7 | % | |||||||
Risk-free interest rate | 1.9 | % | 1.7 | % | |||||||
Expected term (in years) | 6 | 6 | |||||||||
Weighted average grant date fair value per share of stock options granted: | $3.63 | $ | 3.92 | ||||||||
Restricted Stock | |||||||||||
Restricted stock units (RSUs) granted under the 2010 Equity Plan and 2012 Equity Plan typically vest over 3 years and are subject to forfeiture if employment terminates prior to the lapse of the restrictions. RSUs are not considered issued or outstanding common stock until they vest. | |||||||||||
The following table summarizes the activity related to RSUs for the three months ended December 31, 2014: | |||||||||||
Restricted Stock Activity | Restricted Stock Units | ||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | ||||||||||
Non-vested as of September 30, 2014 | 966,579 | $4.71 | |||||||||
Granted | — | ||||||||||
Vested | (406,450 | ) | $4.58 | ||||||||
Forfeited | (37,950 | ) | $4.86 | ||||||||
Non-vested as of December 31, 2014 | 522,179 | $4.80 | |||||||||
As of December 31, 2014, there was approximately $1.1 million of remaining unamortized stock-based compensation expense, net of estimated forfeitures, associated with RSUs, which will be expensed over a weighted average remaining service period of approximately 1.0 years. The 0.5 million outstanding non-vested RSUs have an aggregate intrinsic value of approximately $2.8 million and a weighted average remaining contractual term of 0.5 years. For the three months ended December 31, 2014 and 2013, the intrinsic value of RSUs vested was $2.1 million and $0.7 million , respectively. Of the 0.5 million outstanding non-vested RSUs, approximately 0.5 million are expected to vest and have an aggregate intrinsic value of approximately $2.6 million and a weighted average remaining contractual term of 0.5 years. For the three months ended December 31, 2013, the weighted average grant date fair value of RSUs granted was $4.95. | |||||||||||
On December 10, 2014, in connection with the sale of the Photovoltaics Business and the change in control, 0.3 million RSU's vested. | |||||||||||
Stock-based compensation | |||||||||||
The effect of recording stock-based compensation expense was as follows: | |||||||||||
Stock-based Compensation Expense - by award type | For the Three Months Ended December 31, | ||||||||||
(in thousands) | 2014 | 2013 | |||||||||
Employee stock options | $ | 177 | $ | 49 | |||||||
Restricted stock awards and units | 1,259 | 494 | |||||||||
Employee stock purchase plan | 50 | 88 | |||||||||
401(k) match in common stock | 80 | 78 | |||||||||
Outside director fees in common stock | 208 | 110 | |||||||||
Total stock-based compensation expense | $ | 1,774 | $ | 819 | |||||||
Stock-based Compensation Expense - by expense type | For the Three Months Ended December 31, | ||||||||||
(in thousands) | 2014 | 2013 | |||||||||
Cost of revenue | $ | 104 | $ | 109 | |||||||
Selling, general, and administrative | 1,565 | 553 | |||||||||
Research and development | 105 | 157 | |||||||||
Total stock-based compensation expense | $ | 1,774 | $ | 819 | |||||||
The stock based compensation expense above relates to continuing operations. Included within discontinued operations is $0.8 million and $0.3 million of stock based compensation expense for the three months ended December 31, 2014 and 2013, respectively. | |||||||||||
Income (Loss) Per Share | |||||||||||
The following table sets forth the computation of basic and diluted net income (loss) per share: | |||||||||||
Basic and Diluted Net (Loss) Income Per Share | For the Three Months Ended December 31, | ||||||||||
(in thousands, except per share) | 2014 | 2013 | |||||||||
Numerator | |||||||||||
Loss from continuing operations | $ | (3,130 | ) | $ | (3,823 | ) | |||||
Income from discontinued operations | $ | 59,258 | $ | 1,769 | |||||||
Total | 56,128 | (2,054 | ) | ||||||||
Undistributed earnings allocated to common shareholders for basic net income (loss) per share | $ | 56,128 | $ | (2,054 | ) | ||||||
Undistributed earnings allocated to common shareholders for diluted net income (loss) per share | $ | 56,128 | $ | (2,054 | ) | ||||||
Denominator: | |||||||||||
Denominator for basic net income (loss) per share - weighted average shares outstanding | 31,217 | 29,938 | |||||||||
Dilutive options outstanding, unvested stock units and ESPP | — | — | |||||||||
Denominator for diluted net income (loss) per share - adjusted weighted average shares outstanding | 31,217 | 29,938 | |||||||||
Net income (loss) per basic and diluted shares: | |||||||||||
Continuing operations | $ | (0.10 | ) | $ | (0.13 | ) | |||||
Discontinued operations | $ | 1.9 | $ | 0.06 | |||||||
Net income (loss) per basic share | $ | 1.8 | $ | (0.07 | ) | ||||||
Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation | 2,649 | 3,049 | |||||||||
Average market price of common stock | $ | 5.29 | $ | 5.04 | |||||||
The antidilutive stock options, unvested stock and warrants were excluded from the computation of diluted net income (loss) per share due to the assumed proceeds from the award’s exercise or vesting being greater than the average market price of the common shares or due to the Company incurring a net loss for the periods presented. | |||||||||||
Employee Stock Purchase Plan | |||||||||||
We maintain an Employee Stock Purchase Plan (ESPP) that provides employees an opportunity to purchase common stock through payroll deductions. The ESPP is a 6-month duration plan with new participation periods beginning on February 25 and August 26 of each year. The purchase price is set at 85% of the average high and low market price of our common stock on either the first or last day of the participation period, whichever is lower, and contributions are limited to the lower of 10% of an employee's compensation or $25,000. | |||||||||||
Future Issuances | |||||||||||
As of December 31, 2014, we had common stock reserved for the following future issuances: | |||||||||||
Future Issuances | Number of Common Stock Shares Available for Future Issuances | ||||||||||
Exercise of outstanding stock options | 1,336,237 | ||||||||||
Unvested restricted stock units | 522,179 | ||||||||||
Purchases under the employee stock purchase plan | 1,092,983 | ||||||||||
Issuance of stock-based awards under the Equity Plans | 1,145,183 | ||||||||||
Exercise of outstanding warrants | 400,001 | ||||||||||
Purchases under the officer and director share purchase plan | 88,741 | ||||||||||
Total reserved | 4,585,324 | ||||||||||
Geographical_Information
Geographical Information | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Segment Reporting [Abstract] | |||||||||
Geographical Information | Geographical Information | ||||||||
On September 17, 2014, EMCORE entered into an Asset Purchase Agreement (the “Photovoltaics Agreement”) with SolAero pursuant to which the Company agreed to sell the Photovoltaics Business for $150.0 million in cash, subject to a working capital adjustment pursuant to the Photovoltaics Agreement. On December 10, 2014, EMCORE completed the Photovoltaics Asset Sale. Accordingly, the Company has one remaining reportable segment: Fiber Optics. See also Note 3 - Discontinued Operations for additional disclosures. | |||||||||
EMCORE's Fiber Optics business provides optical components, subsystems and systems for high-speed telecommunications, Cable Television (CATV), Wireless and Fiber-To-The-Premises (FTTP) networks, as well as products for satellite communications, video transport and specialty photonics technologies for defense and homeland security applications. | |||||||||
On October 22, 2014, EMCORE entered into an Asset Purchase Agreement (the "Digital Products Agreement") with NeoPhotonics Corporation, a Delaware corporation ("NeoPhotonics") pursuant to which the Company agreed to sell certain assets, and transferred certain liabilities of the Company's telecommunications business (collectively, the "Digital Products Business" and, the sale of the Digital Products Business, the "Digital Products Assets Sale") to NeoPhotonics for an aggregate purchase price of $17.5 million, subject to certain adjustments. On January 2, 2015, EMCORE completed the sale of the Digital Products Business. | |||||||||
The financial results of the Photovoltaics and Digital Products Businesses are presented as "discontinued operations" on the Consolidated Statements of Operations for the three months ended December 31, 2014 and 2013; and the assets and liabilities of the Digital Products Business disposed of January 2, 2015 are presented as "Assets of discontinued operations" and "Liabilities of discontinued operations" on the Consolidated Balance Sheets as of December 31, 2014 and September 30, 2014. | |||||||||
We evaluate our reportable segments pursuant to ASC 280, Segment Reporting. The Company's Chief Executive Officer is the chief operating decision maker and he assesses the performance of the operating segments and allocates resources to segments based on their business prospects, competitive factors, net revenue, operating results, and other non-GAAP financial ratios. Based on this evaluation, the Company operates as a single reportable segment. | |||||||||
Revenue: The following tables set forth revenue by geographic region with revenue assigned to geographic regions based on our customers’ billing address and excludes the discontinued operations discussed above. | |||||||||
Revenue by Geographic Region | For the three months ended December 31, | ||||||||
(in thousands) | 2014 | 2013 | |||||||
United States | $ | 13,350 | $ | 10,444 | |||||
Asia | 2,697 | 2,168 | |||||||
Europe | 2,077 | 1,664 | |||||||
Other | 292 | 387 | |||||||
Total revenue | $ | 18,416 | $ | 14,663 | |||||
Significant Customers: Significant customers are defined as customers representing greater than 10% of our consolidated revenue. Revenue from three of our customers, represented 50% of our consolidated revenue for the three months ended December 31, 2014. Revenue from three of our customers represented 44% of our consolidated revenue for the three months ended December 31, 2013. | |||||||||
Long-lived Assets: Long-lived assets consist primarily of property, plant, and equipment and also intangible assets. Long-lived assets to be disposed of as the result of the Photovoltaics and Digital Products Asset Sales were included in "Assets of discontinued operations" on the Consolidated Balance Sheet as of December 31, 2014 and September 30, 2014, and accordingly, are not included in the following table. | |||||||||
Long-lived Assets | As of | As of | |||||||
(in thousands) | December 31, 2014 | September 30, 2014 | |||||||
United States | $ | 2,302 | $ | 4,997 | |||||
International | 6,002 | 5,531 | |||||||
Long-lived assets | $ | 8,304 | $ | 10,528 | |||||
As of December 31, 2014 and September 30, 2014, approximately 28% and 47%, respectively, of our long-lived assets were located in the United States. The remaining assets are primarily located in China. As a result of the revision in the estimated amount and timing of cash flows for asset retirement obligations in the United States, the Company reduced its asset retirement obligations liability by $2.9 million with an offsetting reduction to property, plant, and equipment of $2.1 million, and operating expense of $0.8 million. See Note 12 - Commitments and Contingencies for additional information. |
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements (Policies) | 3 Months Ended | |
Dec. 31, 2014 | ||
Accounting Changes and Error Corrections [Abstract] | ||
Recent Accounting Pronouncements | There have been no recent accounting pronouncements or changes in accounting pronouncements that are of significance, or of potential significance, to us other than those discussed below: | |
• | In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters. This accounting standard update requires an entity to release into net income the entire amount of a cumulative translation adjustment related to its investment in a foreign entity when as a parent it either sells a part or all of its investment in the foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within the foreign entity. This accounting standard was implemented for our fiscal year beginning on October 1, 2014 and it had no significant impact on the Company. | |
• | In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This standard changes the criteria for reporting discontinued operations. Under the accounting standard update, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity's operations and financial results when either it qualifies as held for sale, disposed of by sale, or disposed of other than by sale. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. While early adoption is allowed, we have determined that we would not early adopt and as a result this accounting standard update will be effective for our fiscal year beginning on October 1, 2015. We are currently evaluating the impact of this accounting standard update on our Condensed Consolidated Financial Statements. | |
• | In May 2014, as part of its ongoing efforts to assist in the convergence of U.S. GAAP and International Financial Reporting Standards, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. Under the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard will be effective for us beginning October 1, 2017 and early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We anticipate this standard will not have a material impact on our Condensed Consolidated Financial Statements. | |
• | In June 2014, the FASB issued ASU No. 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period. The new standard requires a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period be accounted for as a performance condition. The guidance is effective for annual periods beginning after December 15, 2015 and interim periods within that year, and early adoption is permitted. The guidance should be applied on a prospective basis to awards that are granted or modified on or after the effective date. The guidance may be applied on a modified retrospective basis for performance targets outstanding on or after the beginning of the first annual period presented as of the date of adoption. This accounting standard update will be effective for our fiscal year beginning October 1, 2016. We are currently evaluating the impact of this accounting standard update on our Consolidated Financial Statements. | |
• | In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. The standard provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. In addition, the standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. The guidance is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. This accounting standard update will be effective for our fiscal year beginning October 1, 2017. We are currently evaluating the impact of this accounting standard update on our Consolidated Financial Statements. | |
Fair Value of Financial Instruments | ASC 820, Fair Value Measurements, establishes a valuation hierarchy for disclosure of the inputs to valuation techniques used to measure fair value. This standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: | |
• | Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. We classify investments within Level 1 if quoted prices are available in active markets. | |
• | Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly, through market corroboration, for substantially the full term of the financial instrument. We classify items in Level 2 if the investments are valued using observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. | |
• | Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. A financial asset or liability's classification within this hierarchy is determined based on the lowest level input that is significant to the fair value measurement. We do not hold any financial assets or liabilities within Level 3. | |
Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. | ||
Cash and Cash Equivalents | Cash consists primarily of bank deposits or, occasionally, highly liquid short-term investments with a maturity of three months or less at the time of purchase. | |
Restricted Cash | Restricted cash represents temporarily restricted deposits held as compensating balances against short-term borrowing arrangements. | |
Derivatives | All of our warrants meet the classification requirements for liability accounting pursuant to ASC 815, Derivatives and Hedging. Each quarter, we expect an impact on our statement of operations and comprehensive income (loss) when we record the change in fair value of our outstanding warrants using the Monte Carlo option valuation model. The Monte Carlo option valuation model is used since it allows the valuation of each warrant to factor in the value associated with our right to effect a mandatory exercise of each warrant. The valuation model requires the input of subjective assumptions, including the warrant's expected life and the price volatility of the underlying stock. The change in the fair value of our warrants has been primarily due to the change in the closing price of our common stock. | |
Receivables | Unbilled accounts receivable represents revenue recognized but not yet billed as of the period ended. Billings on contracts using the percentage-of-completion method usually occur upon completion of predetermined contract milestones or other contract terms, such as customer approval. The allowance for doubtful accounts is based on the age of receivables and a specific identification of receivables considered at risk of collection. | |
Severance and Restructuring Accruals | Expense related to severance accruals is included in selling, general, and administrative expense on our statement of operations and comprehensive income (loss). | |
Asset Retirement Obligations | We have known conditional asset retirement conditions, such as certain asset decommissioning and restoration of rented facilities to be performed in the future. Our asset retirement obligations include assumptions related to renewal option periods for those facilities where we expect to extend lease terms. The Company recognizes its estimate of the fair value of its asset retirement obligations in the period incurred in long-term liabilities. The fair value of the asset retirement obligations is also capitalized as property, plant and equipment. | |
In future periods, the asset retirement obligation is accreted for the change in its present value and capitalized costs are depreciated over the useful life of the related assets. If the fair value of the estimated asset retirement obligation changes, an adjustment will be recorded to both the asset retirement obligation and the asset retirement capitalized cost. Revisions in estimated liabilities can result from revisions of estimated inflation rates, changes in estimated retirement costs, and changes in the estimated timing of settling asset retirement obligations. | ||
Legal Proceedings | Professional legal fees are expensed when incurred. We accrue for contingent losses when such losses are probable and reasonably estimable. | |
Segment Reporting | We evaluate our reportable segments pursuant to ASC 280, Segment Reporting. The Company's Chief Executive Officer is the chief operating decision maker and he assesses the performance of the operating segments and allocates resources to segments based on their business prospects, competitive factors, net revenue, operating results, and other non-GAAP financial ratios. Based on this evaluation, the Company operates as a single reportable segment. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Photovoltaics Business | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Schedule of Discontinued Operations, Balance Sheet and Income Statement | The following table presents the statements of operations for the discontinued operations of the Photovoltaics Business | |||||||
from October 1, 2014 to December 10, 2014 and for the three months ended December 31, 2013. | ||||||||
(in thousands) | For the three months ended December 31, | |||||||
2014 | 2013 | |||||||
Revenue | $ | 12,614 | $ | 20,919 | ||||
Cost of revenue | 8,245 | 13,180 | ||||||
Gross profit | 4,369 | 7,739 | ||||||
Operating expense | 2,703 | 1,549 | ||||||
Other income | 779 | — | ||||||
Gain on sale of discontinued operations | 87,022 | — | ||||||
Income from discontinued operations before income tax | 89,467 | 6,190 | ||||||
Income tax expense | (30,203 | ) | (2,347 | ) | ||||
Income from discontinued operations, net of tax | $ | 59,264 | $ | 3,843 | ||||
The following table presents the aggregate carrying amounts of the major classes of assets and liabilities related to the Photovoltaics business as of December 31, 2014 and September 30, 2014. | ||||||||
As of | As of | |||||||
(in thousands) | December 31, | September 30, | ||||||
2014 | 2014 | |||||||
Assets of discontinued operations: | ||||||||
Accounts receivable, net of allowance of $0 | $ | — | $ | 17,827 | ||||
Inventory | — | 7,203 | ||||||
Prepaid expenses and other current assets | — | 1,512 | ||||||
Current assets of discontinued operations | — | 26,542 | ||||||
Property, plant and equipment, net | — | 26,660 | ||||||
Goodwill | — | 20,384 | ||||||
Other non-current assets, net | — | 254 | ||||||
Non-current assets of discontinued operations | — | 47,298 | ||||||
Total assets of discontinued operations | $ | — | $ | 73,840 | ||||
Liabilities of discontinued operations: | ||||||||
Accounts payable | $ | — | $ | 4,640 | ||||
Accrued expenses and other current liabilities | — | 5,398 | ||||||
Current liabilities of discontinued operations | — | 10,038 | ||||||
Asset retirement obligations | — | 720 | ||||||
Non-current liabilities of discontinued operations | — | 720 | ||||||
Total liabilities of discontinued operations | $ | — | $ | 10,758 | ||||
Digital Products Business | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Schedule of Discontinued Operations, Balance Sheet and Income Statement | The following table presents the statements of operations for the discontinued operations of the Digital Products Business: | |||||||
(in thousands) | For the three months ended December 31, | |||||||
2014 | 2013 | |||||||
Revenue | $ | 11,815 | $ | 8,629 | ||||
Cost of revenue | 9,112 | 8,624 | ||||||
Gross profit | 2,703 | 5 | ||||||
Operating expense | 2,712 | 3,346 | ||||||
Loss from discontinued operations before income tax | (9 | ) | (3,341 | ) | ||||
Income tax benefit | 3 | 1,267 | ||||||
Loss from discontinued operations | $ | (6 | ) | $ | (2,074 | ) | ||
The following table presents the aggregate carrying amounts of the major classes of assets and liabilities related to the Digital Products Business as of December 31, 2014 and September 30, 2014. | ||||||||
As of | As of | |||||||
(in thousands) | December 31, | September 30, | ||||||
2014 | 2014 | |||||||
Assets held for sale: | ||||||||
Accounts receivable, net of allowance of $25 and $17, respectively | $ | 9,992 | $ | 14,268 | ||||
Inventory | 2,905 | 3,225 | ||||||
Prepaid expenses and other current assets | 30 | 30 | ||||||
Current assets of discontinued operations | 12,927 | 17,523 | ||||||
Property, plant and equipment, net | 7,795 | 7,881 | ||||||
Other intangible assets, net | 1,028 | 1,060 | ||||||
Non-current assets of discontinued operations | 8,823 | 8,941 | ||||||
Total assets of discontinued operations | $ | 21,750 | $ | 26,464 | ||||
Liabilities held for sale: | ||||||||
Accounts payable | 7,894 | 10,848 | ||||||
Accrued expenses and other current liabilities | 11 | 38 | ||||||
Current liabilities of discontinued operations | $ | 7,905 | $ | 10,886 | ||||
Fair_Value_Accounting_Tables
Fair Value Accounting (Tables) | 3 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||
Fair Value Measurements, Recurring | The following table lists our financial assets and liabilities that are measured at fair value on a recurring basis: | |||||||||||||
Fair Value Measurement | ||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | |||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Remaining Inputs | Significant Unobservable Inputs | Total | |||||||||||
As of December 31, 2014 | ||||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 147,576 | — | — | $ | 147,576 | ||||||||
Restricted cash | 407 | — | — | 407 | ||||||||||
Liabilities: | ||||||||||||||
Warrant liability | — | 86 | — | 86 | ||||||||||
As of September 30, 2014 | ||||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 20,687 | — | — | $ | 20,687 | ||||||||
Restricted cash | 1,482 | — | — | 1,482 | ||||||||||
Liabilities: | ||||||||||||||
Warrant liability | — | 122 | — | 122 | ||||||||||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | The components of accounts receivable consisted of the following: | |||||||
As of | As of | |||||||
(in thousands) | December 31, | September 30, 2014 | ||||||
2014 | ||||||||
Accounts receivable | $ | 14,971 | $ | 12,252 | ||||
Accounts receivable – unbilled | 620 | 633 | ||||||
Accounts receivable, gross | 15,591 | 12,885 | ||||||
Allowance for doubtful accounts | (275 | ) | (116 | ) | ||||
Accounts receivable, net | $ | 15,316 | $ | 12,769 | ||||
Inventory_Tables
Inventory (Tables) | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory | The components of inventory consisted of the following: | |||||||
As of | As of | |||||||
(in thousands) | December 31, | September 30, 2014 | ||||||
2014 | ||||||||
Raw materials | $ | 7,503 | $ | 7,255 | ||||
Work in-process | 4,467 | 4,403 | ||||||
Finished goods | 3,956 | 3,986 | ||||||
Inventory | $ | 15,926 | $ | 15,644 | ||||
Property_Plant_and_Equipment_n1
Property, Plant, and Equipment, net (Tables) | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Schedule of Property, Plant and Equipment | The components of property, plant, and equipment, net consisted of the following: | |||||||
As of | As of | |||||||
(in thousands) | December 31, | September 30, 2014 | ||||||
2014 | ||||||||
Equipment | $ | 6,872 | $ | 7,328 | ||||
Furniture and fixtures | 38 | 42 | ||||||
Computer hardware and software | 688 | 749 | ||||||
Leasehold improvements | 374 | 2,278 | ||||||
Construction in progress | 256 | 49 | ||||||
Property, plant, and equipment, net | $ | 8,228 | $ | 10,446 | ||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Intangible Assets [Abstract] | |||||||||||||||||||||||||
Schedule of Carrying Value of Intangible Assets | The following table sets forth the carrying value of intangible assets : | ||||||||||||||||||||||||
(in thousands) | As of December 31, 2014 | As of September 30, 2014 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross Assets | Accumulated | Net | ||||||||||||||||||||
Assets | Amortization | Assets | Amortization | Assets | |||||||||||||||||||||
Fiber Optics: | |||||||||||||||||||||||||
Patents | 4,697 | (4,621 | ) | 76 | 4,697 | (4,615 | ) | 82 | |||||||||||||||||
Total | $ | 4,697 | $ | (4,621 | ) | $ | 76 | $ | 4,697 | $ | (4,615 | ) | $ | 82 | |||||||||||
Schedule of Estimated Future Amortization Expense | Based on the carrying amount of our intangible assets as of December 31, 2014, the estimated future amortization expense is as follows: | ||||||||||||||||||||||||
Estimated Future Amortization Expense | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Nine months ended September 30, 2015 | $ | 18 | |||||||||||||||||||||||
Fiscal year ended September 30, 2016 | 25 | ||||||||||||||||||||||||
Fiscal year ended September 30, 2017 | 33 | ||||||||||||||||||||||||
Fiscal year ended September 30, 2018 | — | ||||||||||||||||||||||||
Fiscal year ended September 30, 2019 and thereafter | — | ||||||||||||||||||||||||
Total | $ | 76 | |||||||||||||||||||||||
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Schedule of Accrued Liabilities | The components of accrued expenses and other current liabilities consisted of the following: | |||||||
As of | As of | |||||||
(in thousands) | December 31, | September 30, 2014 | ||||||
2014 | ||||||||
Compensation | $ | 5,457 | $ | 1,797 | ||||
Warranty | 1,904 | 2,285 | ||||||
Termination fee | 2,775 | 2,775 | ||||||
Professional fees | 509 | 2,181 | ||||||
Royalty | 13 | — | ||||||
Customer deposits | 551 | 593 | ||||||
Deferred revenue | 49 | 97 | ||||||
Self insurance | 1,249 | 1,470 | ||||||
Income and other taxes | 5,618 | 1,433 | ||||||
Loss on sale contracts | 204 | 119 | ||||||
Severance accruals | 2,061 | 1,317 | ||||||
Loss on inventory purchase commitments | — | 306 | ||||||
Amounts owed to SolAero | 3,767 | — | ||||||
Other | 1,069 | 836 | ||||||
Accrued expenses and other current liabilities | $ | 25,226 | $ | 15,209 | ||||
Schedule of Restructuring and Related Costs | The following table summarizes the changes in the severance-related accrual accounts: | |||||||
(in thousands) | Severance-related accruals | |||||||
Balance as of September 30, 2014 | $ | 1,317 | ||||||
Expense - charged to accrual | 965 | |||||||
Payments and accrual adjustments | (221 | ) | ||||||
Balance as of December 31, 2014 | $ | 2,061 | ||||||
Schedule of Product Warranty Accruals | The following table summarizes the changes in our product warranty accrual accounts: | |||||||
Product Warranty Accruals | For the three months ended December 31, | |||||||
(in thousands) | 2014 | 2013 | ||||||
Balance at beginning of period | $ | 2,816 | $ | 3,881 | ||||
Provision for product warranty - expense | 402 | — | ||||||
Adjustments and utilization of warranty accrual | (783 | ) | (218 | ) | ||||
Balance at end of period | $ | 2,435 | $ | 3,663 | ||||
Current portion | $ | 1,904 | $ | 3,132 | ||||
Non-current portion | 531 | 531 | ||||||
Product warranty liability at end of period | $ | 2,435 | $ | 3,663 | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Summary of Asset Retirement Obligations Activity | The following table summarizes asset retirement obligations activity. | |||
Asset retirement obligations: | As of December 31, | |||
(in thousands) | 2014 | |||
Balance at beginning of period | $ | 5,263 | ||
Asset retirement obligations reclassified to liabilities of discontinued operations | (720 | ) | ||
Subtotal | 4,543 | |||
Accretion expense | 16 | |||
Revision in estimated cash flows | (2,879 | ) | ||
Balance at end of period | $ | 1,680 | ||
Equity_Tables
Equity (Tables) | 3 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Equity [Abstract] | |||||||||||
Schedule of Stock Options Activity | The following table summarizes stock option activity under the Equity Plans for the three months ended December 31, 2014: | ||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average | Aggregate Intrinsic Value (*) (in thousands) | ||||||||
Remaining Contractual Life | |||||||||||
(in years) | |||||||||||
Outstanding as of September 30, 2014 | 1,431,190 | $19.06 | |||||||||
Granted | 3,200 | $5.15 | |||||||||
Exercised | (75,014 | ) | $4.61 | $ | 49 | ||||||
Forfeited | (1,650 | ) | $5.63 | ||||||||
Expired | (21,489 | ) | $23.61 | ||||||||
Outstanding as of December 31, 2014 | 1,336,237 | $19.78 | 2.75 | $ | 263 | ||||||
Exercisable as of December 31, 2014 | 1,312,833 | $20.04 | 2.69 | $ | 251 | ||||||
Vested and expected to vest as of December 31, 2014 | 1,333,059 | $19.82 | 2.74 | $ | 261 | ||||||
(*) Intrinsic value for stock options represents the “in-the-money” portion or the positive variance between a stock option's exercise price and the underlying stock price. For the three months ended December 31, 2013, the intrinsic value of options exercised was $1,000. | |||||||||||
Schedule of Valuation Assumptions | The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option valuation model, adhering to the straight-line attribution approach using the following weighted-average assumptions, of which the expected term and stock price volatility rate are highly subjective: | ||||||||||
For the Three Months Ended December 31, | |||||||||||
2014 | 2013 | ||||||||||
Black-Scholes weighted average assumptions: | |||||||||||
Expected dividend rate | — | % | — | % | |||||||
Expected stock price volatility rate | 82.5 | % | 95.7 | % | |||||||
Risk-free interest rate | 1.9 | % | 1.7 | % | |||||||
Expected term (in years) | 6 | 6 | |||||||||
Weighted average grant date fair value per share of stock options granted: | $3.63 | $ | 3.92 | ||||||||
Schedule of Restricted Stock Activity | The following table summarizes the activity related to RSUs for the three months ended December 31, 2014: | ||||||||||
Restricted Stock Activity | Restricted Stock Units | ||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | ||||||||||
Non-vested as of September 30, 2014 | 966,579 | $4.71 | |||||||||
Granted | — | ||||||||||
Vested | (406,450 | ) | $4.58 | ||||||||
Forfeited | (37,950 | ) | $4.86 | ||||||||
Non-vested as of December 31, 2014 | 522,179 | $4.80 | |||||||||
Schedule of Stock-based Compensation Expense - By Award Type | The effect of recording stock-based compensation expense was as follows: | ||||||||||
Stock-based Compensation Expense - by award type | For the Three Months Ended December 31, | ||||||||||
(in thousands) | 2014 | 2013 | |||||||||
Employee stock options | $ | 177 | $ | 49 | |||||||
Restricted stock awards and units | 1,259 | 494 | |||||||||
Employee stock purchase plan | 50 | 88 | |||||||||
401(k) match in common stock | 80 | 78 | |||||||||
Outside director fees in common stock | 208 | 110 | |||||||||
Total stock-based compensation expense | $ | 1,774 | $ | 819 | |||||||
Schedule Stock-based Compensation Expense - By Expense Type | |||||||||||
Stock-based Compensation Expense - by expense type | For the Three Months Ended December 31, | ||||||||||
(in thousands) | 2014 | 2013 | |||||||||
Cost of revenue | $ | 104 | $ | 109 | |||||||
Selling, general, and administrative | 1,565 | 553 | |||||||||
Research and development | 105 | 157 | |||||||||
Total stock-based compensation expense | $ | 1,774 | $ | 819 | |||||||
Schedule of Earnings Per Share, Basic and Diluted | Income (Loss) Per Share | ||||||||||
The following table sets forth the computation of basic and diluted net income (loss) per share: | |||||||||||
Basic and Diluted Net (Loss) Income Per Share | For the Three Months Ended December 31, | ||||||||||
(in thousands, except per share) | 2014 | 2013 | |||||||||
Numerator | |||||||||||
Loss from continuing operations | $ | (3,130 | ) | $ | (3,823 | ) | |||||
Income from discontinued operations | $ | 59,258 | $ | 1,769 | |||||||
Total | 56,128 | (2,054 | ) | ||||||||
Undistributed earnings allocated to common shareholders for basic net income (loss) per share | $ | 56,128 | $ | (2,054 | ) | ||||||
Undistributed earnings allocated to common shareholders for diluted net income (loss) per share | $ | 56,128 | $ | (2,054 | ) | ||||||
Denominator: | |||||||||||
Denominator for basic net income (loss) per share - weighted average shares outstanding | 31,217 | 29,938 | |||||||||
Dilutive options outstanding, unvested stock units and ESPP | — | — | |||||||||
Denominator for diluted net income (loss) per share - adjusted weighted average shares outstanding | 31,217 | 29,938 | |||||||||
Net income (loss) per basic and diluted shares: | |||||||||||
Continuing operations | $ | (0.10 | ) | $ | (0.13 | ) | |||||
Discontinued operations | $ | 1.9 | $ | 0.06 | |||||||
Net income (loss) per basic share | $ | 1.8 | $ | (0.07 | ) | ||||||
Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation | 2,649 | 3,049 | |||||||||
Average market price of common stock | $ | 5.29 | $ | 5.04 | |||||||
Schedule of Common Stock Reserved for Future Issuances | As of December 31, 2014, we had common stock reserved for the following future issuances: | ||||||||||
Future Issuances | Number of Common Stock Shares Available for Future Issuances | ||||||||||
Exercise of outstanding stock options | 1,336,237 | ||||||||||
Unvested restricted stock units | 522,179 | ||||||||||
Purchases under the employee stock purchase plan | 1,092,983 | ||||||||||
Issuance of stock-based awards under the Equity Plans | 1,145,183 | ||||||||||
Exercise of outstanding warrants | 400,001 | ||||||||||
Purchases under the officer and director share purchase plan | 88,741 | ||||||||||
Total reserved | 4,585,324 | ||||||||||
Geographical_Information_Table
Geographical Information (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Segment Reporting [Abstract] | |||||||||
Schedule of revenue by geographic region | The following tables set forth revenue by geographic region with revenue assigned to geographic regions based on our customers’ billing address and excludes the discontinued operations discussed above. | ||||||||
Revenue by Geographic Region | For the three months ended December 31, | ||||||||
(in thousands) | 2014 | 2013 | |||||||
United States | $ | 13,350 | $ | 10,444 | |||||
Asia | 2,697 | 2,168 | |||||||
Europe | 2,077 | 1,664 | |||||||
Other | 292 | 387 | |||||||
Total revenue | $ | 18,416 | $ | 14,663 | |||||
Schedule of Long-lived Assets by Geographic Areas | Long-lived assets consist primarily of property, plant, and equipment and also intangible assets. Long-lived assets to be disposed of as the result of the Photovoltaics and Digital Products Asset Sales were included in "Assets of discontinued operations" on the Consolidated Balance Sheet as of December 31, 2014 and September 30, 2014, and accordingly, are not included in the following table. | ||||||||
Long-lived Assets | As of | As of | |||||||
(in thousands) | December 31, 2014 | September 30, 2014 | |||||||
United States | $ | 2,302 | $ | 4,997 | |||||
International | 6,002 | 5,531 | |||||||
Long-lived assets | $ | 8,304 | $ | 10,528 | |||||
Description_of_Business_Other_
Description of Business (Other Disclosures) (Details) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2014 | |
segment | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of reporting segments | 1 | 1 |
Description_of_Business_Asset_
Description of Business Asset Sales (Details) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Oct. 22, 2014 | Dec. 10, 2014 |
Photovoltaics Business | Photovoltaics | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Asset purchase agreement, selling price | $150 | |
Digital Products Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Asset purchase agreement, selling price | 17.5 | |
Asset sale, cash consideration | 1.5 | |
Asset sale, promissory note, principal amount | $16 |
Description_of_Business_Sale_o
Description of Business (Sale of Fiber Optics-related Assets) (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
7-May-12 | Sep. 30, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Deferred gain associated with sale of assets | $3,400,000 | $3,400,000 | ||
Sumitomo Electric Industries, LTD | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on sale of assets | 2,800,000 | |||
Indemnification associated with sale of assets (up to $3.4 million) | 3,400,000 | |||
Indemnification period | 2 years | |||
Proceeds from sale of assets | 13,100,000 | |||
Cash held in escrow | 2,600,000 | |||
Reduction of purchase price | 1,100,000 | |||
Escrow Receivable | 1,500,000 | |||
Sumitomo Electric Industries, LTD | Indemnification Obligation | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Deferred gain associated with sale of assets | $3,400,000 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Oct. 22, 2014 | Sep. 30, 2014 | Dec. 10, 2014 | |
Spain And Netherlands | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Other income | $700,000 | ||||
Photovoltaics Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Goodwill | 0 | 20,384,000 | |||
Other income | 779,000 | 0 | |||
Digital Products Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Asset purchase agreement, selling price | 17,500,000 | ||||
Asset sale, cash consideration | 1,500,000 | ||||
Asset sale, promissory note, principal amount | 16,000,000 | ||||
Asset sale, promissory note, interest rate, year one | 0.05 | ||||
Asset sale, promissory note, interest rate, year two | 0.13 | ||||
Photovoltaics | Photovoltaics Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Asset purchase agreement, selling price | 150,000,000 | ||||
Net assets sold | 60,300,000 | ||||
Transaction costs incurred in sale of business | 2,700,000 | ||||
Gain on sale of Photovoltaics Business | $56,800,000 |
Discontinued_Operations_Balanc
Discontinued Operations Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Assets of discontinued operations: | ||
Current assets of discontinued operations | $12,927 | $44,065 |
Non-current assets of discontinued operations | 8,823 | 56,239 |
Liabilities of discontinued operations: | ||
Current liabilities of discontinued operations | 7,905 | 20,924 |
Non-current liabilities of discontinued operations | 0 | 720 |
Photovoltaics Business | ||
Assets of discontinued operations: | ||
Accounts receivable, net of allowance | 0 | 17,827 |
Inventory | 0 | 7,203 |
Prepaid expenses and other current assets | 0 | 1,512 |
Current assets of discontinued operations | 0 | 26,542 |
Property, plant and equipment, net | 0 | 26,660 |
Goodwill | 0 | 20,384 |
Other non-current assets, net | 0 | 254 |
Non-current assets of discontinued operations | 0 | 47,298 |
Total assets of discontinued operations | 0 | 73,840 |
Allowance | 0 | 0 |
Liabilities of discontinued operations: | ||
Accounts payable | 0 | 4,640 |
Accrued expenses and other current liabilities | 0 | 5,398 |
Current liabilities of discontinued operations | 0 | 10,038 |
Asset retirement obligations | 0 | 720 |
Non-current liabilities of discontinued operations | 0 | 720 |
Total liabilities of discontinued operations | 0 | 10,758 |
Digital Products Business | ||
Assets of discontinued operations: | ||
Accounts receivable, net of allowance | 9,992 | 14,268 |
Inventory | 2,905 | 3,225 |
Prepaid expenses and other current assets | 30 | 30 |
Current assets of discontinued operations | 12,927 | 17,523 |
Property, plant and equipment, net | 7,795 | 7,881 |
Other intangible assets, net | 1,028 | 1,060 |
Non-current assets of discontinued operations | 8,823 | 8,941 |
Total assets of discontinued operations | 21,750 | 26,464 |
Allowance | 25 | 17 |
Liabilities of discontinued operations: | ||
Accounts payable | 7,894 | 10,848 |
Accrued expenses and other current liabilities | 11 | 38 |
Current liabilities of discontinued operations | $7,905 | $10,886 |
Discontinued_Operations_Income
Discontinued Operations Income Statements (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Photovoltaics Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue | $12,614 | $20,919 |
Cost of revenue | 8,245 | 13,180 |
Gross profit | 4,369 | 7,739 |
Operating expense | 2,703 | 1,549 |
Other income | 779 | 0 |
Gain on sale of discontinued operations | 87,022 | 0 |
Income from discontinued operations before income tax | 89,467 | 6,190 |
Income tax expense | -30,203 | -2,347 |
Income from discontinued operations, net of tax | 59,264 | 3,843 |
Digital Products Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue | 11,815 | 8,629 |
Cost of revenue | 9,112 | 8,624 |
Gross profit | 2,703 | 5 |
Operating expense | 2,712 | 3,346 |
Income from discontinued operations before income tax | -9 | -3,341 |
Income tax expense | 3 | 1,267 |
Income from discontinued operations, net of tax | ($6) | ($2,074) |
Fair_Value_Accounting_Fair_Val
Fair Value Accounting (Fair Value Measurement) (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||||
Assets: | ||||
Cash and cash equivalents | $147,576 | $20,687 | $18,144 | $16,104 |
Restricted cash | 407 | 1,482 | ||
Liabilities: | ||||
Warrant liability | 86 | 122 | ||
Recurring | ||||
Assets: | ||||
Cash and cash equivalents | 147,576 | 20,687 | ||
Restricted cash | 407 | 1,482 | ||
Liabilities: | ||||
Warrant liability | 86 | 122 | ||
Recurring | Level 1 Quoted Prices in Active Markets for Identical Assets | ||||
Assets: | ||||
Cash and cash equivalents | 147,576 | 20,687 | ||
Restricted cash | 407 | 1,482 | ||
Liabilities: | ||||
Warrant liability | 0 | 0 | ||
Recurring | Level 2 Significant Other Observable Remaining Inputs | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Liabilities: | ||||
Warrant liability | 86 | 122 | ||
Recurring | Level 3 Significant Unobservable Inputs | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Liabilities: | ||||
Warrant liability | $0 | $0 |
Fair_Value_Accounting_Other_Di
Fair Value Accounting (Other Disclosure) (Details) | Dec. 31, 2014 | Sep. 30, 2014 |
Fair Value Disclosures [Abstract] | ||
Number of outstanding warrants (in shares) | 400,001 | 400,001 |
Accounts_Receivable_Schedule_o
Accounts Receivable (Schedule of Components of Accounts Receivable) (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Accounts receivable | $14,971 | $12,252 |
Accounts receivable – unbilled | 620 | 633 |
Accounts receivable, gross | 15,591 | 12,885 |
Allowance for doubtful accounts | -275 | -116 |
Accounts receivable, net | $15,316 | $12,769 |
Accounts_Receivable_Narrative_
Accounts Receivable Narrative (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ||
Accounts receivable, gross, using percentage of completion method | $0.60 | $0.70 |
Billed contracts receivable, using percentage of completion method | 0 | 0.1 |
Unbilled contracts receivable, using percentage of completion method | $0.60 | $0.60 |
Inventory_Schedule_of_Componen
Inventory (Schedule of Components of Inventory) (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $7,503 | $7,255 |
Work in-process | 4,467 | 4,403 |
Finished goods | 3,956 | 3,986 |
Inventory | $15,926 | $15,644 |
Property_Plant_and_Equipment_n2
Property, Plant, and Equipment, net (Property, Plant, and Equipment, Net) (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, net | $8,228 | $10,446 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, net | 6,872 | 7,328 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, net | 38 | 42 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, net | 688 | 749 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, net | 374 | 2,278 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, net | $256 | $49 |
Property_Plant_and_Equipment_n3
Property, Plant, and Equipment, net Narrative (Details) (USD $) | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Gain from change in estimate on ARO obligation | $2,879,000 | ||
Asset retirement obligation, revision in estimated cash flows | 845,000 | 0 | |
Accumulated depreciation | 23,800,000 | 21,500,000 | |
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Decrease in property, plant, and equipment | ($2,100,000) |
Intangible_Assets_Schedule_by_
Intangible Assets (Schedule by Reporting Segment) (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | $4,697 | $4,697 |
Accumulated Amortization | -4,621 | -4,615 |
Net Assets | 76 | 82 |
Estimated Future Amortization Expense | ||
Nine months ended September 30, 2015 | 18 | |
Fiscal year ended September 30, 2016 | 25 | |
Fiscal year ended September 30, 2017 | 33 | |
Fiscal year ended September 30, 2018 | 0 | |
Fiscal year ended September 30, 2019 and thereafter | 0 | |
Net Assets | 76 | 82 |
Fiber Optics | Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 4,697 | 4,697 |
Accumulated Amortization | -4,621 | -4,615 |
Net Assets | 76 | 82 |
Estimated Future Amortization Expense | ||
Net Assets | $76 | $82 |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities (Schedule of Accrued Liabilities) (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Payables and Accruals [Abstract] | |||
Compensation | $5,457 | $1,797 | |
Warranty | 1,904 | 2,285 | 3,132 |
Termination fee | 2,775 | 2,775 | |
Professional fees | 509 | 2,181 | |
Royalty | 13 | 0 | |
Customer deposits | 551 | 593 | |
Deferred revenue | 49 | 97 | |
Self insurance | 1,249 | 1,470 | |
Income and other taxes | 5,618 | 1,433 | |
Loss on sale contracts | 204 | 119 | |
Severance accruals | 2,061 | 1,317 | |
Loss on inventory purchase commitments | 0 | 306 | |
Amounts owed to SolAero | 3,767 | 0 | |
Other | 1,069 | 836 | |
Accrued expenses and other current liabilities | $25,226 | $15,209 |
Accrued_Expenses_and_Other_Cur3
Accrued Expenses and Other Current Liabilities (Income and other taxes) (Details) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Payables and Accruals [Abstract] | ||
Income tax benefit | $1,912,000 | $1,080,000 |
Discontinued operations, tax effect | 30,200,000 | |
Discontinued Operation, Deferred Income Tax Expense Benefit, Discontinued Operations | $24,100,000 |
Accrued_Expenses_and_Other_Cur4
Accrued Expenses and Other Current Liabilities (Severance and Restructuring Accruals) (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended |
Dec. 31, 2013 | Sep. 17, 2014 | Sep. 30, 2014 | Dec. 10, 2014 | Dec. 31, 2014 | |
Chief Operating Officer | |||||
Severance and restructuring accruals: | |||||
Estimated charge related to separation agreement | $500,000 | ||||
Chief Executive Officer | |||||
Severance and restructuring accruals: | |||||
Estimated charge related to separation agreement | 800,000 | ||||
Resignation period following replacement selection | 15 days | ||||
Continuation of base salary period | 602 days | ||||
Continuation of benefits, period | 18 months | ||||
Outplacement services, period | 1 year | ||||
Outplacement services, value | 15,000 | ||||
Chief Administrative Officer | |||||
Severance and restructuring accruals: | |||||
Estimated charge related to separation agreement | 600,000 | ||||
Continuation of base salary period | 518 days | ||||
Continuation of benefits, period | 18 months | ||||
Outplacement services, period | 1 year | ||||
Outplacement services, value | 15,000 | ||||
Chief Counsel and Secretary | |||||
Severance and restructuring accruals: | |||||
Estimated charge related to separation agreement | 500,000 | ||||
Continuation of base salary period | 476 days | ||||
Continuation of benefits, period | 18 days | ||||
Outplacement services, period | 1 year | ||||
Outplacement services, value | $15,000 |
Accrued_Expenses_and_Other_Cur5
Accrued Expenses and Other Current Liabilities (Schedule of Restructuring and Related Costs) (Details) (Severance-related accruals, USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Severance-related accruals | |
Restructuring Reserve [Roll Forward] | |
Balance as of September 30, 2014 | $1,317 |
Expense - charged to accrual | 965 |
Payments and accrual adjustments | -221 |
Balance as of December 31, 2014 | $2,061 |
Accrued_Expenses_and_Other_Cur6
Accrued Expenses and Other Current Liabilities (Schedule of Product Warranty Accruals) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
Schedule of Product Warranty Accruals [Abstract] | |||
Balance at beginning of period | $2,816 | $3,881 | |
Provision for product warranty - expense | 402 | 0 | |
Adjustments and utilization of warranty accrual | -783 | -218 | |
Balance at end of period | 2,435 | 3,663 | |
Current portion | 1,904 | 3,132 | 2,285 |
Non-current portion | $531 | $531 |
Accrued_Expenses_and_Other_Cur7
Accrued Expenses and Other Current Liabilities Professional Fees (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Professional fees | $509 | $2,181 |
Photovoltaics Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Professional fees | $1,800 |
Credit_Facilities_Details
Credit Facilities (Details) (Revolving Credit Facility, USD $) | Dec. 31, 2014 |
letter_of_credit | |
LIBOR Rate Loan | |
Line of Credit Facility [Line Items] | |
Line of credit facility, maximum borrowing capacity | $35,000,000 |
Credit facility, interest rate on outstanding balance | 3.30% |
Standby letters of credit, total amount outstanding | 1,500,000 |
Number of standby letters of credit outstanding | 6 |
Sixth Amendment | |
Line of Credit Facility [Line Items] | |
Line of credit facility, maximum borrowing capacity | $15,000,000 |
Income_and_other_Taxes_Narrati
Income and other Taxes Narrative (Details) (USD $) | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ||||
Discontinued Operation, Deferred Income Tax Expense Benefit, Discontinued Operations | $24,100,000 | |||
Deferred tax valuation allowance release | 24,080,000 | 0 | ||
Income tax benefit | 1,912,000 | 1,080,000 | ||
Discontinued operations, tax effect | 30,200,000 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 1,100,000 | |||
Effective Income Tax Rate Reconciliation, Percent | 37.90% | 22.00% | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 462,000 | 445,000 | 400,000 | |
Income tax credits and adjustments | $600,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Other Disclosures) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 23, 2014 | Oct. 01, 2014 | |
Loss Contingencies [Line Items] | |||||
Operating leases, rent expense, net | $400,000 | $400,000 | |||
Fair value assumptions, credit adjusted risk-free rate, range minimal amount | 3.25% | ||||
Fair value assumptions, credit adjusted risk-free rate, range maximum amount | 5.78% | ||||
Accretion expense | 16,000 | 44,000 | |||
Gain from change in estimate on ARO obligation | 2,879,000 | ||||
Asset retirement obligation, revision in estimated cash flows | 845,000 | 0 | |||
Business combination, indemnification assets, range of outcomes, value (up to $3.4 million) | 3,400,000 | ||||
Business combination, indemnification duration, period taken into account for | 2 years | ||||
Leasehold Improvements | |||||
Loss Contingencies [Line Items] | |||||
Decrease in property, plant, and equipment | -2,100,000 | ||||
Sumitomo Electric Industries, LTD | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, damages sought | $40,000,000 | ||||
Buildings | Property Subject to Operating Lease | |||||
Loss Contingencies [Line Items] | |||||
Number of leased buildings | 6 | ||||
Lease term | 3 years | ||||
Operating lease, term extension, option to extend | 3 years |
Commitments_and_Contingencies_2
Commitments and Contingencies Asset Retirement Obligation (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
Asset retirement obligations: | |||
Asset retirement obligation, beginning balance | $5,263 | ||
Asset retirement obligations reclassified to liabilities of discontinued operations | 720 | ||
Asset retirement obligation, including discontinued operations | 4,543 | ||
Accretion expense | 16 | 44 | |
Revision in estimated cash flows | -2,879 | ||
Asset retirement obligation, ending balance | $1,680 |
Equity_Narrative_Details
Equity Narrative (Details) (USD $) | 0 Months Ended | 3 Months Ended | ||
Dec. 10, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equity incentive compensation plans maintained by the company | 3 | |||
Unvested restricted stock units | 522,179 | |||
Share-based compensation, included in discontinued operations | $800,000 | $300,000 | ||
Employee stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options, average minimum vesting period (in years) | 4 years | |||
Stock options, average maximum vesting period (in years) | 5 years | |||
Stock options, contractual life (in years) | 10 years | |||
Unrecognized compensation expense | 200,000 | |||
Unrecognized compensation expense, period for recognition | 2 years 6 months | |||
Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Remaining unamortized stock-based compensation expense | 1,100,000 | |||
Remaining unamortized stock-based compensation expense, period for recognition (in years) | 1 year 0 months 0 days | |||
Unvested restricted stock units | 522,179 | 966,579 | ||
Outstanding non-vested RSUs aggregate intrinsic value | 2,800,000 | |||
Outstanding non-vested RSUs weighted average remaining contractual term (in years) | 0 years 6 months | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, aggregate intrinsic value, vested | 2,100,000 | 700,000 | ||
Share-based compensation arrangement, by share-based payment award, options, vested and expected to vest, exercisable, number | 500,000 | |||
Share based compensation arrangement, by share based payment award, equity instruments other than options, expected to vest, intrinsic value | 2,600,000 | |||
Share based compensation arrangement, by share based payment award, equity investments other than options, expected to vest, weighted average contractual term (in years) | 0 years 6 months | |||
Weighted average grant date fair value, shares granted (USD per share) | $4.95 | |||
Vested (in shares) | -300,000 | -406,450 | ||
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Stock Purchase Plan (ESPP), biannual plan duration | 6 months | |||
Employee Stock Purchase Plan (ESPP), employee purchase price percentage | 85.00% | |||
Employee Stock Purchase Plan (ESPP), annual employee contribution limit percentage | 10.00% | |||
Accelerated compensation cost | $25,000 |
Equity_Schedule_of_Stock_Optio
Equity (Schedule of Stock Options Activity) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Number of Shares | ||
Outstanding, beginning of period (in shares) | 1,431,190 | |
Granted (in shares) | 3,200 | |
Exercised (in shares) | -75,014 | |
Forfeited (in shares) | -1,650 | |
Expired (in shares) | -21,489 | |
Outstanding, end of period (in shares) | 1,336,237 | |
Exercisable as of December 31, 2014 (in shares) | 1,312,833 | |
Weighted Average Exercise Price | ||
Outstanding, beginning of period (in dollars per share) | $19.06 | |
Granted (in dollars per share) | $5.15 | |
Exercised (in dollars per share) | $4.61 | |
Forfeited (in dollars per share) | $5.63 | |
Expired (in dollars per share) | $23.61 | |
Outstanding, end of period (in dollars per share) | $19.78 | |
Exercisable as of December 31, 2014 | $20.04 | |
Weighted Average Remaining Contractual Life (in years): | ||
Outstanding as of December 31, 2014 | 2 years 9 months | |
Exercisable as of December 31, 2014 | 2 years 8 months 9 days | |
Vested and expected to vest as of December 31, 2014 | ||
Number of stock options | 1,333,059 | |
Weighted average exercise price | $19.82 | |
Weighted average remaining contractual term | 2 years 8 months 27 days | |
Aggregate Intrinsic Value (in thousands) (USD per share) | ||
Exercised (USD per share) | $49 | $1 |
Outstanding as of December 31, 2014 | 263 | |
Exercisable as of December 31, 2014 | 251 | |
Vested and expected to vest as of December 31, 2014 | $261 |
Equity_Schedule_of_Valuation_A
Equity (Schedule of Valuation Assumptions) (Details) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Black-Scholes weighted average assumptions: | ||
Expected dividend rate | 0.00% | 0.00% |
Expected stock price volatility rate | 82.50% | 95.70% |
Risk-free interest rate | 1.90% | 1.70% |
Expected term (in years) | 6 years | 6 years |
Weighted average grant date fair value per share of stock option granted (in dollars per share) | $3.63 | $3.92 |
Equity_Schedule_of_Restricted_
Equity (Schedule of Restricted Stock Activity) (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
Dec. 10, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Shares | |||
Non-vested as of December 31, 2014 (in shares) | 522,179 | ||
Restricted Stock Units | |||
Number of Shares | |||
Non-vested as of September 30, 2014 (in shares) | 966,579 | ||
Granted (in shares) | 0 | ||
Vested (in shares) | -300,000 | -406,450 | |
Forfeited (in shares) | -37,950 | ||
Non-vested as of December 31, 2014 (in shares) | 522,179 | ||
Weighted Average Grant Date Fair Value | |||
Non-vested as of September 30, 2014 (in dollars per share) | $4.71 | ||
Granted (in dollars per share) | $4.95 | ||
Vested (in dollars per share) | $4.58 | ||
Forfeited (in dollars per share) | $4.86 | ||
Non-vested as of December 31, 2014 (in dollars per share) | $4.80 |
Equity_Schedule_of_Stockbased_
Equity (Schedule of Stock-based Compensation Expense - by Award Type) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $1,774 | $819 |
Employee stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 177 | 49 |
Restricted stock awards and units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 1,259 | 494 |
Employee stock purchase plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 50 | 88 |
401(k) match in common stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 80 | 78 |
Outside director fees in common stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $208 | $110 |
Equity_Schedule_of_Stockbased_1
Equity (Schedule of Stock-based Compensation Expense - by Expense Category) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $1,774 | $819 |
Cost of revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 104 | 109 |
Selling, general, and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 1,565 | 553 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $105 | $157 |
Equity_Schedule_of_Earnings_pe
Equity (Schedule of Earnings per Share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Numerator | ||
Loss from continuing operations | ($3,130) | ($3,823) |
Income from discontinued operations | 59,258 | 1,769 |
Net income (loss) | 56,128 | -2,054 |
Undistributed earnings allocated to common shareholders for basic net income (loss) per share | 56,128 | -2,054 |
Undistributed earnings allocated to common shareholders for diluted net income (loss) per share | $56,128 | ($2,054) |
Denominator: | ||
Denominator for basic net income (loss) per share - weighted average shares outstanding | 31,217 | 29,938 |
Dilutive options outstanding, unvested stock units and ESPP | 0 | 0 |
Denominator for diluted net income (loss) per share - adjusted weighted average shares outstanding | 31,217 | 29,938 |
Net income (loss) per basic and diluted shares: | ||
Net income (loss) per basic and diluted shares, continuing operations (USD per share) | ($0.10) | ($0.13) |
Net income (loss) per basic and diluted shares, discontinued operations (USD per share) | $1.90 | $0.06 |
Net income (loss) per basic share and diluted share (USD per share) | $1.80 | ($0.07) |
Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation | 2,649 | 3,049 |
Average market price of common stock (in dollars per share) | $5.29 | $5.04 |
Equity_Schedule_of_Common_Stoc
Equity (Schedule of Common Stock Reserved for Future Issuances) (Details) | Dec. 31, 2014 | Sep. 30, 2014 |
Equity [Abstract] | ||
Exercise of outstanding stock options | 1,336,237 | 1,431,190 |
Unvested restricted stock units | 522,179 | |
Purchases under the employee stock purchase plan | 1,092,983 | |
Issuance of stock-based awards under the Equity Plans | 1,145,183 | |
Exercise of outstanding warrants | 400,001 | 400,001 |
Purchases under the officer and director share purchase plan | 88,741 | |
Total reserved | 4,585,324 |
Geographical_Information_Narra
Geographical Information Narrative (Details) (USD $) | 3 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 10, 2014 | Oct. 22, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Percentage of long-lived assets located in the United States | 28.00% | 47.00% | |||
Revision in estimated cash flows | ($2,879,000) | ||||
Asset retirement obligation, revision in estimated cash flows | 845,000 | 0 | |||
Leasehold Improvements | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Decrease in property, plant, and equipment | -2,100,000 | ||||
Customer Concentration Risk | Sales Revenue, Segment | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Revenue by customer, percentage | 50.00% | 44.00% | |||
Photovoltaics Business | Photovoltaics | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Asset purchase agreement, selling price | 150,000,000 | ||||
Digital Products Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Asset purchase agreement, selling price | $17,500,000 |
Geographical_Information_Sched
Geographical Information (Schedule of Revenue by Geographic Region) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ||
Revenue | $18,416 | $14,663 |
United States | ||
Segment Reporting Information [Line Items] | ||
Revenue | 13,350 | 10,444 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,697 | 2,168 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,077 | 1,664 |
Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | $292 | $387 |
Geographical_Information_Sched1
Geographical Information (Schedule of Long-lived Assets) (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $8,304 | $10,528 |
United States | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 2,302 | 4,997 |
International | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $6,002 | $5,531 |