Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2016 | May. 02, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | EMCORE CORPORATION | |
Entity Central Index Key | 808,326 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 26,102,399 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||||
Revenue | $ 21,532 | $ 19,057 | $ 44,022 | $ 37,473 |
Cost of revenue | 14,510 | 12,678 | 29,599 | 25,915 |
Gross profit | 7,022 | 6,379 | 14,423 | 11,558 |
Operating expense (income): | ||||
Selling, general, and administrative | 4,825 | 5,954 | 9,646 | 14,581 |
Research and development | 2,564 | 2,022 | 5,124 | 4,196 |
Gain from change in estimate on ARO obligation | 0 | 0 | 0 | (845) |
Loss on sale of assets | 0 | 0 | 0 | 228 |
Total operating expense | 7,389 | 7,976 | 14,770 | 18,160 |
Operating loss | (367) | (1,597) | (347) | (6,602) |
Other income (expense): | ||||
Interest income, net | 25 | 165 | 8 | 35 |
Foreign exchange gain (loss) | 25 | (6) | (110) | 51 |
Change in fair value of financial instruments | 0 | 86 | 0 | 122 |
Total other income (expense) | 50 | 245 | (102) | 208 |
Loss from continuing operations before income tax (expense) benefit | (317) | (1,352) | (449) | (6,394) |
Income tax benefit | 155 | 396 | 153 | 2,308 |
Loss from continuing operations | (162) | (956) | (296) | (4,086) |
Income from discontinued operations, net of tax | 4,144 | 4,008 | 5,265 | 63,266 |
Net income | 3,982 | 3,052 | 4,969 | 59,180 |
Foreign exchange translation adjustment | 43 | (8) | (45) | (719) |
Comprehensive income | $ 4,025 | $ 3,044 | $ 4,924 | $ 58,461 |
Per share data: | ||||
Net (loss) per basic and diluted share, continuing operations, (in usd per share) | $ (0.01) | $ (0.03) | $ (0.01) | $ (0.13) |
Net income per basic and diluted share, discontinued operations (in usd per share) | 0.16 | 0.13 | 0.20 | 2 |
Net income per basic and diluted share (in usd per share) | $ 0.15 | $ 0.10 | $ 0.19 | $ 1.87 |
Weighted-average number of basic and diluted shares outstanding (in shares) | 25,942 | 32,077 | 25,818 | 31,640 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Sep. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 110,031 | $ 111,885 |
Restricted cash | 529 | 375 |
Accounts receivable, net of allowance of $103 and $462, respectively | 19,326 | 17,319 |
Inventory | 16,792 | 17,130 |
Prepaid expenses and other current assets | 4,362 | 4,976 |
Total current assets | 151,040 | 151,685 |
Property, plant, and equipment, net | 10,228 | 8,925 |
Other non-current assets, net of allowance of $0 and $3,561, respectively | 298 | 297 |
Total assets | 161,566 | 160,907 |
Current liabilities: | ||
Accounts payable | 8,150 | 7,189 |
Deferred gain associated with sale of assets | 0 | 3,400 |
Accrued expenses and other current liabilities | 9,859 | 13,102 |
Total current liabilities | 18,009 | 23,691 |
Asset retirement obligations | 1,540 | 1,774 |
Total liabilities | $ 19,549 | $ 25,465 |
Commitments and contingencies (Note 11) | ||
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; 33,012 shares issued and 26,102 shares outstanding as of March 31, 2016; 32,586 shares issued and 25,676 shares outstanding as of September 30, 2015 | 763,654 | 762,003 |
Treasury stock at cost; 6,910 shares at March 31, 2016 and September 30, 2015 | (47,721) | (47,721) |
Accumulated other comprehensive income | 802 | 847 |
Accumulated deficit | (574,718) | (579,687) |
Total shareholders’ equity | 142,017 | 135,442 |
Total liabilities and shareholders’ equity | $ 161,566 | $ 160,907 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Sep. 30, 2015 |
Accounts receivable: | ||
Allowance for doubtful accounts | $ 103 | $ 462 |
Other non-current assets: | ||
Allowance for non-current assets | $ 0 | $ 3,561 |
Shareholders’ equity: | ||
Preferred stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
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) | 33,012,000 | 32,586,000 |
Common stock, shares outstanding (in shares) | 26,102,000 | 25,676,000 |
Treasury stock, shares held (in shares) | 6,910,000 | 6,910,000 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 4,969 | $ 59,180 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation, amortization and accretion expense | 1,081 | 1,803 |
Stock-based compensation expense | 920 | 3,760 |
Deferred income taxes | 0 | 24,080 |
Provision adjustments related to doubtful accounts | 4 | 463 |
Provision adjustments related to product warranty | 234 | 515 |
Change in fair value of financial instruments | 0 | (122) |
Gain from change in estimate on ARO obligation | 0 | (845) |
Reclassification of foreign currency translation adjustment | 0 | (744) |
Recognition of previously deferred gain on sale of assets from discontinued operations | (3,804) | 0 |
Gain on reduction of product warranty of discontinued operations | (423) | 0 |
Gain on settlement of solar power assets and obligations | (689) | 0 |
Gain on settlement of Newark lease | (310) | 0 |
Net loss on disposal of equipment | 0 | 237 |
Settlement of customer related warranty claim | 0 | (280) |
Total non-cash adjustments | (2,987) | (60,149) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,017) | 3,859 |
Inventory | 228 | (1,541) |
Other assets | 1,323 | (913) |
Accounts payable | 1,172 | (3,151) |
Accrued expenses and other current liabilities | (2,412) | (3,012) |
Total change in operating assets and liabilities | (1,706) | (4,758) |
Net cash provided by (used in) operating activities | 276 | (5,727) |
Cash flows from investing activities: | ||
Purchase of equipment | (2,685) | (1,150) |
(Increase) decrease in restricted cash | (155) | 1,314 |
Proceeds from disposal of property, plant and equipment | 0 | 50 |
Net cash (used in) provided by investing activities | (2,840) | 151,714 |
Cash flows from financing activities: | ||
Payments on credit facilities | 0 | (26,518) |
Proceeds from stock plans | 597 | 834 |
Net cash provided by (used in) financing activities | 597 | (25,684) |
Effect of exchange rate changes on foreign currency | 113 | (25) |
Net (decrease) increase in cash and cash equivalents | (1,854) | 120,278 |
Cash and cash equivalents at beginning of period | 111,885 | 20,687 |
Cash and cash equivalents at end of period | 110,031 | 140,965 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid during the period for interest | 44 | 139 |
Cash paid during the period for income taxes | 108 | 25 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Sale of Digital Products assets to NeoPhotonics for note receivable | 0 | 15,482 |
Changes in accounts payable related to purchases of equipment | (191) | 0 |
Issuance of common stock to Board of Directors | 263 | 301 |
Photovoltaics Business [Member] | ||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Gain on sale of business | 0 | (87,022) |
Cash flows from investing activities: | ||
Proceeds from sale of business | 0 | 150,000 |
Digital Products Business [Member] | ||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Gain on sale of business | 0 | (1,994) |
Cash flows from investing activities: | ||
Proceeds from sale of business | $ 0 | $ 1,500 |
Description of Business
Description of Business | 6 Months Ended |
Mar. 31, 2016 | |
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”), established in 1984 as a New Jersey corporation, designs and manufactures Indium Phosphide (InP) optical chips, components, subsystems and systems for the broadband and specialty fiber optics market. EMCORE is a provider of optical components, as well as complete end-to-end solutions for high-speed communications network infrastructures enabling systems and service providers to meet growing demand for bandwidth and connectivity. EMCORE's advance optical technologies are designed for Cable Television (CATV), Fiber-To-The-Premises (FTTP) networks, telecommunications and data centers, satellite communications, aerospace and defense, wireless networks, and broadcast and professional audio/video systems. With its InP semiconductor wafer fabrication facility, EMCORE has fully vertically-integrated manufacturing capability and also provides contract design, foundry and component packaging services. We currently have one reporting segment: Fiber Optics. Until the first quarter of fiscal year 2015, we operated as two segments: Fiber Optics and Photovoltaics. 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 and complete satellite solar panels. In addition, EMCORE sold certain assets, and transferred certain liabilities, of the Company's telecommunications business, including the ITLA, micro-ITLA, T-TOSA and T-XFP product lines within the Company’s telecommunications business in January 2015. 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, the repurchase of shares of our outstanding common stock or payment of dividends to our shareholders, and we may engage financial and other advisors to assist in these efforts. Accordingly, the Strategy and Alternatives Committee of the Board of Directors 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. Sale of Photovoltaics and Digital Products Businesses 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 SolAero acquired substantially all of the assets, and assumed substantially all of the liabilities, primarily related to or used in connection with the Company's photovoltaics business, including EMCORE's subsidiaries EMCORE Solar Power, Inc. and EMCORE IRB Company, LLC (collectively, the "Photovoltaics Business" and, the sale of the Photovoltaics Business, the "Photovoltaics Asset Sale") for $150.0 million in cash, prior to a $0.1 million working capital adjustment pursuant to the Photovoltaics Agreement finalized and paid by EMCORE during the fiscal year ended September 30, 2015 . 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 sold certain assets, and transferred certain liabilities, of the Company's telecommunications business (the "Digital Products Business") 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 for $1.5 million in cash and an adjusted Promissory Note balance of $15.5 million . On April 17, 2015 , NeoPhotonics paid in full the outstanding balance of the Promissory Note of $15.5 million , plus accrued interest of $0.2 million . No Photovoltaics Business or Digital Products Business assets or liabilities that were sold remain on the condensed consolidated balance sheet as of March 31, 2016 . The financial results of the Photovoltaics Business and the Digital Products Business are presented as "discontinued operations" on the condensed consolidated statements of operations and comprehensive income for the three and six months ended March 31, 2016 and 2015 . See Note 3 - Discontinued Operations for additional information. The notes to our condensed consolidated financial statements relate to our continuing operations only, unless otherwise indicated. 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, 2015 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, 2015 . 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. Liquidity and Capital Resources Historically, we have consumed cash from operations and in most periods, we have incurred operating losses from continuing operations. We have managed our liquidity position through the sale of assets, and cost reduction initiatives, as well as, from time to time, borrowings from our credit facility and capital markets transactions. On June 15, 2015 , we completed the modified "Dutch auction" tender offer (the "Tender Offer") and purchased 6.9 million shares of our common stock at a purchase price of $6.55 per share, for an aggregate cost of $45.0 million excluding fees and expenses. Repurchased common stock was recorded to treasury stock. The Company incurred costs of $0.7 million in connection with the Tender Offer, which were recorded to treasury stock. As of March 31, 2016 , cash and cash equivalents totaled $110.0 million and net working capital totaled approximately $133.0 million . Net working capital, calculated as current assets minus current liabilities, is a financial metric we use which represents available operating liquidity. For the six months ended March 31, 2016 , we earned net income of $5.0 million . With respect to measures related to liquidity: We expect existing cash, cash equivalents, cash flows from operations, and access to capital markets to continue to be sufficient to fund our operating activities and cash commitments for investing and financing activities for at least the next 12 months and thereafter for the foreseeable future. Should we require more capital than what is generated by our operations, for example to fund significant discretionary activities, such as business acquisitions and share repurchases, we could elect to raise capital in the U.S. through debt or equity issuances. These alternatives could result in higher effective tax rates, increased interest expense, or dilution of our earnings. We have borrowed funds in the past and continue to believe we have the ability to do so at reasonable interest rates. • Sale of Photovoltaics Business : On December 10, 2014 , we completed the sale of our Photovoltaics Business for $150.0 million in cash prior to working capital adjustments of $0.1 million . • Sale of Digital Products Business : On January 2, 2015 , we completed the sale of our Digital Products Business for $1.5 million in cash and an adjusted Promissory Note balance of $15.5 million . On April 17, 2015 , NeoPhotonics paid in full the outstanding balance of the Promissory Note of $15.5 million , plus accrued interest of $0.2 million . • Credit Facility : 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, as it has been amended through its seventh amendment on November 10, 2015 , currently provides us with a revolving credit line of up to $15.0 million through November 2018 that can be used for working capital requirements, letters of credit, and other general corporate purposes. 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. See Note 9 - Credit Facilities for additional information. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Mar. 31, 2016 | |
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 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 introduces targeted amendments intended to simplify the accounting for stock compensation. Specifically, the ASU requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The new guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The new standard will be effective for our fiscal year beginning October 1, 2017 and early adoption is permitted. We are currently evaluating the impact of this accounting standard update on our Condensed Consolidated Financial Statements. • In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 introduces a lessee model that requires recognition of assets and liabilities arising from qualified leases on the consolidated balance sheets and consolidated statements of operations and disclosure of qualitative and quantitative information about lease transactions. This guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those years. The new standard will be effective for our fiscal year beginning October 1, 2019 and early adoption is permitted. We are currently evaluating the impact of this accounting standard update on our Condensed Consolidated Financial Statements. • In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. Under this guidance, organizations that present a classified balance sheet are required to classify all deferred taxes as non-current assets or non-current liabilities. The guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The new standard will be effective for our fiscal year beginning October 1, 2018 and early adoption is permitted. We do not expect this accounting standard update to have an impact on our Condensed Consolidated Financial Statements. • In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . This standard requires inventory to be measured at the lower of cost and net realizable value. The guidance clarifies that net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. The new standard will be effective for our fiscal year beginning October 1, 2017 and early adoption is permitted. We are currently evaluating the impact of this accounting standard update on our Condensed Consolidated Financial Statements. • In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers which will supersede most current U.S. GAAP guidance on this topic. I n April 2016, the FASB issued ASU No. 2016-10 , R evenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing to clarify two aspects of the guidance within ASU No. 2014-09 on identifying performance obligations and the licensing implementation guidance. Under the new standards, recognition of revenue occurs when the seller satisfies a performance obligation by transferring to the customer promised goods or services in an amount that reflects the consideration the entity expects to receive for those goods or services. The new standard, as amended in August 2015, will be effective for our fiscal year beginning October 1, 2018 and early adoption is permitted as of October 1, 2017. 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. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Sale of Photovoltaics Business On September 17, 2014 , EMCORE entered into the Photovoltaics Agreement with SolAero pursuant to which the Company agreed to sell the Photovoltaics Business for $150.0 million in cash, prior to a working capital adjustment of $0.1 million . On December 10, 2014 , EMCORE completed the Photovoltaics Asset Sale. 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 was recorded within discontinued operations in the consolidated statements of operations and comprehensive income. On December 22, 2015 , we settled all of the outstanding rights and obligations of a solar power venture in Spain, including outstanding non-current receivables, for a payment of $0.7 million . The outstanding non-current receivables had a net book value of $0 at the time of settlement as they were fully allowed for previously. The resulting gain was recorded in the discontinued operations of the Photovoltaics Business for the three months and six months ended March 31, 2016. No assets and liabilities of the Photovoltaics Business that were sold remain on the condensed consolidated balance sheet as of March 31, 2016 and September 30, 2015 . The financial results of the Photovoltaics Business are reported as discontinued operations for the three and six months ended March 31, 2016 and 2015 , respectively. The following table presents the statements of operations for the discontinued operations of the Photovoltaics Business: For the three months ended March 31, For the six months ended March 31, (in thousands) 2016 2015 2016 2015 Revenue $ — $ — $ — $ 12,614 Cost of revenue — — — 8,245 Gross profit — — — 4,369 Operating (income) expense (34 ) (272 ) (821 ) 2,431 Other income — — — 779 Gain on sale of discontinued operations — — — 87,022 Income from discontinued operations before income tax 34 272 821 89,739 Income tax (expense) benefit (19 ) 277 (28 ) (29,926 ) Income from discontinued operations, net of tax $ 15 $ 549 $ 793 $ 59,813 Included in discontinued operations during the three and six months ended March 31, 2016 were $9,200 and $0.1 million , respectively, of New Mexico incentive tax credits received. The credits received resulted in cash refunds. There were no incentive tax credits received during the three and six months ended March 31, 2015 . Sale of Digital Products Business On October 22, 2014 , EMCORE entered into an Asset Purchase Agreement with NeoPhotonics, pursuant to which the Company sold certain assets, and transferred certain liabilities, of the Company's telecommunications business 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 for $1.5 million in cash and an adjusted Promissory Note balance of $15.5 million . On April 17, 2015 , NeoPhotonics paid in full the outstanding balance of the Promissory Note of $15.5 million , plus accrued interest of $0.2 million . During the three months ended March 31, 2015 , we recognized a gain of $2.0 million on the sale of the Digital Products Business which was recorded within discontinued operations in the condensed consolidated statements of operations and comprehensive income. In December 2015 , we entered into an agreement to terminate our lease and related obligations associated with a facility in Newark, California we abandoned effective February 2016 following the sale of the Digital Products Business for a payment of $0.2 million . As a result of this agreement, we recorded a gain of $0.3 million on the lease termination in the discontinued operations of the Digital Products Business during the three and six months ended March 31, 2016. Also see Note 8 - Accrued Expenses and Other Current Liabilities . Included in cost of revenue for the three and six months ended March 31, 2016 is $0.4 million due to a reduction in expected product warranty liabilities from a settlement agreement associated with the Digital Products Business. During the three and six months ended March 31, 2016 , we recognized the deferred gain of $3.4 million and reversal of other liabilities of $0.4 million , that had been recorded as of September 30, 2015 , resulting in a credit of $3.8 million to deferred gain on sale of assets within discontinued operations of the Digital Products Business as the result of the favorable ruling from the SEI arbitration. Also see Note 11 - Commitments and Contingencies . No assets or liabilities from the Digital Products Business remain on the condensed consolidated balance sheet as of March 31, 2016 and September 30, 2015 . The financial results of the Digital Products Business are reported as discontinued operations for the three and six months ended March 31, 2016 and 2015 . The following table presents the statements of operations for the discontinued operations of the Digital Products Business: For the three months ended March 31, For the six months ended March 31, (in thousands) 2016 2015 2016 2015 Revenue $ — $ 40 $ — $ 11,855 Cost of revenue (445 ) (1 ) (494 ) 9,111 Gross profit 445 41 494 2,744 Operating (income) expense (32 ) 446 (330 ) 3,158 Recognition of previously deferred gain on sale of assets 3,804 — 3,804 — Gain on sale of discontinued operations — 1,994 — 1,994 Income from discontinued operations before income tax 4,281 1,589 4,628 1,580 Income tax (expense) benefit (152 ) 1,870 (156 ) 1,873 Income from discontinued operations $ 4,129 $ 3,459 $ 4,472 $ 3,453 |
Fair Value Accounting
Fair Value Accounting | 6 Months Ended |
Mar. 31, 2016 | |
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. • Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly, through market corroboration, for substantially the full term of the financial instrument. • Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets or liabilities at fair value. Classification of an asset or liability within this hierarchy is determined based on the lowest level input that is significant to the fair value measurement. 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 consists primarily of bank deposits or, 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. The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and other current liabilities approximate fair value because of the short maturity of these instruments. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The components of accounts receivable consisted of the following: As of As of (in thousands) March 31, September 30, 2015 Accounts receivable, gross $ 19,429 $ 17,781 Allowance for doubtful accounts (103 ) (462 ) Accounts receivable, net $ 19,326 $ 17,319 The allowance for doubtful accounts is based on the age of receivables and a specific identification of receivables considered at risk of collection. |
Inventory
Inventory | 6 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The components of inventory consisted of the following: As of As of (in thousands) March 31, September 30, 2015 Raw materials $ 11,026 $ 9,261 Work in-process 3,099 3,207 Finished goods 2,667 4,662 Inventory $ 16,792 $ 17,130 |
Property, Plant, and Equipment,
Property, Plant, and Equipment, net | 6 Months Ended |
Mar. 31, 2016 | |
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) March 31, September 30, 2015 Equipment $ 25,969 $ 24,913 Furniture and fixtures 1,109 1,109 Computer hardware and software 2,369 2,177 Leasehold improvements 1,520 1,480 Construction in progress 1,867 875 Property, plant, and equipment, gross 32,834 30,554 Accumulated depreciation (22,606 ) (21,629 ) Property, plant, and equipment, net $ 10,228 $ 8,925 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Mar. 31, 2016 | |
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) March 31, September 30, 2015 Compensation $ 2,753 $ 3,036 Warranty 1,102 1,664 Termination fee 2,775 2,775 Professional fees 643 1,147 Customer deposits 26 133 Deferred revenue 22 65 Self insurance 277 606 Income and other taxes 974 1,038 Severance and restructuring accruals 611 1,448 Other 676 1,190 Accrued expenses and other current liabilities $ 9,859 $ 13,102 Self-insurance : Prior to December 31, 2015, the Company provided health benefits to its employees under a self-insured (stop-loss) plan whereby the Company was responsible for substantially all amounts incurred by the provider related to the benefits provided to members of the plan. Effective January 1, 2016, the Company provides health benefits to its employees through a premium policy based plan and is only responsible for the premium payments for each employee insured under the plan. The balance as of March 31, 2016 relates to the amounts the Company is liable for prior to discontinuing the self-insurance plan. Income and other taxes : For the three months ended March 31, 2016 , the Company recorded income tax benefit from continuing operations of approximately $0.2 million , and $0.2 million of income tax expense within income from discontinued operations. For the six months ended March 31, 2016 , the Company recorded income tax benefit from continuing operations of approximately $0.2 million , and $0.2 million of income tax expense within income from discontinued operations. Also see Note 10 - Income and other Taxes . Severance and restructuring accruals : In the fourth quarter of fiscal year 2014, the Company’s former CEO announced his resignation which became effective in the second quarter of fiscal year 2015. The Company entered into a separation agreement with the individual that provided for among other things, the continuation of his base salary for up to 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 were not contingent upon any future service by the individual. The Company recorded a charge of approximately $0.8 million in the fiscal year ended September 30, 2014 related to this separation agreement. In the first quarter of fiscal year 2015, the Company’s former Chief Administrative Officer and General Counsel and Secretary announced their resignations which became effective in the first quarter and second quarter of fiscal year 2015, respectively. The Company entered into separation agreements with each individual that provided for among other things, the continuation of their base salary (74 weeks for the Chief Administrative Officer and 68 weeks for the General Counsel and Secretary), 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 their outstanding non-vested equity awards. These payments were not contingent upon any future service by either individual. The Company recorded charges of approximately $1.1 million in the six months ended March 31, 2015 related to these separation agreements. In connection with the abandonment of our Newark, California facility following the closing of the sale of the Digital Products Business, we accrued for the remaining lease costs through the lease termination of May 2016 . In December 2015 , we entered into an agreement to terminate this lease and related obligations, including asset retirement obligations ("ARO"), as of February 2016 for a payment of $0.2 million . As a result of the agreement, we recorded a gain of $0.3 million on the lease termination. The resulting gain has been recorded in the discontinued operations of the Digital Products Business for the six months ended March 31, 2016. Also see Note 3 - Discontinued Operations . Our severance and restructuring-related accruals specifically relate to the separation agreements discussed above and non-cancelable obligations associated with an abandoned leased facility. Expense related to severance and restructuring accruals is included in selling, general, and administrative expense on our statement of operations and comprehensive income. The following table summarizes the changes in the severance and restructuring-related accrual accounts: (in thousands) Severance-related accruals Restructuring- related accruals Total Balance as of September 30, 2015 $ 1,110 $ 338 $ 1,448 Expense - charged to accrual — — — Payments and accrual adjustments (506 ) (331 ) (837 ) Balance as of March 31, 2016 $ 604 $ 7 $ 611 Warranty: We generally provide product and other warranties on our components, power systems, and fiber optic products. 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 March 31, For the six months ended March 31, (in thousands) 2016 2015 2016 2015 Balance at beginning of period $ 1,564 $ 2,435 $ 1,664 $ 2,816 Provision for product warranty - expense 88 113 234 515 Adjustments and utilization of warranty accrual (550 ) (624 ) (796 ) (1,407 ) Balance at end of period $ 1,102 $ 1,924 $ 1,102 $ 1,924 Current portion $ 1,102 $ 1,723 $ 1,102 $ 1,723 Non-current portion — 201 — 201 Product warranty liability at end of period $ 1,102 $ 1,924 $ 1,102 $ 1,924 As of March 31, 2015 , the non-current portion of product warranty accruals included Terrestrial Solar Power Generation warranty liabilities retained by EMCORE as part of the Photovoltaics Asset Sale, which were settled during the fiscal year ended September 30, 2015 . See Note 3 - Discontinued Operations for additional information. |
Credit Facilities
Credit Facilities | 6 Months Ended |
Mar. 31, 2016 | |
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 November 10, 2015 , we entered into a Seventh Amendment of the credit facility, which extended the maturity date of the facility to November 2018 and adjusted the interest rate to LIBOR plus 2.5% . The credit facility currently provides us with a revolving credit line of up to $15.0 million that can be used for working capital requirements, letters of credit, and other general corporate purposes. As of March 31, 2016 , there were no amounts outstanding under this credit facility and the Company was in compliance with all financial covenants. Also, as of March 31, 2016 , the credit facility had approximately $0.7 million reserved for two stand-by letters of credit and $5.9 million available for borrowing. As of May 5, 2016 , there was no outstanding balance under this credit facility. |
Income and other Taxes
Income and other Taxes | 6 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income and other Taxes | Income and other Taxes For the three months ended March 31, 2016 , the Company recorded income tax benefit from continuing operations of approximately $0.2 million , and $0.2 million of income tax expense within income from discontinued operations. For the six months ended March 31, 2016 , the Company recorded income tax benefit from continuing operations of approximately $0.2 million , and $0.2 million of income tax expense within income from discontinued operations. Income tax expense is comprised of estimated alternative minimum tax allocated between continuing operations and discontinued operations as prescribed by ASC 740. For the three months ended March 31, 2015 , the Company recorded $0.4 million of income tax benefit from continuing operations losses and $2.1 million of income tax benefit within income from discontinued operations. For the six months ended March 31, 2015 , the Company recorded $2.3 million of income tax benefit from continuing operations losses and $28.1 million of income tax expense within income from discontinued operations. The income tax expense within discontinued operations included 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. For the three months ended March 31, 2016 and 2015 , the effective tax rate on continuing operations was 48.9% and 29.3% , respectively. The higher tax rate for the three months ended March 31, 2016 was primarily due to permanent differences, state tax benefits and foreign rate differentials. For the six months ended March 31, 2016 and 2015 , the effective tax rate on continuing operations was 34.1% and 36.1% respectively. The lower tax rate for the six months ended March 31, 2016 was primarily due to permanent differences, state tax benefits and foreign tax rate differentials. 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. We have not provided for U.S. federal and state income taxes on non-U.S. subsidiaries' undistributed earnings as of March 31, 2016 because we plan to indefinitely reinvest the unremitted earnings of our non-U.S. subsidiaries. All deferred tax assets have a full valuation allowance at March 31, 2016 and the Company expects all remaining deferred tax assets to have a full valuation allowance at September 30, 2016 . However, on a quarterly basis, the Company will evaluate the positive and negative evidence to assess whether the more likely than not criteria, mandated by ASC 740, has been satisfied in determining whether there will be further adjustments to the valuation allowance. During the three and six months ended March 31, 2016 and 2015 , there were no material increases or decreases in unrecognized tax benefits. As of March 31, 2016 and September 30, 2015 , we had approximately $0.4 million and $0.3 million , respectively, of interest and penalties accrued as tax liabilities on our balance sheet. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2016 | |
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 $0.3 million and $0.3 million for the three months ended March 31, 2016 and 2015 , respectively and approximately $0.6 million and $0.7 million for the six months ended March 31, 2016 and 2015 , 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 ARO's 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 ARO's in the period incurred in long-term liabilities. The fair value of the ARO is also capitalized as property, plant and equipment. In future periods, the ARO 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 ARO changes, an adjustment will be recorded to both the ARO 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 ARO's. The fair value of our ARO 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 4.20% . There were no ARO's settled during the three and six months ended March 31, 2015 . See discussion below regarding ARO settlements during the first quarter of fiscal 2016. Accretion expense of $15,000 and $52,000 was recorded during the three months ended March 31, 2016 and 2015 , respectively. Accretion expense of $30,000 and $67,000 was recorded during the six months ended March 31, 2016 and 2015 , respectively. EMCORE leases a major facility in Alhambra, California covering six buildings where manufacturing, research and development, and general and administrative work is performed . Several leases related to these facilities expired in 2011, and 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 and clarified the obligations and restoration work necessary to restore the buildings back to the requirements in the lease. The Company’s ARO consists of legal requirements to return the existing leased facilities to their 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. 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 ARO's. The analysis required estimating the probability 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 ARO liability. This change in the estimated cash flows resulted in a reduction in the ARO liability by $ 2.9 million with an offsetting reduction to property, plant, and equipment, net of $2.1 million , and a gain from change in estimate of ARO liability 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 ARO's were established. The amount of the remaining reduction to the ARO's was recorded as a reduction to operating expenses. During the three months ended December 31, 2015, the Company entered into an agreement to terminate the lease and related obligations, including ARO, in Newark, California for a one-time settlement payment of $0.2 million . As a result of this agreement and payment, the Company reduced its ARO's associated with the Newark facility by $0.3 million . The following table summarizes ARO activity: Asset Retirement Obligations March 31, (in thousands) 2016 Balance at September 30, 2015 $ 1,774 Accretion expense 30 Payments and revision in estimated cash flows (264 ) Balance at March 31, 2016 $ 1,540 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 March 31, 2016 , 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. Under the terms of the Master Purchase Agreement, we 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 a result of these contingencies. On September 23, 2014 , SEI filed for arbitration against EMCORE, as required under the Master Purchase Agreement between the parties. SEI was seeking $47.5 million from EMCORE, relating to numerous claims. On April 12, 2016 , the International Court of Arbitration tribunal rejected SEI's claims. The panel ruled that EMCORE owes SEI none of the amounts SEI sought in the arbitration and that the Company is entitled to collect the $1.9 million held in escrow. The Company is also entitled to recover $2.6 million in fees and costs from SEI. During the three and six months ended March 31, 2016 , we recognized a gain associated with the release of the $3.4 million and reversal of other liabilities of $0.4 million , resulting in a credit of $3.8 million to recognition of previously deferred gain on sale of assets within discontinued operations of the Digital Products Business. The $2.6 million recovery of fees and costs incurred by EMCORE will be recorded when received from SEI, and the $1.9 million held in escrow will be reclassified to cash once the funds are released to EMCORE. Also see Note 3 - Discontinued Operations . 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) Mirasol Class Action On December 15, 2015, Plaintiff Christina Mirasol (“Mirasol”), on her own behalf and on behalf of a putative class of similarly situated individuals composed of current and former non-exempt employees of the Company working in California since December 15, 2011, filed a complaint against the Company in the Superior Court of California, Los Angeles County. The complaint alleges seven causes of action related to: (1) failure to pay overtime; (2) failure to provide meal periods; (3) failure to pay minimum wages; (4) failure to timely pay wages upon termination; (5) failure to provide compliant wage statements; and (6) unfair competition under the California Business and Professions Code § 17200 et seq. The claims are premised primarily on the allegation that Mirasol and the putative class members were not provided with their legally required meal periods. Mirasol seeks recovery on her own behalf and on behalf of the putative class in an unspecified amount for compensatory and liquidated damages as well as for declaratory relief, injunctive relief, statutory penalties, pre-judgment interest, costs and attorneys’ fees. In March 2016, the Company offered current employees the opportunity to receive a one-time cash payment in exchange for a release of all potential claims related to the Mirasol lawsuit. The Company estimates that its potential future liability related to all potential putative class members may range from $0.1 million to $4.3 million , including penalties and fines associated with the claims at March 31, 2016 . Based on the preliminary responses received, the Company has accrued $0.1 million at March 31, 2016 , which represents the best estimate within the range. This amount has been recorded within Operating Expense for the three and six months ended March 31, 2016 . |
Equity
Equity | 6 Months Ended |
Mar. 31, 2016 | |
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, • the 2010 Equity Incentive Plan, and • the 2012 Equity Incentive Plan. We issue new shares of common stock to satisfy awards issued under our Equity Plans. The Board of Directors (the “Board”) of the Company previously approved, subject to stockholder approval, amendments to the 2012 Plan that would, among other changes, (1) increase the limit on the aggregate number of shares of common stock that may be delivered pursuant to awards granted under the 2012 Plan by 500,000 shares to a new aggregate share limit of 2,500,000 shares; (2) make shares exchanged or withheld by the Company to satisfy any purchase price and tax withholding obligations related to options or “full value awards” (such as restricted stock or stock unit awards), and the total number of shares subject to stock appreciation rights (whether or not issued) count against the 2012 Plan’s share limit and no longer available for new grants under the 2012 Plan; (3) implement a maximum grant date fair value limit for awards granted to non-employee directors under the 2012 Plan during any one calendar year of $250,000 (or $350,000 in the case of awards to a non-employee director serving as Chairman of the Board or Lead Independent Director at the time of grant, or to a newly elected or appointed non-employee director during the first calendar year of service), (4) expressly allow the administrator to permit or require participants to defer awards granted under the 2012 Plan, (5) extend the term of the 2012 Plan until March 11, 2026 ; and (6) extend the performance-based award feature of the 2012 Plan through the first annual meeting of stockholders that occurs in 2021 . The Company’s stockholders approved the amendments to the 2012 Plan on March 11, 2016 . As a result of the approval of the amendments to the 2012 Plan by the Company's stockholders, no more shares may be granted under the 2007 Directors' Stock Award Plan. 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 six months ended March 31, 2016 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (*) (in thousands) Outstanding as of September 30, 2015 696,459 $22.47 Granted 16,700 $6.37 Exercised (37,413 ) $4.98 $ 80 Forfeited (5,700 ) $6.35 Expired (52,099 ) $31.22 Outstanding as of March 31, 2016 617,947 $22.51 2.76 $ 97 Exercisable as of March 31, 2016 567,172 $23.97 2.18 $ 97 Vested and expected to vest as of March 31, 2016 607,534 $22.79 2.65 $ 97 (*) 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 six months ended March 31, 2015, the intrinsic value of options exercised was $95,000 . As of March 31, 2016 , 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 4.0 years. On December 10, 2014 , in connection with the sale of the Photovoltaics Business, which constituted a change in control, the terms of approximately 56,000 stock options for approximately 80 employees were modified to include accelerated vesting effective as of that date. The total incremental benefit resulting from the modifications was approximately $0.2 million and is included in the Company's income from discontinued operations, net of tax, for the six months ended March 31, 2015. 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 March 31, For the six months ended March 31, 2016 2015 2016 2015 Black-Scholes weighted average assumptions: Expected dividend rate — % — % — % — % Expected stock price volatility rate 61.0 % 72.7 % 61.3 % 76.0 % Risk-free interest rate 1.5 % 1.7 % 1.6 % 1.8 % Expected term (in years) 6.0 6.0 6.0 6.0 Weighted average grant date fair value per share of stock options granted: $2.97 $ 3.51 $ 3.64 $ 3.55 Restricted Stock Restricted stock units (RSUs) granted to employees under the 2010 Plan and 2012 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 six months ended March 31, 2016 : Restricted Stock Activity Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Non-vested as of September 30, 2015 570,231 $5.26 Granted 280,650 $5.22 Vested (251,970 ) $5.14 Forfeited (7,916 ) $5.15 Non-vested as of March 31, 2016 590,995 $5.30 As of March 31, 2016 , there was approximately $2.6 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 2.2 years. The 0.6 million outstanding non-vested RSUs have an aggregate intrinsic value of approximately $3.0 million and a weighted average remaining contractual term of 1.5 years. For the six months ended March 31, 2016 and 2015 , the intrinsic value of RSUs vested was approximately $1.4 million and $4.4 million , respectively. Of the 0.6 million outstanding non-vested RSUs at March 31, 2016 , approximately 0.5 million are expected to vest and have an aggregate intrinsic value of approximately $2.7 million and a weighted average remaining contractual term of 1.5 years. On December 10, 2014 , in connection with the sale of the Photovoltaics Business, which constituted a change in control, the terms of approximately 147,000 RSUs for approximately 80 employees were modified to include accelerated vesting effective as of that date. The total incremental expense resulting from the modifications was approximately $49,000 and is included in the Company's income from discontinued operations, net of tax, for the six months ended March 31, 2015. In total, approximately 0.3 million RSU's vested due to change in control provisions. 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 March 31, For the six months ended March 31, (in thousands) 2016 2015 2016 2015 Employee stock options $ 10 $ 7 $ 16 $ 184 Restricted stock awards and units 453 797 719 2,056 Employee stock purchase plan 56 14 111 64 401(k) match in common stock — 144 — 224 Outside director fees in common stock 94 72 130 280 Total stock-based compensation expense $ 613 $ 1,034 $ 976 $ 2,808 Stock-based Compensation Expense - by expense type For the three months ended March 31, For the six months ended March 31, (in thousands) 2016 2015 2016 2015 Cost of revenue $ 113 $ 81 $ 182 $ 185 Selling, general, and administrative 420 849 608 2,414 Research and development 80 104 186 209 Total stock-based compensation expense $ 613 $ 1,034 $ 976 $ 2,808 The stock based compensation expense above relates to continuing operations. Stock based-compensation within selling, general and administrative expense was higher for three and six months ended March 31, 2015 due to stock-based compensation expense associated with the sale of the Photovoltaics and Digital Products Businesses. Included within discontinued operations is $0.9 million of stock based compensation expense for the six months ended March 31, 2015 . 401(k) Plan We have a savings plan that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under this savings plan, participating employees may defer a portion of their pretax earnings, up to the Internal Revenue Service annual contribution limit. All employer contributions were made in common stock through June 30, 2015 and since then have been made in cash. Our matching contribution in cash for the three and six months ended March 31, 2016 was approximately $0.1 million and $0.2 million , respectively. For the three and six months ended March 31, 2015 , we contributed approximately $0.1 million and $0.2 million , respectively, in common stock to the savings plan. All participant accounts had their holdings in company stock liquidated as of December 3, 2015 . Income (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share: Basic and Diluted Net Income (loss) Per Share For the three months ended March 31, For the six months ended March 31, (in thousands, except per share) 2016 2015 2016 2015 Numerator: Loss from continuing operations $ (162 ) $ (956 ) $ (296 ) $ (4,086 ) Income from discontinued operations 4,144 4,008 5,265 63,266 Undistributed earnings allocated to common shareholders for basic and diluted net (loss) income per share 3,982 3,052 4,969 59,180 Denominator: Denominator for basic and diluted net income (loss) per share - weighted average shares outstanding 25,942 32,077 25,818 31,640 Net income (loss) per basic and diluted share: Continuing operations $ (0.01 ) $ (0.03 ) $ (0.01 ) $ (0.13 ) Discontinued operations 0.16 0.13 0.20 2.00 Net income per basic and diluted share $ 0.15 $ 0.10 $ 0.19 $ 1.87 Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation 721 2,214 794 2,434 Average market price of common stock $ 5.44 $ 5.34 $ 6.19 $ 5.32 The antidilutive stock options, unvested stock and warrants were excluded from the computation of diluted net income (loss) per share 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 annual contributions are limited to the lower of 10% of an employee's compensation or $25,000 . Future Issuances As of March 31, 2016 , 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 617,947 Unvested restricted stock units 590,995 Purchases under the employee stock purchase plan 881,706 Issuance of stock-based awards under the Equity Plans 837,887 Purchases under the officer and director share purchase plan 88,741 Issuance of deferred stock-based awards under the Directors' Stock Award Plan, as amended 22,163 Total reserved 3,039,439 |
Geographical Information
Geographical Information | 6 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Geographical Information | Geographical Information Following the sale of the Photovoltaics Business on December 10, 2014 , the Company has one remaining reportable segment: Fiber Optics. See also Note 3 - Discontinued Operations for additional disclosures. We evaluate our reportable segment 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 segment and allocates resources to the segment based on its 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. Revenue by Geographic Region For the three months ended March 31, For the six months ended March 31, (in thousands) 2016 2015 2016 2015 United States $ 15,369 $ 13,063 $ 29,182 $ 26,413 Asia 4,638 3,901 10,977 6,598 Europe 1,371 1,950 3,534 4,027 Other 154 143 329 435 Total revenue $ 21,532 $ 19,057 $ 44,022 $ 37,473 Significant Customers : Significant customers are defined as customers representing greater than 10% of our consolidated revenue. Revenue from two of our significant customers represented 51% of our consolidated revenue for the three months and six months ended March 31, 2016 . Revenue from three of our significant customers represented 54% of our consolidated revenue for the three months ended March 31, 2015 and revenue from four of our significant customers represented 62% of our consolidated revenue for the six months ended March 31, 2015 . Long-lived Assets : Long-lived assets consist of property, plant, and equipment. As of March 31, 2016 and September 30, 2015 , approximately 50% and 38% , respectively, of our long-lived assets were located in the United States. The remaining long-lived assets are primarily located in China. |
Recent Accounting Pronounceme19
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Mar. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Cash and Cash Equivalents | Cash consists primarily of bank deposits or, 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. |
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. • Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly, through market corroboration, for substantially the full term of the financial instrument. • Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets or liabilities at fair value. Classification of an asset or liability within this hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. |
Accounts Receivable | 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 and restructuring accruals is included in selling, general, and administrative expense on our statement of operations and comprehensive income. |
Asset Retirement Obligations | 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 ARO's 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 ARO's in the period incurred in long-term liabilities. The fair value of the ARO is also capitalized as property, plant and equipment. In future periods, the ARO 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 ARO changes, an adjustment will be recorded to both the ARO 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 ARO's. |
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 segment 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 segment and allocates resources to the segment based on its 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. |
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 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 introduces targeted amendments intended to simplify the accounting for stock compensation. Specifically, the ASU requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The new guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The new standard will be effective for our fiscal year beginning October 1, 2017 and early adoption is permitted. We are currently evaluating the impact of this accounting standard update on our Condensed Consolidated Financial Statements. • In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 introduces a lessee model that requires recognition of assets and liabilities arising from qualified leases on the consolidated balance sheets and consolidated statements of operations and disclosure of qualitative and quantitative information about lease transactions. This guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those years. The new standard will be effective for our fiscal year beginning October 1, 2019 and early adoption is permitted. We are currently evaluating the impact of this accounting standard update on our Condensed Consolidated Financial Statements. • In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. Under this guidance, organizations that present a classified balance sheet are required to classify all deferred taxes as non-current assets or non-current liabilities. The guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The new standard will be effective for our fiscal year beginning October 1, 2018 and early adoption is permitted. We do not expect this accounting standard update to have an impact on our Condensed Consolidated Financial Statements. • In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . This standard requires inventory to be measured at the lower of cost and net realizable value. The guidance clarifies that net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. The new standard will be effective for our fiscal year beginning October 1, 2017 and early adoption is permitted. We are currently evaluating the impact of this accounting standard update on our Condensed Consolidated Financial Statements. • In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers which will supersede most current U.S. GAAP guidance on this topic. I n April 2016, the FASB issued ASU No. 2016-10 , R evenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing to clarify two aspects of the guidance within ASU No. 2014-09 on identifying performance obligations and the licensing implementation guidance. Under the new standards, recognition of revenue occurs when the seller satisfies a performance obligation by transferring to the customer promised goods or services in an amount that reflects the consideration the entity expects to receive for those goods or services. The new standard, as amended in August 2015, will be effective for our fiscal year beginning October 1, 2018 and early adoption is permitted as of October 1, 2017. 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. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Photovoltaics Business [Member] | |
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: For the three months ended March 31, For the six months ended March 31, (in thousands) 2016 2015 2016 2015 Revenue $ — $ — $ — $ 12,614 Cost of revenue — — — 8,245 Gross profit — — — 4,369 Operating (income) expense (34 ) (272 ) (821 ) 2,431 Other income — — — 779 Gain on sale of discontinued operations — — — 87,022 Income from discontinued operations before income tax 34 272 821 89,739 Income tax (expense) benefit (19 ) 277 (28 ) (29,926 ) Income from discontinued operations, net of tax $ 15 $ 549 $ 793 $ 59,813 |
Digital Products Business [Member] | |
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: For the three months ended March 31, For the six months ended March 31, (in thousands) 2016 2015 2016 2015 Revenue $ — $ 40 $ — $ 11,855 Cost of revenue (445 ) (1 ) (494 ) 9,111 Gross profit 445 41 494 2,744 Operating (income) expense (32 ) 446 (330 ) 3,158 Recognition of previously deferred gain on sale of assets 3,804 — 3,804 — Gain on sale of discontinued operations — 1,994 — 1,994 Income from discontinued operations before income tax 4,281 1,589 4,628 1,580 Income tax (expense) benefit (152 ) 1,870 (156 ) 1,873 Income from discontinued operations $ 4,129 $ 3,459 $ 4,472 $ 3,453 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
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) March 31, September 30, 2015 Accounts receivable, gross $ 19,429 $ 17,781 Allowance for doubtful accounts (103 ) (462 ) Accounts receivable, net $ 19,326 $ 17,319 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventory consisted of the following: As of As of (in thousands) March 31, September 30, 2015 Raw materials $ 11,026 $ 9,261 Work in-process 3,099 3,207 Finished goods 2,667 4,662 Inventory $ 16,792 $ 17,130 |
Property, Plant, and Equipmen23
Property, Plant, and Equipment, net (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
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) March 31, September 30, 2015 Equipment $ 25,969 $ 24,913 Furniture and fixtures 1,109 1,109 Computer hardware and software 2,369 2,177 Leasehold improvements 1,520 1,480 Construction in progress 1,867 875 Property, plant, and equipment, gross 32,834 30,554 Accumulated depreciation (22,606 ) (21,629 ) Property, plant, and equipment, net $ 10,228 $ 8,925 |
Accrued Expenses and Other Cu24
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
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) March 31, September 30, 2015 Compensation $ 2,753 $ 3,036 Warranty 1,102 1,664 Termination fee 2,775 2,775 Professional fees 643 1,147 Customer deposits 26 133 Deferred revenue 22 65 Self insurance 277 606 Income and other taxes 974 1,038 Severance and restructuring accruals 611 1,448 Other 676 1,190 Accrued expenses and other current liabilities $ 9,859 $ 13,102 |
Schedule of Restructuring and Related Costs | The following table summarizes the changes in the severance and restructuring-related accrual accounts: (in thousands) Severance-related accruals Restructuring- related accruals Total Balance as of September 30, 2015 $ 1,110 $ 338 $ 1,448 Expense - charged to accrual — — — Payments and accrual adjustments (506 ) (331 ) (837 ) Balance as of March 31, 2016 $ 604 $ 7 $ 611 |
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 March 31, For the six months ended March 31, (in thousands) 2016 2015 2016 2015 Balance at beginning of period $ 1,564 $ 2,435 $ 1,664 $ 2,816 Provision for product warranty - expense 88 113 234 515 Adjustments and utilization of warranty accrual (550 ) (624 ) (796 ) (1,407 ) Balance at end of period $ 1,102 $ 1,924 $ 1,102 $ 1,924 Current portion $ 1,102 $ 1,723 $ 1,102 $ 1,723 Non-current portion — 201 — 201 Product warranty liability at end of period $ 1,102 $ 1,924 $ 1,102 $ 1,924 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Asset Retirement Obligations Activity | The following table summarizes ARO activity: Asset Retirement Obligations March 31, (in thousands) 2016 Balance at September 30, 2015 $ 1,774 Accretion expense 30 Payments and revision in estimated cash flows (264 ) Balance at March 31, 2016 $ 1,540 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Stock Options Activity | The following table summarizes stock option activity under the Equity Plans for the six months ended March 31, 2016 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (*) (in thousands) Outstanding as of September 30, 2015 696,459 $22.47 Granted 16,700 $6.37 Exercised (37,413 ) $4.98 $ 80 Forfeited (5,700 ) $6.35 Expired (52,099 ) $31.22 Outstanding as of March 31, 2016 617,947 $22.51 2.76 $ 97 Exercisable as of March 31, 2016 567,172 $23.97 2.18 $ 97 Vested and expected to vest as of March 31, 2016 607,534 $22.79 2.65 $ 97 (*) 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 six months ended March 31, 2015, the intrinsic value of options exercised was $95,000 . |
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 March 31, For the six months ended March 31, 2016 2015 2016 2015 Black-Scholes weighted average assumptions: Expected dividend rate — % — % — % — % Expected stock price volatility rate 61.0 % 72.7 % 61.3 % 76.0 % Risk-free interest rate 1.5 % 1.7 % 1.6 % 1.8 % Expected term (in years) 6.0 6.0 6.0 6.0 Weighted average grant date fair value per share of stock options granted: $2.97 $ 3.51 $ 3.64 $ 3.55 |
Schedule of Restricted Stock Activity | The following table summarizes the activity related to RSUs for the six months ended March 31, 2016 : Restricted Stock Activity Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Non-vested as of September 30, 2015 570,231 $5.26 Granted 280,650 $5.22 Vested (251,970 ) $5.14 Forfeited (7,916 ) $5.15 Non-vested as of March 31, 2016 590,995 $5.30 |
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 March 31, For the six months ended March 31, (in thousands) 2016 2015 2016 2015 Employee stock options $ 10 $ 7 $ 16 $ 184 Restricted stock awards and units 453 797 719 2,056 Employee stock purchase plan 56 14 111 64 401(k) match in common stock — 144 — 224 Outside director fees in common stock 94 72 130 280 Total stock-based compensation expense $ 613 $ 1,034 $ 976 $ 2,808 |
Schedule Stock-based Compensation Expense - By Expense Type | Stock-based Compensation Expense - by expense type For the three months ended March 31, For the six months ended March 31, (in thousands) 2016 2015 2016 2015 Cost of revenue $ 113 $ 81 $ 182 $ 185 Selling, general, and administrative 420 849 608 2,414 Research and development 80 104 186 209 Total stock-based compensation expense $ 613 $ 1,034 $ 976 $ 2,808 |
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 Income (loss) Per Share For the three months ended March 31, For the six months ended March 31, (in thousands, except per share) 2016 2015 2016 2015 Numerator: Loss from continuing operations $ (162 ) $ (956 ) $ (296 ) $ (4,086 ) Income from discontinued operations 4,144 4,008 5,265 63,266 Undistributed earnings allocated to common shareholders for basic and diluted net (loss) income per share 3,982 3,052 4,969 59,180 Denominator: Denominator for basic and diluted net income (loss) per share - weighted average shares outstanding 25,942 32,077 25,818 31,640 Net income (loss) per basic and diluted share: Continuing operations $ (0.01 ) $ (0.03 ) $ (0.01 ) $ (0.13 ) Discontinued operations 0.16 0.13 0.20 2.00 Net income per basic and diluted share $ 0.15 $ 0.10 $ 0.19 $ 1.87 Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation 721 2,214 794 2,434 Average market price of common stock $ 5.44 $ 5.34 $ 6.19 $ 5.32 |
Schedule of Common Stock Reserved for Future Issuances | As of March 31, 2016 , 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 617,947 Unvested restricted stock units 590,995 Purchases under the employee stock purchase plan 881,706 Issuance of stock-based awards under the Equity Plans 837,887 Purchases under the officer and director share purchase plan 88,741 Issuance of deferred stock-based awards under the Directors' Stock Award Plan, as amended 22,163 Total reserved 3,039,439 |
Geographical Information (Table
Geographical Information (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
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. Revenue by Geographic Region For the three months ended March 31, For the six months ended March 31, (in thousands) 2016 2015 2016 2015 United States $ 15,369 $ 13,063 $ 29,182 $ 26,413 Asia 4,638 3,901 10,977 6,598 Europe 1,371 1,950 3,534 4,027 Other 154 143 329 435 Total revenue $ 21,532 $ 19,057 $ 44,022 $ 37,473 |
Description of Business (Busine
Description of Business (Business Overview) (Details) - segment | Dec. 10, 2014 | Mar. 31, 2016 | Sep. 30, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of reporting segments | 1 | 1 | 2 |
Description of Business (Sale o
Description of Business (Sale of Photovoltaics and Digital Products Business) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Sep. 30, 2015 | Apr. 17, 2015 | Apr. 16, 2015 | Jan. 02, 2015 | Dec. 10, 2014 | Oct. 22, 2014 | Sep. 17, 2014 | |
Photovoltaics Business [Member] | Photovoltaics [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Asset purchase agreement, selling price | $ 150 | $ 150 | |||||
Working capital adjustment | $ 0.1 | ||||||
Digital Products Business [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Asset purchase agreement, selling price | $ 17.5 | ||||||
Asset sale, promissory note, principal amount | $ 15.5 | $ 1.5 | |||||
Accrued interest on note receivable | $ 0.2 |
Description of Business (Liquid
Description of Business (Liquidity and Capital Resources) (Details) - USD ($) $ / shares in Units, shares in Millions | Jun. 15, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Sep. 30, 2015 | Apr. 17, 2015 | Apr. 16, 2015 | Jan. 02, 2015 | Dec. 10, 2014 | Oct. 22, 2014 | Sep. 30, 2014 | Sep. 17, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Shares acquired (in shares) | 6.9 | ||||||||||||
Average cost per share (in usd per share) | $ 6.55 | ||||||||||||
Repurchases of common stock | $ 45,000,000 | ||||||||||||
Repurchase costs | $ 700,000 | ||||||||||||
Cash and cash equivalents | $ 110,031,000 | $ 140,965,000 | $ 110,031,000 | $ 140,965,000 | $ 111,885,000 | $ 20,687,000 | |||||||
Working capital | 133,000,000 | 133,000,000 | |||||||||||
Net income | $ 3,982,000 | $ 3,052,000 | $ 4,969,000 | $ 59,180,000 | |||||||||
Photovoltaics Business [Member] | Photovoltaics [Member] | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Asset purchase agreement, selling price | $ 150,000,000 | $ 150,000,000 | |||||||||||
Working capital adjustment | $ 100,000 | ||||||||||||
Digital Products Business [Member] | |||||||||||||
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, promissory note, principal amount | $ 15,500,000 | $ 1,500,000 | |||||||||||
Accrued interest on note receivable | $ 200,000 | ||||||||||||
Sixth Amendment [Member] | Revolving Credit Facility [Member] | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) | Dec. 22, 2015 | Dec. 10, 2014 | Dec. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Sep. 30, 2015 | Apr. 17, 2015 | Apr. 16, 2015 | Jan. 02, 2015 | Oct. 22, 2014 | Sep. 17, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Proceeds from sale of venture | $ 700,000 | |||||||||||||
Book value of outstanding receivables | $ 0 | |||||||||||||
Incentive tax credits | $ 9,200 | $ 0 | $ 100,000 | $ 0 | ||||||||||
Payments to terminate lease agreement | $ 200,000 | 200,000 | ||||||||||||
Gain on lease termination | $ 300,000 | 310,000 | 0 | |||||||||||
Gain on settlement | 0 | $ 280,000 | ||||||||||||
Digital Products Business [Member] | ||||||||||||||
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, promissory note, principal amount | $ 15,500,000 | $ 1,500,000 | ||||||||||||
Accrued interest on note receivable | $ 200,000 | |||||||||||||
Photovoltaics [Member] | Photovoltaics Business [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Asset purchase agreement, selling price | $ 150,000,000 | $ 150,000,000 | ||||||||||||
Working capital adjustment | $ 100,000 | |||||||||||||
Net assets sold | 60,300,000 | |||||||||||||
Transaction costs incurred in sale of business | $ 2,700,000 | |||||||||||||
Discontinued Operations [Member] | Digital Products Business [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Gain on sale of business | $ 2,000,000 | |||||||||||||
Discontinued Operations [Member] | Photovoltaics [Member] | Photovoltaics Business [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Gain on sale of business | $ 56,800,000 | |||||||||||||
Sumitomo Electric Industries, LTD [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Write off of loss accrual | 400,000 | 400,000 | ||||||||||||
Gain on settlement | 3,400,000 | 3,400,000 | ||||||||||||
Discontinued Operations [Member] | Sumitomo Electric Industries, LTD [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Gain on settlement | $ 3,800,000 | $ 3,800,000 |
Discontinued Operations (Income
Discontinued Operations (Income Statements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Photovoltaics Business [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 12,614 |
Cost of revenue | 0 | 0 | 0 | 8,245 |
Gross profit | 0 | 0 | 0 | 4,369 |
Operating (income) expense | (34) | (272) | (821) | 2,431 |
Other income | 0 | 0 | 0 | 779 |
Gain on sale of discontinued operations | 0 | 0 | 0 | 87,022 |
Income from discontinued operations before income tax | 34 | 272 | 821 | 89,739 |
Income tax (expense) benefit | (19) | 277 | (28) | (29,926) |
Income from discontinued operations, net of tax | 15 | 549 | 793 | 59,813 |
Digital Products Business [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 0 | 40 | 0 | 11,855 |
Cost of revenue | (445) | (1) | (494) | 9,111 |
Gross profit | 445 | 41 | 494 | 2,744 |
Operating (income) expense | (32) | 446 | (330) | 3,158 |
Other income | 3,804 | 0 | 3,804 | 0 |
Gain on sale of discontinued operations | 0 | 1,994 | 0 | 1,994 |
Income from discontinued operations before income tax | 4,281 | 1,589 | 4,628 | 1,580 |
Income tax (expense) benefit | (152) | 1,870 | (156) | 1,873 |
Income from discontinued operations, net of tax | $ 4,129 | $ 3,459 | $ 4,472 | $ 3,453 |
Accounts Receivable (Schedule o
Accounts Receivable (Schedule of Components of Accounts Receivable) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Sep. 30, 2015 |
Receivables [Abstract] | ||
Accounts receivable, gross | $ 19,429 | $ 17,781 |
Allowance for doubtful accounts | (103) | (462) |
Accounts receivable, net | $ 19,326 | $ 17,319 |
Inventory (Schedule of Componen
Inventory (Schedule of Components of Inventory) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Sep. 30, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 11,026 | $ 9,261 |
Work in-process | 3,099 | 3,207 |
Finished goods | 2,667 | 4,662 |
Inventory | $ 16,792 | $ 17,130 |
Property, Plant, and Equipmen35
Property, Plant, and Equipment, net (Schedule of Property, Plant, and Equipment) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Sep. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 32,834 | $ 30,554 |
Accumulated depreciation | (22,606) | (21,629) |
Property, plant, and equipment, net | 10,228 | 8,925 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 25,969 | 24,913 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 1,109 | 1,109 |
Computer hardware and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 2,369 | 2,177 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 1,520 | 1,480 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 1,867 | $ 875 |
Accrued Expenses and Other Cu36
Accrued Expenses and Other Current Liabilities (Schedule of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Sep. 30, 2015 | Mar. 31, 2015 |
Payables and Accruals [Abstract] | |||
Compensation | $ 2,753 | $ 3,036 | |
Warranty | 1,102 | 1,664 | $ 1,723 |
Termination fee | 2,775 | 2,775 | |
Professional fees | 643 | 1,147 | |
Customer deposits | 26 | 133 | |
Deferred revenue | 22 | 65 | |
Self insurance | 277 | 606 | |
Income and other taxes | 974 | 1,038 | |
Severance and restructuring accruals | 611 | 1,448 | |
Other | 676 | 1,190 | |
Accrued expenses and other current liabilities | $ 9,859 | $ 13,102 |
Accrued Expenses and Other Cu37
Accrued Expenses and Other Current Liabilities (Income and Other Taxes) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | |
Payables and Accruals [Abstract] | |||||
Income tax expense | $ 155 | $ 396 | $ 153 | $ 2,308 | |
Income tax expense, discontinued operations | $ (200) | $ 2,100 | $ (200) | $ 28,100 |
Accrued Expenses and Other Cu38
Accrued Expenses and Other Current Liabilities (Severance and Restructuring Accruals) (Narrative) (Details) - USD ($) | Dec. 10, 2014 | Sep. 17, 2014 | Dec. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Sep. 30, 2014 |
Severance and restructuring accruals: | ||||||
Payments to terminate lease agreement | $ 200,000 | $ 200,000 | ||||
Gain on lease termination | $ 300,000 | $ 310,000 | $ 0 | |||
Chief Executive Officer | ||||||
Severance and restructuring accruals: | ||||||
Continuation of base salary period | 602 days | |||||
Outplacement services, period | 1 year | |||||
Outplacement services, value | $ 15,000 | |||||
Estimated charge related to separation agreement | $ 800,000 | |||||
Chief Administrative Officer and Chief Counsel and Secretary | ||||||
Severance and restructuring accruals: | ||||||
Outplacement services, period | 1 year | |||||
Outplacement services, value | $ 15,000 | |||||
Estimated charge related to separation agreement | $ 1,100,000 | |||||
Chief Administrative Officer | ||||||
Severance and restructuring accruals: | ||||||
Continuation of base salary period | 518 days | |||||
Chief Counsel and Secretary | ||||||
Severance and restructuring accruals: | ||||||
Continuation of base salary period | 476 days |
Accrued Expenses and Other Cu39
Accrued Expenses and Other Current Liabilities (Schedule of Restructuring and Related Costs) (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2016USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | $ 1,448 |
Expense - charged to accrual | 0 |
Payments and accrual adjustments | (837) |
Ending Balance | 611 |
Severance-related accruals [Member] | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 1,110 |
Expense - charged to accrual | 0 |
Payments and accrual adjustments | (506) |
Ending Balance | 604 |
Restructuring-related accruals [Member] | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 338 |
Expense - charged to accrual | 0 |
Payments and accrual adjustments | (331) |
Ending Balance | $ 7 |
Accrued Expenses and Other Cu40
Accrued Expenses and Other Current Liabilities (Schedule of Product Warranty Accruals) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Sep. 30, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||||
Balance at beginning of period | $ 1,564 | $ 2,435 | $ 1,664 | $ 2,816 | |
Provision for product warranty - expense | 88 | 113 | 234 | 515 | |
Adjustments and utilization of warranty accrual | (550) | (624) | (796) | (1,407) | |
Balance at end of period | 1,102 | 1,924 | 1,102 | 1,924 | |
Current portion | 1,102 | 1,723 | 1,102 | 1,723 | $ 1,664 |
Non-current portion | $ 0 | $ 201 | $ 0 | $ 201 |
Credit Facilities (Narrative) (
Credit Facilities (Narrative) (Details) | Nov. 10, 2015 | May. 05, 2016USD ($) | Mar. 31, 2016USD ($)letter_of_credit | Dec. 10, 2014USD ($) |
London Interbank Offered Rate (LIBOR) [Member] | Seventh Amendment [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.50% | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Long-term line of credit | $ 0 | |||
Revolving Credit Facility [Member] | LIBOR Rate Loan [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Standby letters of credit, total amount outstanding | $ 700,000 | |||
Number of standby letters of credit outstanding | letter_of_credit | 2 | |||
Remaining borrowing capacity | $ 5,900,000 | |||
Revolving Credit Facility [Member] | Sixth Amendment [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | |||
Subsequent Event [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Long-term line of credit | $ 0 |
Income and other Taxes (Narrati
Income and other Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||||||
Income tax expense | $ 155 | $ 396 | $ 153 | $ 2,308 | |||
Income tax expense, discontinued operations | $ (200) | $ 2,100 | $ (200) | $ 28,100 | |||
Effective tax rate | (48.90%) | (29.30%) | (34.10%) | (36.10%) | |||
Income tax penalties and interest accrued | $ 400 | $ 400 | $ 300 |
Commitments and Contingencies43
Commitments and Contingencies (Narrative) (Details) | Oct. 01, 2014 | Sep. 23, 2014USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2012USD ($) | Mar. 31, 2016USD ($)building | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Mar. 31, 2016USD ($)building | Mar. 31, 2015USD ($) | Nov. 30, 2014building |
Loss Contingencies [Line Items] | ||||||||||
Operating leases, rent expense | $ 300,000 | $ 300,000 | $ 600,000 | $ 700,000 | ||||||
Fair value assumptions, credit adjusted risk-free rate, range minimal amount | 3.25% | 3.25% | ||||||||
Fair value assumptions, credit adjusted risk-free rate, range maximum amount | 4.20% | 4.20% | ||||||||
Accretion expense | $ 15,000 | 52,000 | $ 30,000 | 67,000 | ||||||
Gain from change in estimate on ARO obligation | $ 2,900,000 | |||||||||
Decrease in property, plant, and equipment | 2,100,000 | |||||||||
Asset retirement obligation, revision in estimated cash flows | 0 | $ 0 | $ 800,000 | 0 | 845,000 | |||||
Payments to terminate lease agreement | $ 200,000 | 200,000 | ||||||||
Reduction in ARO | 300,000 | |||||||||
Business combination, indemnification assets, range of outcomes, value | $ 3,400,000 | |||||||||
Business combination, indemnification duration, period taken into account for | 2 years | |||||||||
Gain on settlement | 0 | $ 280,000 | ||||||||
Sumitomo Electric Industries, LTD [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, damages sought | $ 47,500,000 | |||||||||
Receivable in escrow | 1,900,000 | 1,900,000 | ||||||||
Recovery of fees and costs from SEI | 2,600,000 | |||||||||
Gain on settlement | 3,400,000 | 3,400,000 | ||||||||
Write off of loss accrual | $ 400,000 | 400,000 | ||||||||
Mirasol Class Action [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Accrual for contingency | $ 100,000 | |||||||||
Buildings [Member] | Property Subject to Operating Lease [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of leased buildings | building | 6 | 6 | ||||||||
Leases retroactively effective | building | 4 | |||||||||
Lease term | 3 years | |||||||||
Operating lease, term extension, option to extend | 3 years | |||||||||
Discontinued Operations [Member] | Sumitomo Electric Industries, LTD [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Gain on settlement | $ 3,800,000 | $ 3,800,000 | ||||||||
Minimum [Member] | Mirasol Class Action [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Estimate of loss | 100,000 | 100,000 | ||||||||
Maximum [Member] | Mirasol Class Action [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Estimate of loss | $ 4,300,000 | $ 4,300,000 |
Commitments and Contingencies44
Commitments and Contingencies (Asset Retirement Obligation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Asset Retirement Obligations | ||||
Asset retirement obligation, beginning balance | $ 1,774 | |||
Accretion expense | $ 15 | $ 52 | 30 | $ 67 |
Revision in estimated cash flows | (264) | |||
Asset retirement obligation, ending balance | $ 1,540 | $ 1,540 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) | Dec. 10, 2014USD ($)employeeshares | Mar. 31, 2016USD ($)planshares | Mar. 31, 2015USD ($) | Mar. 31, 2016USD ($)planshares | Mar. 31, 2015USD ($) | Sep. 30, 2015shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of equity incentive compensation plans maintained by the company | plan | 3 | 3 | ||||
Intrinsic value of shares exercised | $ 80,000 | $ 95,000 | ||||
Unvested restricted stock units (in shares) | shares | 590,995 | 590,995 | ||||
Stock-based compensation expense | $ 613,000 | $ 1,034,000 | $ 976,000 | 2,808,000 | ||
Cash matching contribution | 100,000 | $ 200,000 | ||||
Discontinued Operations [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | 900,000 | |||||
Employee stock options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options, average minimum vesting period | 4 years | |||||
Stock options, average maximum vesting period | 5 years | |||||
Stock options, contractual life | 10 years | |||||
Unrecognized compensation expense | 200,000 | $ 200,000 | ||||
Unrecognized compensation expense, period for recognition | 3 years 11 months 27 days | |||||
Number of shares affected (in shares) | shares | 56,000 | |||||
Incremental expense (benefit) with modification | $ (200,000) | |||||
Stock-based compensation expense | 10,000 | 7,000 | $ 16,000 | 184,000 | ||
Restricted Stock Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Restricted Stock Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares affected (in shares) | shares | 147,000 | |||||
Number of employees affected | employee | 80 | |||||
Incremental expense (benefit) with modification | $ 49,000 | |||||
Remaining unamortized stock-based compensation expense | $ 2,600,000 | $ 2,600,000 | ||||
Remaining unamortized stock-based compensation expense, period for recognition | 2 years 2 months 12 days | |||||
Unvested restricted stock units (in shares) | shares | 590,995 | 590,995 | 570,231 | |||
Outstanding non-vested RSUs aggregate intrinsic value | $ 3,000,000 | $ 3,000,000 | ||||
Outstanding non-vested RSUs weighted average remaining contractual term | 1 year 6 months | |||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, aggregate intrinsic value, vested | $ 1,400,000 | 4,400,000 | ||||
Share-based compensation arrangement, by share-based payment award, options, vested and expected to vest, exercisable, number | shares | 500,000 | 500,000 | ||||
Share based compensation arrangement, by share based payment award, equity instruments other than options, expected to vest, intrinsic value | $ 2,700,000 | $ 2,700,000 | ||||
Share based compensation arrangement, by share based payment award, equity investments other than options, expected to vest, weighted average contractual term | 1 year 6 months | |||||
Vested (in shares) | shares | 300,000 | 251,970 | ||||
Employee stock purchase plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | 56,000 | 14,000 | $ 111,000 | 64,000 | ||
401(k) match in common stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 0 | $ 144,000 | $ 0 | $ 224,000 | ||
2012 Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Incremental shares authorized (in shares) | shares | 500,000 | |||||
Shares authorized (in shares) | shares | 2,500,000 | 2,500,000 | ||||
Employee stock purchase plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee stock purchase plan (ESPP), employee purchase price percentage | 85.00% | |||||
Employee stock purchase plan (ESPP), annual employee contribution limit percentage | 10.00% | |||||
Share-based compensation arrangement by share-based payment award accelerated compensation cost | $ 25,000 | |||||
Non-employee Directors [Member] | 2012 Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum grant date fair value limit | 250,000 | |||||
Non-employee Directors serving as Chairman or Lead Independent Director [Member] | 2012 Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum grant date fair value limit | $ 350,000 |
Equity (Schedule of Stock Optio
Equity (Schedule of Stock Options Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Number of Shares | ||
Outstanding, beginning of period (in shares) | 696,459 | |
Granted (in shares) | 16,700 | |
Exercised (in shares) | (37,413) | |
Forfeited (in shares) | (5,700) | |
Expired (in shares) | (52,099) | |
Outstanding, end of period (in shares) | 617,947 | |
Exercisable (in shares) | 567,172 | |
Weighted Average Exercise Price | ||
Outstanding, beginning of period (in usd per share) | $ 22.47 | |
Granted (in usd per share) | 6.37 | |
Exercised (in usd per share) | 4.98 | |
Forfeited (in usd per share) | 6.35 | |
Expired (in usd per share) | 31.22 | |
Outstanding, end of period (in usd per share) | 22.51 | |
Exercisable (in usd per share) | $ 23.97 | |
Weighted Average Remaining Contractual Life (in years): | ||
Outstanding | 2 years 9 months 4 days | |
Exercisable | 2 years 2 months 5 days | |
Vested and expected to vest | ||
Number of stock options (in shares) | 607,534 | |
Weighted average exercise price (in usd per share) | $ 22.79 | |
Weighted average remaining contractual term | 2 years 7 months 24 days | |
Aggregate Intrinsic Value (in thousands) (USD per share) | ||
Intrinsic value of shares exercised | $ 80 | $ 95 |
Outstanding | 97 | |
Exercisable | 97 | |
Vested and expected to vest | $ 97 |
Equity (Schedule of Valuation A
Equity (Schedule of Valuation Assumptions) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Black-Scholes weighted average assumptions: | ||||
Expected dividend rate | 0.00% | 0.00% | 0.00% | 0.00% |
Expected stock price volatility rate | 61.00% | 72.70% | 61.30% | 76.00% |
Risk-free interest rate | 1.50% | 1.70% | 1.60% | 1.80% |
Expected term (in years) | 6 years | 6 years | 6 years | 6 years |
Weighted average grant date fair value per share of stock option granted (in usd per share) | $ 2.97 | $ 3.51 | $ 3.64 | $ 3.55 |
Equity (Schedule of Restricted
Equity (Schedule of Restricted Stock Activity) (Details) - $ / shares | Dec. 10, 2014 | Mar. 31, 2016 |
Number of Shares | ||
Non-vested, ending balance (in shares) | 590,995 | |
Restricted Stock Units [Member] | ||
Number of Shares | ||
Non-vested, beginning balance (in shares) | 570,231 | |
Granted (in shares) | 280,650 | |
Vested (in shares) | (300,000) | (251,970) |
Forfeited (in shares) | (7,916) | |
Non-vested, ending balance (in shares) | 590,995 | |
Weighted Average Grant Date Fair Value | ||
Non-vested, beginning balance (in usd per share) | $ 5.26 | |
Granted (in usd per share) | 5.22 | |
Vested (in usd per share) | 5.14 | |
Forfeited (in usd per share) | 5.15 | |
Non-vested, ending balance (in usd per share) | $ 5.30 |
Equity (Schedule of Stock-based
Equity (Schedule of Stock-based Compensation Expense - by Award Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 613 | $ 1,034 | $ 976 | $ 2,808 |
Employee stock options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 10 | 7 | 16 | 184 |
Restricted stock awards and units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 453 | 797 | 719 | 2,056 |
Employee stock purchase plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 56 | 14 | 111 | 64 |
401(k) match in common stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 0 | 144 | 0 | 224 |
Outside director fees in common stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 94 | $ 72 | $ 130 | $ 280 |
Equity (Schedule of Stock-bas50
Equity (Schedule of Stock-based Compensation Expense - by Expense Category) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 613 | $ 1,034 | $ 976 | $ 2,808 |
Cost of revenue [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 113 | 81 | 182 | 185 |
Selling, general, and administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 420 | 849 | 608 | 2,414 |
Research and development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 80 | $ 104 | $ 186 | $ 209 |
Equity (Schedule of Earnings pe
Equity (Schedule of Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Numerator: | ||||
Loss from continuing operations | $ (162) | $ (956) | $ (296) | $ (4,086) |
Income from discontinued operations | 4,144 | 4,008 | 5,265 | 63,266 |
Net income | $ 3,982 | $ 3,052 | $ 4,969 | $ 59,180 |
Denominator: | ||||
Denominator for basic net (loss) income per share - weighted average shares outstanding (in shares) | 25,942 | 32,077 | 25,818 | 31,640 |
Net (loss) income per basic share: | ||||
Net (loss) income per basic share, continuing operations (in usd per share) | $ (0.01) | $ (0.03) | $ (0.01) | $ (0.13) |
Net (loss) income per basic share, discontinued operations (in usd per share) | 0.16 | 0.13 | 0.20 | 2 |
Net income per basic share (in usd per share) | $ 0.15 | $ 0.10 | $ 0.19 | $ 1.87 |
Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation (in shares) | 721 | 2,214 | 794 | 2,434 |
Average market price of common stock (in dollars per share) | $ 5.44 | $ 5.34 | $ 6.19 | $ 5.32 |
Equity (Schedule of Common Stoc
Equity (Schedule of Common Stock Reserved for Future Issuances) (Details) - shares | Mar. 31, 2016 | Sep. 30, 2015 |
Equity [Abstract] | ||
Exercise of outstanding stock options | 617,947 | 696,459 |
Unvested restricted stock units | 590,995 | |
Purchases under the employee stock purchase plan | 881,706 | |
Issuance of stock-based awards under the Equity Plans | 837,887 | |
Purchases under the officer and director share purchase plan | 88,741 | |
Issuance of deferred stock-based awards under the Directors' Stock Award Plan, as amended | 22,163 | |
Total reserved | 3,039,439 |
Geographical Information (Narra
Geographical Information (Narrative) (Details) | Dec. 10, 2014segment | Mar. 31, 2016customers | Mar. 31, 2015customers | Mar. 31, 2016segmentcustomers | Mar. 31, 2015customers | Sep. 30, 2014segment | Dec. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of reporting segments | segment | 1 | 1 | 2 | ||||
Number of customers | customers | 2,000 | 3 | 2 | 4 | |||
Percentage of long-lived assets located in the United States | 50.00% | 50.00% | 38.00% | ||||
Customer Concentration Risk [Member] | Sales Revenue, Segment [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Concentration risk percentage | 51.00% | 54.00% | 51.00% | 62.00% |
Geographical Information (Sched
Geographical Information (Schedule of Revenue by Geographic Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 21,532 | $ 19,057 | $ 44,022 | $ 37,473 |
United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 15,369 | 13,063 | 29,182 | 26,413 |
Asia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 4,638 | 3,901 | 10,977 | 6,598 |
Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,371 | 1,950 | 3,534 | 4,027 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 154 | $ 143 | $ 329 | $ 435 |