Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Nov. 30, 2016 | Mar. 31, 2016 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | EMCORE CORPORATION | ||
Entity Central Index Key | 808,326 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Period Focus | FY | ||
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 | 26,245,113 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 129.3 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | |||
Revenue | $ 91,998 | $ 81,685 | $ 55,514 |
Cost of revenue | 61,044 | 52,994 | 43,400 |
Gross profit | 30,954 | 28,691 | 12,114 |
Operating expense (income): | |||
Selling, general, and administrative | 20,734 | 24,711 | 23,239 |
Research and development | 9,921 | 9,119 | 9,306 |
Recovery of previously incurred litigation related fees and expenses from arbitration award | (2,599) | 0 | 0 |
Gain from change in estimate on ARO obligation | 0 | (845) | 0 |
(Gain) loss on sale of assets | (41) | 228 | (100) |
Total operating expense | 28,015 | 33,213 | 32,445 |
Operating income (loss) | 2,939 | (4,522) | (20,331) |
Other income (expense): | |||
Interest income (expense), net | 88 | 75 | (522) |
Foreign exchange loss | (394) | (138) | (7) |
Gain on sale of investment | 0 | 0 | 307 |
Change in fair value of financial instruments | 0 | 122 | 34 |
Other income | 0 | 0 | 51 |
Total other (expense) income | (306) | 59 | (137) |
Income (loss) from continuing operations before income tax (expense) benefit | 2,633 | (4,463) | (20,468) |
Income tax (expense) benefit | (14) | 2,191 | 24,550 |
Income (loss) from continuing operations | 2,619 | (2,272) | 4,082 |
Income from discontinued operations, net of tax | 5,647 | 65,372 | 770 |
Net income | 8,266 | 63,100 | 4,852 |
Foreign exchange translation adjustment | (268) | (990) | 214 |
Comprehensive income | $ 7,998 | $ 62,110 | $ 5,066 |
Per share data: | |||
Net income (loss) per basic share, continuing operations, (in usd per share) | $ 0.10 | $ (0.08) | $ 0.13 |
Net income per basic share, discontinued operations (in usd per share) | 0.22 | 2.18 | 0.03 |
Net income per basic share (in usd per share) | 0.32 | 2.10 | 0.16 |
Net income (loss) per diluted share, continuing operations (in usd per share) | 0.10 | (0.08) | 0.13 |
Net income per diluted share, discontinued operations (in usd per share) | 0.21 | 2.18 | 0.03 |
Net income per diluted share (in usd per share) | $ 0.31 | $ 2.10 | $ 0.16 |
Weighted-average number of basic shares outstanding (in shares) | 25,979 | 30,012 | 30,453 |
Weighted-average number of basic shares outstanding (in shares) | 26,518 | 30,012 | 30,777 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 63,905 | $ 111,885 |
Restricted cash | 965 | 375 |
Accounts receivable, net of allowance of $36 and $462, respectively | 18,432 | 17,319 |
Inventory | 24,150 | 17,130 |
Prepaid expenses and other current assets | 3,764 | 4,976 |
Total current assets | 111,216 | 151,685 |
Property, plant, and equipment, net | 12,213 | 8,925 |
Non-current inventory | 3,531 | 0 |
Other non-current assets, net of allowance of $0 and $3,561, respectively | 251 | 297 |
Total assets | 127,211 | 160,907 |
Current liabilities: | ||
Accounts payable | 10,575 | 7,189 |
Deferred gain associated with sale of assets | 0 | 3,400 |
Accrued expenses and other current liabilities | 7,684 | 13,102 |
Total current liabilities | 18,259 | 23,691 |
Asset retirement obligations | 1,573 | 1,774 |
Other long-term liabilities | 62 | 0 |
Total liabilities | 19,894 | 25,465 |
Commitments and contingencies (Note 12) | ||
Shareholders’ equity: | ||
Preferred stock, $0.0001 par value, 5,882 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, no par value, 50,000 shares authorized; 33,154 shares issued and 26,244 shares outstanding as of September 30, 2016; 32,586 shares issued and 25,676 shares outstanding as of September 30, 2015 | 725,880 | 762,003 |
Treasury stock at cost; 6,910 shares at September 30, 2016 and 2015 | (47,721) | (47,721) |
Accumulated other comprehensive income | 579 | 847 |
Accumulated deficit | (571,421) | (579,687) |
Total shareholders’ equity | 107,317 | 135,442 |
Total liabilities and shareholders’ equity | $ 127,211 | $ 160,907 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Accounts receivable: | ||
Allowance for doubtful accounts | $ 36 | $ 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) | 33,154,000 | 32,586,000 |
Common stock, shares outstanding (in shares) | 26,244,000 | 25,676,000 |
Treasury stock, shares held (in shares) | 6,910,000 | 6,910,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] |
Beginning balance (in shares) at Sep. 30, 2013 | 29,982,000 | ||||
Beginning balance at Sep. 30, 2013 | $ 101,179 | $ 749,266 | $ (2,071) | $ 1,623 | $ (647,639) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 4,852 | 4,852 | |||
Translation adjustment | 214 | 214 | |||
Share-based compensation (in shares) | 633,000 | ||||
Stock-based compensation | 4,074 | $ 4,074 | |||
Stock option exercises (in shares) | 120,000 | ||||
Stock option exercises | 573 | $ 573 | |||
Issuance of common stock - ESPP (in shares) | 341,000 | ||||
Issuance of common stock - ESPP | $ 1,182 | $ 1,182 | |||
Issuance of common stock - ODPP (in shares) | 1,600 | 2,000 | |||
Issuance of common stock - ODPP | $ 8 | $ 8 | |||
Issuance of common stock - Board of Directors (in shares) | 31,000 | ||||
Issuance of common stock - Board of Directors | 265 | $ 265 | |||
Ending balance (in shares) at Sep. 30, 2014 | 31,109,000 | ||||
Ending balance at Sep. 30, 2014 | 112,347 | $ 755,368 | (2,071) | 1,837 | (642,787) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 63,100 | 63,100 | |||
Translation adjustment | (990) | (990) | |||
Share-based compensation (in shares) | 948,000 | ||||
Stock-based compensation | 4,320 | $ 4,320 | |||
Stock option exercises (in shares) | 290,000 | ||||
Stock option exercises | 1,409 | $ 1,409 | |||
Purchase of treasury stock (in shares) | (6,870,000) | ||||
Purchase of treasury stock | (45,650) | (45,650) | |||
Issuance of common stock - ESPP (in shares) | 121,000 | ||||
Issuance of common stock - ESPP | $ 493 | $ 493 | |||
Issuance of common stock - ODPP (in shares) | 0 | ||||
Issuance of common stock - Board of Directors (in shares) | 78,000 | ||||
Issuance of common stock - Board of Directors | $ 413 | $ 413 | |||
Ending balance (in shares) at Sep. 30, 2015 | 25,676,000 | 25,676,000 | |||
Ending balance at Sep. 30, 2015 | $ 135,442 | $ 762,003 | (47,721) | 847 | (579,687) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 8,266 | 8,266 | |||
Translation adjustment | (268) | (268) | |||
Share-based compensation (in shares) | 284,000 | ||||
Stock-based compensation | 1,868 | $ 1,868 | |||
Special dividend paid | $ (39,214) | $ (39,214) | |||
Stock option exercises (in shares) | 45,340 | 45,000 | |||
Stock option exercises | $ 225 | $ 225 | |||
Issuance of common stock - ESPP (in shares) | 193,000 | ||||
Issuance of common stock - ESPP | $ 735 | $ 735 | |||
Issuance of common stock - ODPP (in shares) | 0 | ||||
Issuance of common stock - Board of Directors (in shares) | 46,000 | ||||
Issuance of common stock - Board of Directors | $ 263 | $ 263 | |||
Ending balance (in shares) at Sep. 30, 2016 | 26,244,000 | 26,244,000 | |||
Ending balance at Sep. 30, 2016 | $ 107,317 | $ 725,880 | $ (47,721) | $ 579 | $ (571,421) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 8,266 | $ 63,100 | $ 4,852 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation, amortization and accretion expense | 2,506 | 2,952 | 8,518 |
Stock-based compensation expense | 2,086 | 4,586 | 4,439 |
Deferred income taxes | 0 | 24,080 | (24,080) |
Gain on sale of an investment | 0 | 0 | (307) |
Provision adjustments related to doubtful accounts | 23 | 556 | 245 |
Provision adjustments related to product warranty | 376 | 838 | 2,114 |
Provision for losses on inventory purchase commitments | 0 | 0 | 306 |
Change in fair value of financial instruments | 0 | (122) | (34) |
Gain from change in estimate on ARO obligation | 0 | (845) | 0 |
Reclassification of foreign currency translation adjustment | 0 | (744) | 0 |
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 (gain) loss on disposal of equipment | (41) | 237 | (100) |
Settlement of customer related warranty claim | 0 | (442) | 0 |
Total non-cash adjustments | (276) | (58,408) | (8,899) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,171) | 3,526 | (3,290) |
Inventory | (10,904) | (3,440) | 5,481 |
Other assets | 148 | 359 | 2,879 |
Accounts payable | 3,179 | (3,231) | 3,113 |
Accrued expenses and other current liabilities | (4,794) | (5,823) | (3,135) |
Expiration of specific historical sales allowance | 0 | (345) | 0 |
Adjustments of unrecognized gross tax benefits | 0 | (207) | 0 |
Total change in operating assets and liabilities | (13,542) | (8,609) | 5,048 |
Net cash (used in) provided by operating activities | (5,552) | (3,917) | 1,001 |
Cash flows from investing activities: | |||
Cash proceeds from sale of investment | 0 | 0 | 307 |
Purchase of equipment | (5,779) | (2,799) | (3,001) |
(Increase) decrease in restricted cash | (590) | 1,107 | (667) |
Receipt of escrow funds from sale of assets | 1,853 | 0 | 0 |
Proceeds from disposal of property, plant and equipment | 100 | 50 | 100 |
Net cash (used in) provided by investing activities | (4,416) | 165,276 | (3,261) |
Cash flows from financing activities: | |||
Net (payments) proceeds from borrowings of credit facilities | 0 | (26,518) | 4,813 |
Repurchases of common stock | 0 | (45,650) | 0 |
Payment of special dividend | (39,214) | 0 | 0 |
Proceeds from stock plans | 960 | 1,902 | 1,763 |
Net cash (used in) provided by financing activities | (38,254) | (70,266) | 6,576 |
Effect of exchange rate changes on foreign currency | 242 | 105 | 267 |
Net (decrease) increase in cash and cash equivalents | (47,980) | 91,198 | 4,583 |
Cash and cash equivalents at beginning of period | 111,885 | 20,687 | 16,104 |
Cash and cash equivalents at end of period | 63,905 | 111,885 | 20,687 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Cash paid during the period for interest | 88 | 194 | 429 |
Cash paid during the period for income taxes | 124 | 938 | 0 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | |||
Changes in accounts payable related to purchases of equipment | 282 | 514 | 0 |
Issuance of common stock to Board of Directors | 263 | 413 | 265 |
Photovoltaics Business [Member] | |||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Gain on sale of business | 0 | (86,958) | 0 |
Cash flows from investing activities: | |||
Proceeds from sale of business | 0 | 149,936 | 0 |
Digital Products Business [Member] | |||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Gain on sale of business | 0 | (1,994) | 0 |
Cash flows from investing activities: | |||
Proceeds from sale of business | $ 0 | $ 16,982 | $ 0 |
Description of Business
Description of Business | 12 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Business Overview EMCORE Corporation together with 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 advanced 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 consolidated balance sheet as of September 30, 2016 or September 30, 2015 . The financial results of the Photovoltaics Business and the Digital Products Business are presented as "discontinued operations" on the consolidated statements of operations and comprehensive income for the fiscal years ended September 30, 2016 , 2015 and 2014. See Note 4 - Discontinued Operations for additional information. The notes to our consolidated financial statements relate to our continuing operations only, unless otherwise indicated. Liquidity and Capital Resources Historically, we have consumed cash from operations and until recently, 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 in prior periods, borrowings from our Credit Facility and capital markets transactions. 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 . 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 . 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 September 30, 2016 , cash and cash equivalents totaled $63.9 million and net working capital totaled approximately $93.0 million . Net working capital, calculated as current assets minus current liabilities, is a financial metric we use which represents available operating liquidity. For the fiscal year ended September 30, 2016 , we earned net income of $8.3 million . With respect to measures related to liquidity: We believe that our existing balances of cash and cash equivalents, cash flows from operations and amounts expected to be available under our Credit Facility (defined below) will provide us with sufficient financial resources to meet our cash requirements for operations, working capital, and capital expenditures for at least the next twelve months, and thereafter for the foreseeable future. At the discretion of our Board, we may use our existing balances of cash and cash equivalents to provide liquidity to our shareholders through one or more additional special dividends or the repurchase of additional shares of our outstanding common stock, make investments in our other businesses, pursue other strategic opportunities or a combination thereof. In addition, should we require more capital than what is generated by our operations, for example to fund significant discretionary activities, such as business acquisitions, 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, and/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. For the fiscal year ended September 30, 2016 , the following changes to our liquidity occurred: • Dividend Payment : On July 5, 2016 , the Company declared a special cash dividend of $1.50 per share, or a total of $39.2 million . The dividend was paid on July 29, 2016 to shareholders of record as of July 18, 2016 . See Note 13 - Equity for additional information. • Resolution of Outstanding Litigation : In June 2016 we collected $2.6 million in fees and costs from Sumitomo Electric Industries, Ltd. ("SEI") and $1.9 million held in escrow as the result of the favorable ruling from the SEI arbitration. See Note 12 - Commitments and Contingencies. • Credit Facility : On November 11, 2010, we entered into a Credit and Security Agreement (the “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 10 - Credit Facilities for additional information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation : Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the assets, liabilities, shareholders' equity, and operating results of the Company and its wholly owned subsidiaries. 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. Prior Period Reclassifications : On December 10, 2014 , we sold our Photovoltaics business to SolAero. On January 2, 2015 , we sold our Digital Products Business to NeoPhotonics. The Photovoltaics Asset Sale and Digital Asset Sale are reported as discontinued operations, which require retrospective restatement of prior periods to classify the results of operations as discontinued operations. No Photovoltaics or Digital Products assets or liabilities that were sold remain on the consolidated balance sheet as of September 30, 2015 . The financial results of the Photovoltaics Business and the Digital Products Business are presented as "discontinued operations" on the consolidated statements of operations and comprehensive income for the fiscal years ended September 30, 2016 , 2015 and 2014 . See Note 4 - Discontinued Operations for additional information. The notes to our consolidated financial statements relate to our continuing operations only, unless otherwise indicated. Reclassification of prior period amounts related to discontinued operations as a result of the sale of the Photovoltaics and Digital Products Businesses have been made to conform to the current period financial statement presentation. There were no other reclassifications except for amounts related to discontinued operations. Use of Estimates : The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, as of the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. The accounting estimates that require our most significant, difficult, and/or subjective judgments include: • the valuation of inventory, warrants and stock-based compensation; • the useful lives of assets and assessment of recovery of long-lived assets; • asset retirement obligations and contingencies, including litigation and indemnification-related; • the allowance for doubtful accounts and warranty accruals; and, • the valuation allowance for deferred tax assets. We develop estimates based on historical experience and on various assumptions about the future that are believed to be reasonable based on the best information available to us. Our reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. Concentration of Credit Risk : Financial instruments that may subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Our cash and cash equivalents are held in safekeeping primarily with Wells Fargo. When necessary, we perform credit evaluations on our customers' financial condition and occasionally we request deposits in advance of shipping product to our customers. These financial evaluations require significant judgment and are based on a variety of factors including, but not limited to, current economic trends, historical payment patterns, bad debt write-off experience, and financial review of the particular customer. Cash and Cash Equivalents : Cash and cash equivalents consists primarily of bank deposits and highly liquid short-term investments with a maturity of three months or less at the time of purchase. Restricted Cash : Restricted cash represents recently deposited cash that is temporarily restricted by our bank in accordance with the terms of the outstanding credit facility. Accounts Receivable : We regularly evaluate the collectability of our accounts receivable and maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to meet their financial obligations to us. The allowance is based on the age of receivables and a specific identification of receivables considered at risk of collection. We classify charges associated with the allowance for doubtful accounts as selling, general, and administrative expense. Inventory : Inventory is stated at the lower of cost or market, with cost being determined using the standard cost method that includes material, labor, and manufacturing overhead costs, which approximates weighted average cost. We write-down inventory once it has been determined that conditions exist that may not allow the inventory to be sold for its intended purpose or the inventory is determined to be excess or obsolete based on our forecasted future sales. The charge related to inventory write-downs is recorded as a cost of revenue. The majority of the inventory write-downs are related to inventory whose carrying value is in excess of net realizable value and on excess raw material components resulting from finished product obsolescence. We do not track the selling price of individual raw material components that have been previously written down or written off, since such raw material components usually are only a portion of the finished products and related sales price, and the timing of the consumption of impaired inventory and the sale of the related finished goods is relatively short. We evaluate inventory levels at least quarterly against sales forecasts on a significant part-by-part basis, in addition to determining its overall inventory risk. We have incurred, and may in the future incur charges to write-down our inventory. Property, Plant, and Equipment : Our property, plant, and equipment are recorded at cost. Plant and equipment are depreciated on a straight-line basis over the following estimated useful lives of the assets: Estimated Useful Life Equipment — three to ten years Furniture and fixtures — five years Computer hardware and software — five to seven years Leasehold improvements — three to six years Leasehold improvements are amortized over the lesser of the asset life or the lease term. Expenditures for repairs and maintenance are charged to expense as incurred. The costs for major renewals and improvements are capitalized and depreciated over their estimated useful lives of the related asset. The cost and related accumulated depreciation of the assets are removed from the accounts upon disposition and any resulting gain or loss is reflected in the consolidated statement of operations and comprehensive income. Valuation of Long-lived Assets : Long-lived assets consist primarily of property, plant, and equipment, net. Since our long-lived assets are subject to amortization, we review these assets for impairment in accordance with the provisions of Accounting Standards Codification ("ASC") 360, Property, Plant, and Equipment. We review long-lived assets for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. Our impairment testing of long-lived assets consists of determining whether the carrying amount of the long-lived asset (asset group) is recoverable, in other words, whether the sum of the future undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group) exceeds its carrying amount. The determination of the existence of impairment involves judgments that are subjective in nature and may require the use of estimates in forecasting future results and cash flows related to an asset or group of assets. In making this determination, we use certain assumptions, including estimates of future cash flows expected to be generated by these assets, which are based on additional assumptions such as asset utilization, the length of service that assets will be used in our operations, and estimated salvage values. Asset Retirement and Environmental Obligations : Pursuant to ASC 410, Asset Retirement and Environmental Obligations , an asset retirement obligation (“ARO” or “AROs”) is recorded when there is a legal obligation associated with the retirement of a tangible long-lived asset and the fair value of the liability can reasonably be estimated. Upon initial recognition of an asset retirement obligation, a company increases the carrying amount of the long-lived asset by the same amount as the liability. Over time, the liabilities are accreted for the change in their present value through charges to operations costs. The initial capitalized costs are depleted over the useful lives of the related assets through charges to depreciation, and/or amortization. If the fair value of the estimated ARO changes, an adjustment is recorded to both the ARO and the asset retirement cost. Revisions in estimated liabilities can result from revisions of estimated inflation rates, escalating retirement costs, and changes in the estimated timing of settling ARO liabilities. We have known asset retirement conditions, such as certain asset decommissioning and restoration of rented facilities to be performed in the future. We previously completed a review of our asset retirement and environmental obligations and we recorded an asset retirement obligation with an offset to fixed assets totaling $1.8 million as of September 30, 2015 . See Note 12 - Commitments and Contingencies for additional information. Fair Value of Financial Instruments : We determine the fair value of our financial instruments in accordance with ASC 820, Fair Value Measurements and Disclosures. Revenue Recognition : Revenue is recognized upon shipment, provided persuasive evidence of a contract exists, the price is fixed, the product meets our customer's specifications, title and ownership have transferred to the customer, and there is reasonable assurance of collection of the sales proceeds. The majority of our products have shipping terms that are free on board or free carrier alongside (FCA) shipping point, which means that we fulfill our delivery obligation when the goods are handed over to the freight carrier at our shipping dock. This means the customer bears all costs and risks of loss or damage to the goods from that point. In certain cases, we pay for the cost of shipping and insurance to the customer's designated location but we invoice those costs to the customer. Under this arrangement, revenue is recognized under FCA shipping point terms. We account for shipping and related transportation costs by recording the charges that are invoiced to customers as revenue, with the corresponding cost recorded as cost of revenue. In those instances where inventory is maintained at a consigned location, revenue is recognized only when our customer pulls product for use and after title and ownership has transferred to the customer. Any warranty cost and remaining obligations that are inconsequential or perfunctory are accrued when the corresponding revenue is recognized. Distributors: We use a number of distributors around the world and recognize revenue upon shipment of product to these distributors. Title and risk of loss pass to the distributors upon shipment, and our distributors are contractually obligated to pay us on standard commercial terms, just like direct customers. We do not sell to our distributors on consignment and, except in the event of product discontinuance, do not give distributors a right of return. Contract Manufacturers: Prior to certain customers accepting product that is manufactured at one of our contract manufacturers, these customers require that they first qualify the product and manufacturing processes at our contract manufacturer. The customers' qualification process determines whether the product manufactured at our contract manufacturer achieves their quality, performance, and reliability standards. After a customer completes the initial qualification process, we receive approval to ship qualified product to that customer. As part of the manufacturing process at our contract manufacturers, the finished product is tested prior to shipment to the customer using the same criteria that our customer uses to test product it receives. Revenue is recognized upon shipment of customer-qualified product, provided persuasive evidence of a contract exists, the price is fixed, the product meets our customer's specifications, title and ownership have transferred to the customer, and there is reasonable assurance of collection of the sales proceeds. Product Warranty Reserves : We provide our customers with limited rights of return for non-conforming shipments and warranty claims for certain products. Pursuant to ASC 450, Contingencies, we make estimates of product warranty expense using historical experience rates as a percentage of revenue and accrue estimated warranty expense as a cost of revenue. We estimate the costs of our warranty obligations based on historical experience of known product failure rates and anticipated rates of warranty claims, use of materials to repair or replace defective products, and service delivery costs incurred in correcting product issues. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. Should our actual experience relative to these factors differ from our estimates, we may be required to record additional warranty reserves. Alternatively, if we provide more reserves than needed, we may reverse a portion of such provisions in future periods. Litigation Contingencies : We are subject to various legal proceedings, claims, and litigation, either asserted or unasserted that arise in the ordinary course of business. 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. Research and Development : Research and development costs are charged as an expense when incurred. Stock-Based Compensation : Stock-based compensation expense is measured at the stock option grant date, based on the fair value of the award, and is recorded to cost of revenue, sales, general, and administrative, and research and development expense based on an employee's responsibility and function over the requisite service period. We use the Black-Scholes option-pricing model and the straight-line attribution approach to determine the fair value of stock-based awards in accordance with ASC 718, Compensation. This option-pricing model requires the input of highly subjective assumptions, including the option's expected life, the price volatility and risk-free interest rate of the underlying stock, and expected forfeitures. Foreign Exchange : We recognize gains and losses due to the effect of exchange rate changes on foreign currency primarily due to our operations in China. The assets and liabilities of our foreign operations are translated from their respective functional currencies into U.S. dollars at the rates in effect at the consolidated balance sheet dates, and the revenue and expense amounts are translated at the average rate during the applicable periods reflected on the consolidated statements of operations and comprehensive income. Foreign currency translation adjustments are recorded as other comprehensive income. Gains and losses from foreign currency transactions denominated in currencies other than the U.S. dollar, both realized and unrealized, are recorded as foreign exchange (loss) gain on our consolidated statements of operations and comprehensive income. Income Taxes : In accordance with ASC 740, Income Taxes, deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. We record valuation allowances against all deferred tax assets for amounts which are not considered more likely to be realized. Comprehensive Income : ASC 220, Comprehensive Income , establishes standards for reporting and display of comprehensive income and its components in financial statements. It requires that all items that are required to be recognized under accounting standards as components of comprehensive income be reported in the financial statement that is displayed with the same prominence as other financial statements. Our comprehensive income consists of both net income and foreign currency translation adjustments and it is presented in the accompanying consolidated statements of operations and comprehensive income. Income (Loss) Per Share : We are required, in periods in which we have net income, to calculate basic and diluted income per share using the two-class method. The two-class method is required because our unvested restricted stock awards are considered participating securities as these securities have the right to receive dividends or dividend equivalents should we declare dividends on our common stock. Under the two-class method, during periods of net income, net income is first reduced for distributions declared on all classes of securities to arrive at undistributed earnings. The undistributed earnings are then allocated on a pro-rata basis between the common shareholders and participating securities holders. The weighted-average number of common shares and participating securities outstanding during the period is then used to calculate basic and diluted income per share. In periods in which we have a net loss, basic loss per share is calculated by dividing the loss attributable to common shareholders by the weighted-average number of common shares outstanding during the period. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Sep. 30, 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 Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 consolidated statement of operations and comprehensive income. 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 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 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 Consolidated Financial Statements. • In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) : Classification of Certain Cash Receipts and Cash Payments , which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. This guidance is effective for fiscal years beginning after December 15, 2017. The new standard will be effective for our fiscal year beginning October 1, 2018 and earlier adoption is permitted. We are currently evaluating the impact of this accounting standard update on our 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, and early adoption is permitted. The Company early adopted the new standard in fiscal year 2016 and the accounting standard update did not have an impact on our 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 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 Consolidated Financial Statements. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Sep. 30, 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 fiscal year ended September 30, 2015, 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 fiscal year ended September 30, 2016. No assets and liabilities of the Photovoltaics Business that were sold remain on the consolidated balance sheet as of September 30, 2016 and 2015 . The financial results of the Photovoltaics Business are reported as discontinued operations for the fiscal years ended September 30, 2016 , 2015 and 2014 . The following table presents the statements of operations for the discontinued operations of the Photovoltaics Business: For the Fiscal Years Ended September 30, (in thousands) 2016 2015 2014 Revenue $ — $ 12,614 $ 73,226 Cost of revenue (159 ) 8,245 52,317 Gross profit 159 4,369 20,909 Operating (income) expense (868 ) 2,240 6,654 Other income — 779 17 Gain on sale of discontinued operations — 86,958 — Income from discontinued operations before income tax benefit (expense) 1,027 89,866 14,272 Income tax benefit (expense) 20 (28,700 ) (5,412 ) Income from discontinued operations, net of tax $ 1,047 $ 61,166 $ 8,860 Included in discontinued operations during the fiscal year ended September 30, 2016 were $0.4 million of New Mexico incentive tax credits received which were allocated to expense captions based on how the tax credits were earned. The credits received resulted in cash refunds. There were no incentive tax credits received during the fiscal years ended September 30, 2015 and 2014 . 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 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 . During the fiscal year ended September 30, 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 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 which 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 fiscal year ended September 30, 2016 . See Note 9 - Accrued Expenses and Other Current Liabilities . Included in cost of revenue for the fiscal year ended September 30, 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 fiscal year ended September 30, 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. See Note 12 - Commitments and Contingencies . No assets or liabilities from the Digital Products Business remain on the consolidated balance sheet as of September 30, 2016 and 2015 . The financial results of the Digital Products Business are reported as discontinued operations for the fiscal years ended September 30, 2016 , 2015 and 2014 . The following table presents the statements of operations for the discontinued operations of the Digital Products Business: For the Fiscal Years Ended September 30, (in thousands) 2016 2015 2014 Revenue $ — $ 11,944 $ 46,038 Cost of revenue (500 ) 9,107 46,387 Gross profit (loss) 500 2,837 (349 ) Operating (income) expense (292 ) 2,800 12,683 Recognition of previously deferred gain on sale of assets 3,804 — — Gain on sale of discontinued operations — 1,994 — Income (loss) from discontinued operations before income tax benefit 4,596 2,031 (13,032 ) Income tax benefit 4 2,175 4,942 Income (loss) from discontinued operations, net of tax $ 4,600 $ 4,206 $ (8,090 ) There were no incentive tax credits received during the fiscal years ended September 30, 2016 , 2015 and 2014 . |
Fair Value Accounting
Fair Value Accounting | 12 Months Ended |
Sep. 30, 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, other current assets, and accounts payable approximate fair value because of the short maturity of these instruments. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The components of accounts receivable consisted of the following: As of As of (in thousands) September 30, September 30, 2015 Accounts receivable, gross $ 18,468 $ 17,781 Allowance for doubtful accounts (36 ) (462 ) Accounts receivable, net $ 18,432 $ 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. The following table summarizes changes in the allowance for doubtful accounts for the fiscal years ended September 30, 2016 , 2015 and 2014 . Allowance for Doubtful Accounts (in thousands) For the Fiscal Years Ended September 30, 2016 2015 2014 Balance at beginning of period $ 462 $ 116 $ 22 Provision adjustment - expense, net of recoveries 23 556 54 Write-offs and other adjustments - additions (deductions) to receivable balances (449 ) (210 ) 40 Balance at end of period $ 36 $ 462 $ 116 |
Inventory
Inventory | 12 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The components of inventory consisted of the following: As of As of (in thousands) September 30, September 30, 2015 Raw materials $ 16,095 $ 9,261 Work in-process 5,687 3,207 Finished goods 5,899 4,662 Inventory balance at end of period $ 27,681 $ 17,130 Current portion $ 24,150 $ 17,130 Non-Current portion 3,531 — Inventory balance at end of period $ 27,681 $ 17,130 The non-current inventory balance of $3.5 million as of September 30, 2016 is comprised entirely of raw materials which we acquired as part of a last time purchase as a result of the vendor announcing they would cease manufacturing a part. |
Property, Plant, and Equipment,
Property, Plant, and Equipment, net | 12 Months Ended |
Sep. 30, 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) September 30, September 30, 2015 Equipment $ 28,247 $ 24,913 Furniture and fixtures 1,109 1,109 Computer hardware and software 2,860 2,177 Leasehold improvements 1,896 1,480 Construction in progress 1,779 875 Property, plant, and equipment, gross 35,891 30,554 Accumulated depreciation (23,678 ) (21,629 ) Property, plant, and equipment, net $ 12,213 $ 8,925 Depreciation expense totaled $2.4 million , $2.1 million and $2.5 million during the fiscal years ended September 30, 2016 , 2015 and 2014 , respectively. Impairment Testing The impairment tests for our long-lived assets involve comparing fair value to the carrying amount. If the carrying value of the long-lived assets (asset group) exceeds the estimated undiscounted cash flows expected to be generated by the assets, impairment may exist. We derive fair value using both a guideline public company valuation method, a market based approach, and on a lesser extent, the discounted cash flow valuation method, an income based approach. A guideline public company valuation method entails a comparison to publicly traded companies within similar industry, product lines, market, growth, margins and risk and is generally based on published data regarding the public companies' stock price, revenue, and earnings. The discounted cash flow valuation method is based on discounted cash flow models using assumptions about revenue growth rates, appropriate discount rates relative to risk, and estimates of terminal value. As of September 30, 2016 , we determined no impairment triggers were present, and therefore, an impairment test was not performed. As of September 30, 2015 , we performed an impairment test on long-lived assets. The impairment test was triggered by continued losses from operations realized in fiscal year 2015. The impairment testing indicated that no impairment existed and that future undiscounted cash flows exceeded the carrying value. As of September 30, 2014 , we performed an impairment test on long-lived assets. The impairment test was triggered by a change in long-term financial and cash flow forecasts. The impairment testing indicated that no impairment existed and that future undiscounted cash flows exceeded the carrying value. The Company will assess its long-lived assets for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Sep. 30, 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) September 30, September 30, 2015 Compensation $ 3,628 $ 3,036 Warranty 871 1,664 Termination fee — 2,775 Professional fees 761 1,147 Customer deposits 38 133 Deferred revenue — 65 Self insurance 25 606 Income and other taxes 944 1,038 Severance and restructuring accruals 642 1,448 Other 775 1,190 Accrued expenses and other current liabilities $ 7,684 $ 13,102 Compensation : Compensation is primarily comprised of accrued employee salaries, taxes and benefits. Termination fee : The termination fee relates to the contractual amount owed to a third party for terminating a prior joint venture agreement related to our Broadband and Digital Products lines of business. In July 2016, the Company and the third party agreed in principle to a final settlement amount of $2.9 million related to the termination fee, for which the Company recorded an increase in the accrued termination fee of $150,000 . Of this amount, $72,000 was recorded in continuing operations and $78,000 was recorded within discontinued operations in the Digital Products Business. In September 2016, the Company paid the $2.9 million accrual related to the termination fee. 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 September 30, 2016 relates to the amounts the Company is liable for prior to discontinuing the self-insurance plan. Income and other taxes : For the fiscal year ended September 30, 2016 , the Company recorded income tax expense from continuing operations of approximately $14,000 , and $24,000 of income tax benefit within income from discontinued operations. For the fiscal year ended September 30, 2015 , the Company reported $2.2 million of income tax benefit from continuing operations losses and $26.5 million of income tax expense within income from discontinued operations. For the fiscal year ended September 30, 2014 , the Company reported $24.6 million of income tax benefit from continuing operations losses and $0.5 million of income tax expense within income from discontinued operations. The income tax expense within discontinued operations includes estimated alternative minimum tax and other adjustments prescribed by ASC 740 in allocating expected annual income tax expense (benefit) between continuing operations and discontinued operations. During the fiscal year ended September 30, 2015 , the Company utilized $24.1 million of deferred tax assets. The Company made a payment for alternative minimum taxes and the remaining income tax expense was offset mainly through utilization of $24.1 million of deferred tax assets and net operating loss carry forwards. Also see Note 11 - Income and other Taxes . 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 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 fiscal year ended September 30, 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 in May 2016 . In December 2015 , we entered into an agreement to terminate this lease and related obligations, including AROs, 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 fiscal year ended September 30, 2016 . See Note 4 - Discontinued Operations . On June 7, 2016 , Mark Weinswig notified the Company that he would resign as the Company's Chief Financial Officer, effective as of June 20, 2016 (the “Separation Date”). The Company and Mr. Weinswig entered into a separation agreement and general release, dated June 7, 2016 (the "Separation Agreement"), which includes mutual releases by Mr. Weinswig and the Company of all claims related to Mr. Weinswig's employment and service relationship with, and termination of employment and service from, the Company. The Separation Agreement provides for, among other things, the continuation of his base salary for 64 weeks , benefits for 16 months , outplacement services for a period of not more than 1 year and with a value not in excess of $15,000 and immediate vesting of all his outstanding non-vested equity awards, other than his most recent equity award. These payments are not contingent upon any future service by Mr. Weinswig. The Company recorded a charge of approximately $0.4 million in the fiscal year ended September 30, 2016 related to Mr. Weinswig's Separation Agreement. In an effort to better align our current and future business operations, in May 2016 the Company announced a reduction in its workforce by approximately 30 individuals and recorded a charge for severance for the affected employees in the amount of $0.3 million in the fiscal year ended September 30, 2016 . Our severance and restructuring-related accruals specifically relate to the separation agreements and reduction in force 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, 2014 $ 1,317 $ — $ 1,317 Expense - charged to accrual 1,216 737 1,953 Payments and accrual adjustments (1,423 ) (399 ) (1,822 ) Balance as of September 30, 2015 $ 1,110 $ 338 $ 1,448 Expense - charged to accrual 728 — 728 Payments and accrual adjustments (1,196 ) (338 ) (1,534 ) Balance as of September 30, 2016 $ 642 $ — $ 642 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 Fiscal Years Ended September 30, (in thousands) 2016 2015 2014 Balance at beginning of period $ 1,664 $ 2,816 $ 3,881 Provision for product warranty - expense 376 838 1,308 Adjustments and utilization of warranty accrual (1,169 ) (1,990 ) (2,373 ) Balance at end of period $ 871 $ 1,664 $ 2,816 The decrease in adjustments and utilization of the warranty accrual for the fiscal year ended September 30, 2016 compared to the same period in 2015 is the result of claims processed for one specific customer in continuing operations and the adjustment of two customer claims associated with our discontinued operations in the fiscal year ended September 30, 2015 . |
Credit Facilities
Credit Facilities | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Credit Facilities | Credit Facilities On November 11, 2010, we entered into a Credit and Security Agreement (the “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 September 30, 2016 , there were no amounts outstanding under this Credit Facility and the Company was in compliance with all financial covenants. Also, as of September 30, 2016 , the Credit Facility had approximately $0.5 million reserved for one stand-by letter of credit and $10.9 million available for borrowing. As of November 30, 2016 , there was no outstanding balance under this Credit Facility. |
Income and other Taxes
Income and other Taxes | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income and other Taxes | Income and other Taxes The Company's income (loss) from continuing operations before income taxes consisted of the following: Income (loss) from continuing operations before income taxes For the Fiscal Years Ended September 30, (in thousands) 2016 2015 2014 Domestic $ 1,735 $ (5,713 ) $ (19,792 ) Foreign 898 1,250 (676 ) Income (loss) from continuing operations before income taxes $ 2,633 $ (4,463 ) $ (20,468 ) The Company's income tax (benefit) expense consisted of the following: Income tax expense (benefit) For the Fiscal Years Ended September 30, (in thousands) 2016 2015 2014 Federal: Current $ — $ — $ — Deferred — (1,835 ) (21,285 ) — (1,835 ) (21,285 ) State: Current (117 ) — — Deferred — (356 ) (2,454 ) (117 ) (356 ) (2,454 ) Foreign: Current 131 — — Deferred — — (811 ) 131 — (811 ) Total income tax expense (benefit) $ 14 $ (2,191 ) $ (24,550 ) EMCORE Corporation is incorporated in the state of New Jersey. A reconciliation of the provision for income taxes, with the amount computed by applying the statutory U.S. federal and state income tax rates to continuing operations income before provision for income taxes is as follows: Provision for Income Taxes For the Fiscal Years Ended September 30, (in thousands) 2016 2015 2014 Income tax benefit computed at U.S. federal statutory rate $ 896 $ (1,518 ) $ (6,959 ) State tax expense benefit, net of U.S. federal effect (41 ) (356 ) (776 ) Foreign tax rate differential (94 ) (269 ) 1,041 Effect due to change in tax rate 626 — — Release of valuation allowance-domestic — — (17,856 ) Other (57 ) 108 — State net operating loss carryforward adjustment 685 — — Change in valuation allowance (2,001 ) (156 ) — Income tax expense (benefit) $ 14 $ (2,191 ) $ (24,550 ) Effective tax rate 0.5 % 49.1 % 119.9 % Significant components of our deferred tax assets are as follows: Deferred Tax Assets As of September 30, 2016 As of September 30, 2015 (in thousands) Deferred tax assets: Federal net operating loss carryforwards $ 147,449 $ 147,704 Foreign net operating loss carryforwards 51 66 Income tax credit carryforwards 3,062 3,033 Inventory reserves 2,614 2,283 Accounts receivable reserves 14 149 Accrued warranty reserve 328 587 State net operating loss carryforwards 7,009 9,527 Stock compensation 3,334 2,837 Deferred compensation 896 1,080 Fixed assets and intangibles 124 1,646 Other 728 1,388 Total deferred tax assets 165,609 170,300 Valuation allowance (165,609 ) (170,300 ) Net deferred tax assets $ — $ — At September 30, 2014 , the Company determined that it was more likely than not that certain deferred tax assets would be realized upon the sale of the Photovoltaic Business in fiscal year 2015 . As a result, a net deferred tax valuation allowance release of $24.6 million was recorded as an income tax benefit during fiscal year 2014 . The sale of the Photovoltaic Business closed on December 10, 2014 and the Company realized a gain on the transaction. During the fiscal year ended September 30, 2015 , the Company utilized the $24.6 million of deferred tax assets. The Company paid alternative minimum taxes of $0.6 million during the fiscal year ended September 30, 2015 and the remaining income tax expense will be offset mainly through utilization of $24.1 million of capital loss and utilization of net operating loss carry forwards. For the fiscal years ended September 30, 2016 , 2015 and 2014 , the Company recorded income tax (expense) benefit from continuing operations of approximately $(14,000) , $2.2 million , and $24.6 million , respectively. For the fiscal years ended September 30, 2016 , 2015 and 2014 , the Company recorded income tax benefit (expense) from discontinued operations of approximately $24,000 , $(26.5) million and $(0.5) million , respectively, 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 and foreign tax expense included within continuing operations. For the fiscal years ended September 30, 2016 , 2015 and 2014 , the effective tax rate on continuing operations was 0.5% , 49.1% and 119.9% , respectively. The lower tax rate for the fiscal year ended September 30, 2016 was primarily due to permanent differences, state tax benefits, foreign tax rate differentials and changes in the Company's estimated results in the current year as compared to the prior year. The lower tax rate for fiscal year 2015 was primarily due to permanent differences, state tax benefits, foreign tax rate differentials, and release of state taxes associated with uncertain tax positions. The higher tax rate for fiscal year 2014 was mainly attributable to the partial release of the valuation allowance. 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 September 30, 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 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 fiscal years ended September 30, 2016 and 2015 , we decreased previously recorded unrecognized tax benefits by $0.1 million and $0.2 million , respectively. Of the fiscal year 2016 amount of unrecognized tax benefits, $112,800 was recognized in income tax expense from continuing operations and $12,000 was recognized in income tax expense from discontinued operations. Of the fiscal year 2015 amount, $0.1 million was recognized in income tax benefit from continuing operations and $0.1 million was recognized in income tax expense from discontinued operations. During the fiscal year ended September 30, 2014 , there were no material increases or decreases in unrecognized tax benefits. As of September 30, 2016 and September 30, 2015 , we had approximately $0.3 million of interest and penalties accrued as tax liabilities on our balance sheet. As of September 30, 2016 , the Company had net operating loss carryforwards for U.S. federal income tax purposes of approximately $433.7 million which begin to expire in 2021 . As of September 30, 2016 , the Company had foreign net operating loss carryforwards of $0.2 million which begin to expire in 2021 , as well as state net operating loss carryforwards of approximately $139.3 million which began to expire in 2015 . As of September 30, 2016 , the Company also had tax credits (primarily foreign income and U.S. research and development tax credits) of approximately $3.0 million . The research credits will begin to expire in 2018 . Utilization of net operating loss and tax credit carryforwards are subject to a substantial annual limitation due to the ownership change limitations set forth in Internal Revenue Code Section 382 and similar state provisions. The Company prepared an Internal Revenue Code 382 analysis to determine the annual limitations on the Company's consolidated net operating loss carryforwards. As a result of the $433.7 million of U.S. net operating loss carryforwards, approximately $226.5 million is subject to an annual limitation and $207.2 million of the net operating losses are not subject to an annual limitation. Such annual limitations could result in the expiration of the net operating loss and tax credit carryforwards before utilization. The Company’s Board of Directors has adopted a Tax Benefits Preservation Plan (the “Rights Plan”) to help preserve the value of our net operating losses and tax credit carryforwards by reducing the risk of limitation of these deferred tax assets. The Rights Plan was approved by the Company’s shareholders on March 10, 2015. The Rights Plan is intended to reduce the likelihood that the Company will experience an ownership change for purposes of Internal Revenue Code Section 382 by discouraging any person or group from becoming a “5% shareholder” or increasing their ownership of the Company’s common stock if they are already a “5% shareholder.” A reconciliation of the beginning and ending amount of unrecognized gross tax benefits is as follows: Unrecognized Gross Tax Benefit (in thousands) Balance as of September 30, 2014 $ 620 Adjustments based on tax positions related to the current year — Adjustments based on tax positions of prior years (207 ) Balance as of September 30, 2015 413 Adjustments based on tax positions related to the current year — Adjustments based on tax positions of prior years (125 ) Balance as of September 30, 2016 $ 288 We believe that it is reasonably possible that all of the uncertain tax position will be paid or settled within the next 12 months. We file income tax returns in the U.S. federal, state, and local jurisdictions. In April 2015 the IRS completed its exam of the September 30, 2012 tax return and the Company was notified there were no changes to the originally filed return. There are no state income tax returns under examination. The following tax years remain open to assessment for each of the more significant jurisdictions where we are subject to income taxes: after fiscal year 2013 for the U.S. federal, after fiscal year 2012 for the State of New Mexico, and after fiscal year 2012 for the state of California. Included in discontinued operations during the fiscal years ended September 30, 2016 , 2015 and 2014 were $0.4 million , $0.2 million and $0.8 million , respectively, of New Mexico incentive tax credits received. The amount received was allocated to cost of goods sold, selling, general and administrative and research and development expense primarily based on the number of employees allocated to the related departments. These credits resulted in cash refunds and a reduction of future payroll and compensation taxes. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases : Estimated future minimum lease payments under non-cancelable operating leases with an initial or remaining term of one year or more are $0.8 million , $0.3 million , $0.3 million , $0.2 million , and $0.1 million for the fiscal years ended September 30, 2017 , 2018 , 2019 , 2020 and 2021 , respectively. Operating Lease Obligations : We lease certain 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 $1.4 million , $1.3 million and $1.7 million for the fiscal years ended September 30, 2016 , 2015 and 2014 , respectively. There are no off-balance sheet arrangements other than our operating leases. Asset Retirement Obligation : We have known conditional AROs, 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's were estimated by discounting projected cash flows over the estimated life of the related assets using credit adjusted risk-free rates which ranged from 1.20% to 4.20% . There were no ARO's settled during the fiscal years ended September 30, 2015 and 2014. See discussion below regarding ARO settlements during the fiscal year ended September 30, 2016 . Accretion expense of $0.1 million , $0.1 million and $0.2 million was recorded during the fiscal years ended September 30, 2016 , 2015 , and 2014 , 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 fiscal year ended September 30, 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. In May 2016 , which was retroactively effective on February 1, 2016, the Company entered into a five year lease agreement for facilities in Beijing, China where some manufacturing work is to be performed. In connection with the lease agreement, the Company has recorded an ARO asset and liability in the amount of $48,000 at September 30, 2016 . During the fiscal year ended September 30, 2016 , 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 associated with the Newark facility by $0.3 million . The following table summarizes ARO activity: Asset Retirement Obligations September 30, (in thousands) 2016 Balance at September 30, 2015 $ 1,774 Accretion expense 66 Additions in current year 48 Payments and revision in estimated cash flows (270 ) Balance at September 30, 2016 $ 1,618 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 September 30, 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, in accordance with the terms of 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 was entitled to collect the $1.9 million held in escrow, which was received in June 2016. The Company was also entitled to recover $2.6 million in fees and costs from SEI, which was received in June 2016. During the fiscal year ended September 30, 2016 , we recognized a gain associated with the release of $3.4 million of previously recorded gain associated with the sale of assets 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. During the fiscal year ended September 30, 2016 , we recognized the $2.6 million recovery of previously incurred litigation fees and costs incurred by EMCORE within operating income as such represented the recovery of previously incurred legal expenses. See Note 4 - 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 to 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; (6) unfair competition under the California Business and Professions Code § 17200 et seq.; and (7) penalties under the Private Attorneys General Act. 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 exchange for a one-time cash payment offered by the Company, certain current and former employees have agreed to release the Company from all potential claims related to the matters alleged in the Mirasol lawsuit. The Company has recorded an accrual for these amounts at September 30, 2016 that is not material to the Company's results of operations, financial condition or cash flows, which has been recorded within Operating Expenses for the fiscal year ended September 30, 2016 . The Company intends to defend itself vigorously against the claims asserted in the lawsuit. While the Company believes that it has valid and meritorious defenses with respect to the allegations, the ultimate liability to the Company, including penalties and fines associated with the remaining claims, is subject to many uncertainties and may range from $39,000 to $2.6 million . c) Mirasol Wrongful Termination Lawsuit In August 2016, EMCORE was served with a second lawsuit by its former employee, Christina Mirsaol, in the Superior Court of Los Angeles alleging that the Company violated California’s employment laws in terminating her employment in November 2015. By her unverified Complaint, Mirasol asserts five causes of action: (1) wrongful termination in violation of public policy; (2) discrimination on the basis of disability and/or medical condition; (3) failure to accommodate; (4) failure to engage in the interactive process; and (5) intentional infliction of emotional distress. On September 26, 2016, Mirasol dismissed the fifth cause of action for intentional infliction of emotional distress. Mirasol alleges that EMCORE wrongfully terminated her at the conclusion of a Family and Medical Act leave, without engaging in the interactive process of offering to provide her with reasonable accommodations. The plaintiff is seeking general, special, and punitive damages. The Company intends to defend itself vigorously against the claims asserted in the lawsuit. |
Equity
Equity | 12 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Equity | Equity Dividend Payment On July 5, 2016 , the Company declared a special cash dividend of $1.50 per share, or a total of $39.2 million . The dividend was paid on July 29, 2016 to shareholders of record as of July 18, 2016 . The dividend has been reflected as a reduction of common stock during the fiscal year ended September 30, 2016 in the Consolidated Statements of Shareholders' Equity. Under the terms of our credit facility with Wells Fargo Bank, N. A., we are restricted from paying dividends that result in the liquidity of the Company being less than $25.0 million after paying the dividend if any amounts are outstanding under our credit facility. Common Stock Repurchase In April 2015 , EMCORE's Board of Directors authorized the Company to repurchase $45.0 million of shares of its common stock. On May 15, 2015 , we announced the commencement of a modified "Dutch auction" tender offer to purchase for cash shares of our common stock (the "Tender Offer"). On June 15, 2015 , we completed 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. 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 ("2010 Plan"), and • the 2012 Equity Incentive Plan ("2012 Plan"). We issue new shares of common stock to satisfy awards issued under our Equity Plans. The Board of Directors (the “Board”) and stockholders of the Company previously approved, amendments to the 2012 Plan that among other changes, (1) increased 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) made 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) implemented 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 allowed the administrator to permit or require participants to defer awards granted under the 2012 Plan, (5) extended the term of the 2012 Plan until March 11, 2026 ; and (6) extended the performance-based award feature of the 2012 Plan through the first annual meeting of stockholders that occurs in 2021 . As a result of the March 2016 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. As of September 30, 2016 , there were 921,527 shares available for issuance under the 2012 Plan after equitably and proportionately adjusting such share limit to preserve the intended effect of the overall share limit following the special cash dividend declared by the Board and paid to shareholders in July 2016. 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 fiscal year ended September 30, 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 27,900 $6.01 Share adjustment for special dividend 185,726 $17.09 Exercised (45,340 ) $4.97 $ 87 Forfeited (9,353 ) $5.49 Expired (105,054 ) $27.72 Outstanding as of September 30, 2016 750,338 $16.84 2.31 $ 479 Exercisable as of September 30, 2016 680,859 $17.06 1.64 $ 406 Vested and expected to vest as of September 30, 2016 736,937 $18.08 2.19 $ 466 (*) 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 fiscal years ended September 30, 2015 and 2014, the intrinsic value of options exercised was $0.3 million and $0.1 million , respectively. As of September 30, 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 3.7 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 fiscal year ended September 30, 2015. With the dividend of $1.50 per share declared on July 5, 2016 , payable to shareholders of record as of the close of business on July 18, 2016 and paid by the Company on July 29, 2016 , the number of shares subject to all outstanding options as of that dividend payable date and the exercise price of each such options were equitably and proportionately adjusted to preserve the intrinsic value of the outstanding awards in accordance with the original terms of the options. The impact of the dividend adjustment to outstanding options as of the dividend payable date has increased the exercisable, vested and expected to vest shares in the above table. Valuation Assumptions The fair value of each stock option grant, excluding the adjustment for the special dividend, 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 Fiscal Years Ended September 30, 2016 2015 2014 Black-Scholes weighted average assumptions: Expected dividend rate — % — % — % Expected stock price volatility rate 60.9 % 66.1 % 92.8 % Risk-free interest rate 1.6 % 1.8 % 1.9 % Expected term (in years) 6.0 6.0 6.0 Weighted average grant date fair value per share of stock options granted: $ 3.40 $ 3.73 $ 3.53 Expected Dividend Yield: The Black-Scholes valuation model calls for a single expected dividend rate as an input. Although we have paid a special dividend in July 2016, no dividend rate is assumed in the valuation. Expected Stock Price Volatility Rate: The fair values of stock-based payments were valued using the Black-Scholes valuation method with a volatility factor based on our historical common stock prices. Risk-Free Interest Rate : The risk-free interest rate used in the Black-Scholes valuation method was based on the implied yield that was currently available on U.S. Treasury zero-coupon notes with an equivalent remaining term. Where the expected terms of stock-based awards do not correspond with the terms for which interest rates are quoted, we performed a straight-line interpolation to determine the rate from the available maturities. Expected Term: Expected term represents the period that our stock-based awards are expected to be outstanding and was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior as influenced by changes to the terms of stock-based awards. Estimated Pre-vesting Forfeitures: We are required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. We use historical data to estimate pre-vesting option forfeitures and record stock-based compensation expense only for those awards that are expected to vest. If we use different assumptions for estimating stock-based compensation expense in future periods or if actual forfeitures differ materially from our estimated forfeitures, the change in our non-cash stock-based compensation expense could adversely affect our results of operations. 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 fiscal year ended September 30, 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 449,250 $5.53 Share adjustment for special dividend 200,061 $0.00 Vested (283,553 ) $5.17 Forfeited (57,573 ) $5.04 Non-vested as of September 30, 2016 878,416 $4.25 As of September 30, 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 2.4 years. The 0.9 million outstanding non-vested RSUs have an aggregate intrinsic value of approximately $5.0 million and a weighted average remaining contractual term of 1.4 years. For the fiscal years ended September 30, 2016 , 2015 and 2014 , the intrinsic value of RSUs vested was approximately $1.6 million , $4.6 million and $2.4 million , respectively. Of the 0.9 million outstanding non-vested RSUs at September 30, 2016 , approximately 0.8 million are expected to vest and have an aggregate intrinsic value of approximately $4.7 million and a weighted average remaining contractual term of 1.4 years. For the fiscal years ended September 30, 2015 and 2014 , the weighted average grant date fair value of RSUs granted was $5.38 and $4.89 , respectively. In connection with the appointment of Mr. Jikun Kim as the Company's Chief Financial Officer on June 20, 2016 , he was granted a time based equity award of 150,000 RSUs that are scheduled to vest in five equal annual installments on each of the first five anniversaries of his hiring date. On October 18, 2016, the Company granted 70,000 RSUs with a grant date fair value of $0.4 million to its CEO, Jeff Rittichier, that will vest in 4 equal annual installments beginning on October 18, 2017. Also on that date the Company granted Mr. Rittichier 100,000 target Performance Based Restricted Stock Units (PSUs) with a grant date fair value of $0.7 million and Mr. Kim 195,180 target PSUs with a grant date fair value of $1.4 million . The PSUs to be issued are based on the total shareholder return of EMCORE’S stock compared to the Russell Microcap Index. The total number of shares to be issued to each individual may range from zero ( 0 ) to 200% of the target PSUs granted. Between zero ( 0 ) and 200% of one third of the target PSUs will vest, if at all, on each of October 17, 2017, 2018 and 2019. With the dividend of $1.50 per share declared on July 5, 2016 , payable to shareholders of record as of the close of business on July 18, 2016 and paid by the Company on July 29, 2016 , the number of shares subject to all outstanding RSUs as of the dividend payable date was equitably and proportionately adjusted to preserve the intrinsic value of the outstanding awards in accordance with the original terms of the awards. The impact of the dividend adjustment to outstanding RSUs as of the dividend payable date has increased the non-vested RSUs outstanding and the expected to vest RSUs as disclosed in the above table. 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 fiscal year ended September 30, 2015. In total, approximately 0.3 million RSU's vested due to change in control provisions. On June 24, 2016 , in connection with the resignation of the Company's former Chief Financial Officer, Mark Weinswig, approximately $0.3 million of stock compensation expense was recorded for acceleration of some and cancellation of other restricted stock units. See Note 9 - Accrued Expenses and Other Current Liabilities . Stock-based compensation The effect of recording stock-based compensation expense was as follows: Stock-based Compensation Expense - by award type For the Fiscal Years Ended September 30, (in thousands) 2016 2015 2014 Employee stock options $ 38 $ 194 $ 135 Restricted stock awards and units 1,683 2,658 1,683 Employee stock purchase plan 223 143 289 401(k) match in common stock — 284 513 Outside director fees in common stock 218 341 367 Total stock-based compensation expense $ 2,162 $ 3,620 $ 2,987 Stock-based Compensation Expense - by expense type For the Fiscal Years Ended September 30, (in thousands) 2016 2015 2014 Cost of revenue $ 345 $ 341 $ 466 Selling, general, and administrative 1,445 2,847 1,912 Research and development 372 432 609 Total stock-based compensation expense $ 2,162 $ 3,620 $ 2,987 For the fiscal year ended September 30, 2016 , total stock-based compensation expense did not agree with the amount listed on our statements of shareholders' equity primarily due to the timing difference between the expense accrued and the issuance of common stock for the payment of outside directors fees and due to reclassification of stock-based compensation expense related to discontinued operations. For the fiscal years ended September 30, 2015 and 2014 , total stock-based compensation expense did not agree with the amount listed on our statements of shareholders' equity primarily due to the timing difference between the expense accrued and the issuance of common stock for the payment of outside directors fees and our 401(k) company match and due to reclassification of stock-based compensation expense related to discontinued operations. The stock based compensation expense above relates to continuing operations. Included within stock based-compensation for selling, general and administrative expense for the fiscal year ended September 30, 2016 was approximately $0.3 million associated with the acceleration of some and cancellation of other restricted stock units associated with the resignation of the Company's former Chief Financial Officer, Mark Weinswig. Stock based-compensation within selling, general and administrative expense was higher for fiscal year ended September 30, 2015 due to stock-based compensation expense associated with the sale of the Photovoltaics and Digital Products Businesses. Included within discontinued operations is $(0.1) million , $1.0 million and $1.5 million of stock based compensation expense for the fiscal years ended September 30, 2016 , 2015 and 2014 , respectively. Capital Stock Our authorized capital stock consists of 50 million shares of common stock, no par value, and 5,882,000 shares of preferred stock, $0.0001 par value. As of September 30, 2016 , we had 33.2 million and 26.2 million shares of common stock issued and outstanding, respectively. There were no shares of preferred stock issued or outstanding as of September 30, 2016 . Warrants As of September 30, 2014 , warrants representing the right to purchase 400,001 shares, of our common stock were outstanding. Since the warrants expired on April 1, 2015 , no warrants were outstanding as of September 30, 2015 . See Note 5 - Fair Value Accounting for additional information related to the valuation of our warrants. 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 fiscal years ended September 30, 2016 and 2015 was approximately $0.4 million and $0.2 million , respectively. For the fiscal years ended September 30, 2015 and 2014 , we contributed approximately $0.3 million and $0.5 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 Fiscal Years Ended September 30, (in thousands, except per share) 2016 2015 2014 Numerator: Income (loss) from continuing operations $ 2,619 $ (2,272 ) $ 4,082 Income from discontinued operations 5,647 65,372 770 Undistributed earnings allocated to common shareholders for basic and diluted net income (loss) per share 8,266 63,100 4,852 Denominator: Denominator for basic net income (loss) per share - weighted average shares outstanding 25,979 30,012 30,453 Dilutive options outstanding, unvested stock units and ESPP 539 — 324 Denominator for diluted net income (loss) per share - adjusted weighted average shares outstanding 26,518 30,012 30,777 Net income (loss) per basic share: Continuing operations $ 0.10 $ (0.08 ) $ 0.13 Discontinued operations 0.22 2.18 0.03 Net income per basic share $ 0.32 $ 2.10 $ 0.16 Net income (loss) per diluted share: Continuing operations $ 0.10 $ (0.08 ) $ 0.13 Discontinued operations 0.21 2.18 0.03 Net income per diluted share $ 0.31 $ 2.10 $ 0.16 Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation 508 1,391 1,936 Average market price of common stock $ 5.88 $ 5.81 $ 4.69 For diluted income (loss) per share, the denominator includes all outstanding common shares and all potential dilutive common shares to be issued. For the fiscal years ended September 30, 2016 , 2015 and 2014 , we excluded 0.5 million , 1.4 million and 1.9 million , respectively, of weighted average outstanding stock options, restricted stock awards, restricted stock units and warrants from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive. 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 . Per the amended ESPP, the total number of shares of common stock on which options may be granted under the ESPP are 3,250,000 shares. With the special dividend paid in July 2016, the total number of shares of common stock on which options may be granted under the ESPP were increased by 265,574 shares to a total of 3,515,574 shares. We issue new shares of common stock to satisfy the issuance of shares under this stock-based compensation plan. Common stock issued under the ESPP during the fiscal years ended September 30, 2016 , 2015 and 2014 totaled 193,000 , 121,000 and 341,000 shares, respectively. As of September 30, 2016 , the total amount of common stock issued under the ESPP totaled 2,470,896 shares and the total shares remaining available for issuance under the ESPP as of September 30, 2016 totaled 1,044,678 . Officer and Director Share Purchase Plan On January 21, 2011, the Compensation Committee of the Board approved an Officer and Director Share Purchase Plan, or ODPP, which allows executive officers and directors to purchase shares of our common stock at fair market value in lieu of salary or, in the case of directors, director fees. Eligible individuals may voluntarily participate in the ODPP by authorizing payroll deductions or, in the case of directors, deductions from director fees for the purpose of purchasing common stock. Elections to participate in the ODPP may only be made during open trading windows under our insider trading policy when the participant does not otherwise possess material non-public information concerning the Company. The Board of Directors has authorized 125,000 shares to be made available for purchase by officers and directors under the ODPP. Common stock issued under the ODPP during the fiscal years ended September 30, 2016 , 2015 and 2014 totaled 0 , 0 and 1,600 shares, respectively. Future Issuances As of September 30, 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 750,338 Unvested restricted stock units 878,416 Purchases under the employee stock purchase plan 1,044,678 Issuance of stock-based awards under the Equity Plans 926,893 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 28,840 Total reserved 3,717,906 With the dividend of $1.50 per share declared on July 5, 2016 , payable to shareholders of record as of the close of business on July 18, 2016 and paid by the Company on July 29, 2016 , the number of shares subject to outstanding equity awards, the exercise price of outstanding stock options and the overall limit on the number of shares remaining available for future issuance under the 2010 Plan and 2012 Plan were equitably and proportionately adjusted to preserve the intrinsic value of the outstanding awards under the original terms of the plans and to preserve the intended effect of the overall share limits. Accordingly, the impact of the dividend adjustment has increased the share amounts reserved for future issuances as disclosed in the above table. |
Geographical Information
Geographical Information | 12 Months Ended |
Sep. 30, 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 4 - 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 Fiscal Years Ended September 30, (in thousands) 2016 2015 2014 United States $ 66,436 $ 55,736 $ 37,284 Asia 17,401 16,885 8,652 Europe 7,618 8,249 7,746 Other 543 815 1,832 Total revenue $ 91,998 $ 81,685 $ 55,514 Significant Customers : Significant customers are defined as customers representing greater than 10% of our consolidated revenue. Revenue from three of our significant customers represented 61% of our consolidated revenue for the fiscal year ended September 30, 2016 . Revenue from four of our significant customers represented 61% of our consolidated revenue for the fiscal year ended September 30, 2015 . Revenue from three of our significant customers represented 41% of our consolidated revenue for the fiscal year ended September 30, 2014 . Long-lived Assets : Long-lived assets consist of property, plant, and equipment. As of September 30, 2016 and September 30, 2015 , approximately 38% of our long-lived assets were located in the United States. The remaining long-lived assets are primarily located in China. |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Selected Quarterly Financial Information (unaudited) | Selected Quarterly Financial Information (unaudited) The following tables present our unaudited consolidated results of operations for the eight most recently ended quarters. We believe that all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts below to present fairly the selected quarterly information when read in conjunction with the consolidated financial statements and notes included elsewhere in this Annual Report. Our results from operations vary substantially from quarter to quarter. Accordingly, the operating results for a quarter are not necessarily indicative of results for any subsequent quarter or for the full year. We have experienced and expect to continue to experience significant fluctuations in quarterly results. On December 10, 2014 , we sold our Photovoltaics Business to SolAero. On January 2, 2015 , we sold our Digital Products Business to NeoPhotonics. These asset sales are reported as discontinued operations, and therefore are excluded from the continuing operations presented below. EMCORE CORPORATION Quarterly Consolidated Statements of Operations For the Fiscal Year Ended September 30, 2016 (in thousands, except (loss) income per share) (unaudited) For the Three Months Ended December 31, March 31, June 30, September 30, 2015 2016 2016 2016 Revenue $ 22,490 $ 21,532 $ 22,376 $ 25,600 Cost of revenue 15,089 14,510 14,964 16,481 Gross profit 7,401 7,022 7,412 9,119 Operating expense (income): Selling, general, and administrative 4,821 4,825 6,125 4,963 Research and development 2,560 2,564 2,405 2,392 Recovery of previously incurred litigation related fees and expenses from arbitration award — — (2,599 ) — Gain on sale of assets — — (41 ) — Total operating expense 7,381 7,389 5,890 7,355 Operating income (loss) 20 (367 ) 1,522 1,764 Other income (expense): Interest (expense) income, net (17 ) 25 32 48 Foreign exchange (loss) gain (135 ) 25 (201 ) (83 ) Total other (expense) income (152 ) 50 (169 ) (35 ) (Loss) income from continuing operations before income tax benefit (expense) (132 ) (317 ) 1,353 1,729 Income tax (expense) benefit (2 ) 155 (175 ) 8 (Loss) income from continuing operations (134 ) (162 ) 1,178 1,737 Income from discontinued operations, net of tax 1,121 4,144 123 259 Net income $ 987 $ 3,982 $ 1,301 $ 1,996 Per share data: Net income (loss) per basic share: Continuing operations $ 0.00 $ (0.01 ) $ 0.05 $ 0.07 Discontinued operations 0.04 0.16 — 0.01 Net income per basic share $ 0.04 $ 0.15 $ 0.05 $ 0.08 Net income (loss) per diluted share: Continuing operations $ 0.00 $ (0.01 ) $ 0.05 $ 0.06 Discontinued operations 0.04 0.16 — 0.01 Net income per diluted share $ 0.04 $ 0.15 $ 0.05 $ 0.07 Weighted-average number of basic shares outstanding 25,697 25,942 26,103 26,177 Weighted-average number of diluted shares outstanding 25,697 25,942 26,269 26,674 EMCORE CORPORATION Quarterly Consolidated Statements of Operations For the Fiscal Year Ended September 30, 2015 (in thousands, except (loss) income per share) (unaudited) For the Three Months Ended December 31, March 31, June 30, September 30, 2014 2015 2015 2015 Revenue $ 18,416 $ 19,057 $ 21,194 $ 23,018 Cost of revenue 13,237 12,678 13,511 13,568 Gross profit 5,179 6,379 7,683 9,450 Operating expense (income): Selling, general, and administrative 8,627 5,954 4,543 5,587 Research and development 2,174 2,022 2,274 2,649 Gain from change in estimate on ARO obligation (845 ) — — — Loss on sale of assets 228 — — — Total operating expense 10,184 7,976 6,817 8,236 Operating loss (5,005 ) (1,597 ) 866 1,214 Other income (expense): Interest expense, net (130 ) 165 4 36 Foreign exchange gain (loss) 57 (6 ) 50 (239 ) Change in fair value of financial instruments 36 86 — — Total other income (expense) (37 ) 245 54 (203 ) Loss from continuing operations before income tax benefit (expense) (5,042 ) (1,352 ) 920 1,011 Income tax benefit (expense) 1,912 396 (456 ) 339 (Loss) income from continuing operations (3,130 ) (956 ) 464 1,350 Income from discontinued operations, net of tax $ 59,258 $ 4,008 $ 1,976 $ 130 Net income $ 56,128 $ 3,052 $ 2,440 $ 1,480 Per share data: Net (loss) income per basic share: Continuing operations $ (0.10 ) $ (0.03 ) $ 0.02 $ 0.05 Discontinued operations 1.90 0.13 0.06 0.01 Net (loss) income per basic share $ 1.80 $ 0.10 $ 0.08 $ 0.06 Net (loss) income per diluted share: Continuing operations $ (0.10 ) $ (0.03 ) $ 0.02 $ 0.05 Discontinued operations 1.90 0.13 0.06 0.01 Net (loss) income per diluted share $ 1.80 $ 0.10 $ 0.08 $ 0.06 Weighted-average number of basic shares outstanding 31,217 32,077 31,203 25,615 Weighted-average number of diluted shares outstanding 31,217 32,077 31,432 25,896 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation : Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the assets, liabilities, shareholders' equity, and operating results of the Company and its wholly owned subsidiaries. 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. |
Prior Period Reclassifications | Reclassification of prior period amounts related to discontinued operations as a result of the sale of the Photovoltaics and Digital Products Businesses have been made to conform to the current period financial statement presentation. |
Use of Estimates | Use of Estimates : The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, as of the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. The accounting estimates that require our most significant, difficult, and/or subjective judgments include: • the valuation of inventory, warrants and stock-based compensation; • the useful lives of assets and assessment of recovery of long-lived assets; • asset retirement obligations and contingencies, including litigation and indemnification-related; • the allowance for doubtful accounts and warranty accruals; and, • the valuation allowance for deferred tax assets. We develop estimates based on historical experience and on various assumptions about the future that are believed to be reasonable based on the best information available to us. Our reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. |
Concentration of Credit Risk | Concentration of Credit Risk : Financial instruments that may subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Our cash and cash equivalents are held in safekeeping primarily with Wells Fargo. When necessary, we perform credit evaluations on our customers' financial condition and occasionally we request deposits in advance of shipping product to our customers. These financial evaluations require significant judgment and are based on a variety of factors including, but not limited to, current economic trends, historical payment patterns, bad debt write-off experience, and financial review of the particular customer. |
Cash and Cash Equivalents | Cash and Cash Equivalents : Cash and cash equivalents consists primarily of bank deposits and highly liquid short-term investments with a maturity of three months or less at the time of purchase. 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 : Restricted cash represents recently deposited cash that is temporarily restricted by our bank in accordance with the terms of the outstanding credit facility. Restricted cash represents temporarily restricted deposits held as compensating balances against short-term borrowing arrangements. |
Accounts Receivable | Accounts Receivable : We regularly evaluate the collectability of our accounts receivable and maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to meet their financial obligations to us. The allowance is based on the age of receivables and a specific identification of receivables considered at risk of collection. We classify charges associated with the allowance for doubtful accounts as selling, general, and administrative expense. |
Inventory | Inventory : Inventory is stated at the lower of cost or market, with cost being determined using the standard cost method that includes material, labor, and manufacturing overhead costs, which approximates weighted average cost. We write-down inventory once it has been determined that conditions exist that may not allow the inventory to be sold for its intended purpose or the inventory is determined to be excess or obsolete based on our forecasted future sales. The charge related to inventory write-downs is recorded as a cost of revenue. The majority of the inventory write-downs are related to inventory whose carrying value is in excess of net realizable value and on excess raw material components resulting from finished product obsolescence. We do not track the selling price of individual raw material components that have been previously written down or written off, since such raw material components usually are only a portion of the finished products and related sales price, and the timing of the consumption of impaired inventory and the sale of the related finished goods is relatively short. We evaluate inventory levels at least quarterly against sales forecasts on a significant part-by-part basis, in addition to determining its overall inventory risk. We have incurred, and may in the future incur charges to write-down our inventory. |
Property, Plant and Equipment | Property, Plant, and Equipment : Our property, plant, and equipment are recorded at cost. Plant and equipment are depreciated on a straight-line basis over the following estimated useful lives of the assets: Estimated Useful Life Equipment — three to ten years Furniture and fixtures — five years Computer hardware and software — five to seven years Leasehold improvements — three to six years Leasehold improvements are amortized over the lesser of the asset life or the lease term. Expenditures for repairs and maintenance are charged to expense as incurred. The costs for major renewals and improvements are capitalized and depreciated over their estimated useful lives of the related asset. The cost and related accumulated depreciation of the assets are removed from the accounts upon disposition and any resulting gain or loss is reflected in the consolidated statement of operations and comprehensive income. |
Valuation of Long-lived Assets | Valuation of Long-lived Assets : Long-lived assets consist primarily of property, plant, and equipment, net. Since our long-lived assets are subject to amortization, we review these assets for impairment in accordance with the provisions of Accounting Standards Codification ("ASC") 360, Property, Plant, and Equipment. We review long-lived assets for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. Our impairment testing of long-lived assets consists of determining whether the carrying amount of the long-lived asset (asset group) is recoverable, in other words, whether the sum of the future undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group) exceeds its carrying amount. The determination of the existence of impairment involves judgments that are subjective in nature and may require the use of estimates in forecasting future results and cash flows related to an asset or group of assets. In making this determination, we use certain assumptions, including estimates of future cash flows expected to be generated by these assets, which are based on additional assumptions such as asset utilization, the length of service that assets will be used in our operations, and estimated salvage values. |
Asset Retirement and Environmental Obligations | Asset Retirement and Environmental Obligations : Pursuant to ASC 410, Asset Retirement and Environmental Obligations , an asset retirement obligation (“ARO” or “AROs”) is recorded when there is a legal obligation associated with the retirement of a tangible long-lived asset and the fair value of the liability can reasonably be estimated. Upon initial recognition of an asset retirement obligation, a company increases the carrying amount of the long-lived asset by the same amount as the liability. Over time, the liabilities are accreted for the change in their present value through charges to operations costs. The initial capitalized costs are depleted over the useful lives of the related assets through charges to depreciation, and/or amortization. If the fair value of the estimated ARO changes, an adjustment is recorded to both the ARO and the asset retirement cost. Revisions in estimated liabilities can result from revisions of estimated inflation rates, escalating retirement costs, and changes in the estimated timing of settling ARO liabilities. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments : We determine the fair value of our financial instruments in accordance with ASC 820, Fair Value Measurements and Disclosures. 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. |
Revenue Recognition | Revenue Recognition : Revenue is recognized upon shipment, provided persuasive evidence of a contract exists, the price is fixed, the product meets our customer's specifications, title and ownership have transferred to the customer, and there is reasonable assurance of collection of the sales proceeds. The majority of our products have shipping terms that are free on board or free carrier alongside (FCA) shipping point, which means that we fulfill our delivery obligation when the goods are handed over to the freight carrier at our shipping dock. This means the customer bears all costs and risks of loss or damage to the goods from that point. In certain cases, we pay for the cost of shipping and insurance to the customer's designated location but we invoice those costs to the customer. Under this arrangement, revenue is recognized under FCA shipping point terms. We account for shipping and related transportation costs by recording the charges that are invoiced to customers as revenue, with the corresponding cost recorded as cost of revenue. In those instances where inventory is maintained at a consigned location, revenue is recognized only when our customer pulls product for use and after title and ownership has transferred to the customer. Any warranty cost and remaining obligations that are inconsequential or perfunctory are accrued when the corresponding revenue is recognized. Distributors: We use a number of distributors around the world and recognize revenue upon shipment of product to these distributors. Title and risk of loss pass to the distributors upon shipment, and our distributors are contractually obligated to pay us on standard commercial terms, just like direct customers. We do not sell to our distributors on consignment and, except in the event of product discontinuance, do not give distributors a right of return. Contract Manufacturers: Prior to certain customers accepting product that is manufactured at one of our contract manufacturers, these customers require that they first qualify the product and manufacturing processes at our contract manufacturer. The customers' qualification process determines whether the product manufactured at our contract manufacturer achieves their quality, performance, and reliability standards. After a customer completes the initial qualification process, we receive approval to ship qualified product to that customer. As part of the manufacturing process at our contract manufacturers, the finished product is tested prior to shipment to the customer using the same criteria that our customer uses to test product it receives. Revenue is recognized upon shipment of customer-qualified product, provided persuasive evidence of a contract exists, the price is fixed, the product meets our customer's specifications, title and ownership have transferred to the customer, and there is reasonable assurance of collection of the sales proceeds. |
Product Warranty Reserves | Product Warranty Reserves : We provide our customers with limited rights of return for non-conforming shipments and warranty claims for certain products. Pursuant to ASC 450, Contingencies, we make estimates of product warranty expense using historical experience rates as a percentage of revenue and accrue estimated warranty expense as a cost of revenue. We estimate the costs of our warranty obligations based on historical experience of known product failure rates and anticipated rates of warranty claims, use of materials to repair or replace defective products, and service delivery costs incurred in correcting product issues. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. Should our actual experience relative to these factors differ from our estimates, we may be required to record additional warranty reserves. Alternatively, if we provide more reserves than needed, we may reverse a portion of such provisions in future periods. |
Litigation Contingencies | Litigation Contingencies : We are subject to various legal proceedings, claims, and litigation, either asserted or unasserted that arise in the ordinary course of business. 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. |
Research and Development | Research and Development : Research and development costs are charged as an expense when incurred. |
Stock-Based Compensation | Stock-Based Compensation : Stock-based compensation expense is measured at the stock option grant date, based on the fair value of the award, and is recorded to cost of revenue, sales, general, and administrative, and research and development expense based on an employee's responsibility and function over the requisite service period. We use the Black-Scholes option-pricing model and the straight-line attribution approach to determine the fair value of stock-based awards in accordance with ASC 718, Compensation. This option-pricing model requires the input of highly subjective assumptions, including the option's expected life, the price volatility and risk-free interest rate of the underlying stock, and expected forfeitures. |
Foreign Exchange | Foreign Exchange : We recognize gains and losses due to the effect of exchange rate changes on foreign currency primarily due to our operations in China. The assets and liabilities of our foreign operations are translated from their respective functional currencies into U.S. dollars at the rates in effect at the consolidated balance sheet dates, and the revenue and expense amounts are translated at the average rate during the applicable periods reflected on the consolidated statements of operations and comprehensive income. Foreign currency translation adjustments are recorded as other comprehensive income. Gains and losses from foreign currency transactions denominated in currencies other than the U.S. dollar, both realized and unrealized, are recorded as foreign exchange (loss) gain on our consolidated statements of operations and comprehensive income. |
Income Taxes | Income Taxes : In accordance with ASC 740, Income Taxes, deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. We record valuation allowances against all deferred tax assets for amounts which are not considered more likely to be realized. |
Comprehensive Income | Comprehensive Income : ASC 220, Comprehensive Income , establishes standards for reporting and display of comprehensive income and its components in financial statements. It requires that all items that are required to be recognized under accounting standards as components of comprehensive income be reported in the financial statement that is displayed with the same prominence as other financial statements. Our comprehensive income consists of both net income and foreign currency translation adjustments and it is presented in the accompanying consolidated statements of operations and comprehensive income. |
Income (Loss) Per Share | Income (Loss) Per Share : We are required, in periods in which we have net income, to calculate basic and diluted income per share using the two-class method. The two-class method is required because our unvested restricted stock awards are considered participating securities as these securities have the right to receive dividends or dividend equivalents should we declare dividends on our common stock. Under the two-class method, during periods of net income, net income is first reduced for distributions declared on all classes of securities to arrive at undistributed earnings. The undistributed earnings are then allocated on a pro-rata basis between the common shareholders and participating securities holders. The weighted-average number of common shares and participating securities outstanding during the period is then used to calculate basic and diluted income per share. In periods in which we have a net loss, basic loss per share is calculated by dividing the loss attributable to common shareholders by the weighted-average number of common shares outstanding during the period. |
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 Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 consolidated statement of operations and comprehensive income. 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 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 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 Consolidated Financial Statements. • In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) : Classification of Certain Cash Receipts and Cash Payments , which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. This guidance is effective for fiscal years beginning after December 15, 2017. The new standard will be effective for our fiscal year beginning October 1, 2018 and earlier adoption is permitted. We are currently evaluating the impact of this accounting standard update on our 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, and early adoption is permitted. The Company early adopted the new standard in fiscal year 2016 and the accounting standard update did not have an impact on our 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 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 Consolidated Financial Statements. |
Receivables | The allowance for doubtful accounts is based on the age of receivables and a specific identification of receivables considered at risk of collection. |
Costs Associated with Exit or Disposal Activities or Restructuring | 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 Obligation : We have known conditional AROs, 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 Costs | 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. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Useful Lives of Property, Plant and Equipment | Plant and equipment are depreciated on a straight-line basis over the following estimated useful lives of the assets: Estimated Useful Life Equipment — three to ten years Furniture and fixtures — five years Computer hardware and software — five to seven years Leasehold improvements — three to six years Leasehold improvements are amortized over the lesser of the asset life or the lease term. Expenditures for repairs and maintenance are charged to expense as incurred. The costs for major renewals and improvements are capitalized and depreciated over their estimated useful lives of the related asset. The cost and related accumulated depreciation of the assets are removed from the accounts upon disposition and any resulting gain or loss is reflected in the consolidated statement of operations and comprehensive income. The components of property, plant, and equipment, net consisted of the following: As of As of (in thousands) September 30, September 30, 2015 Equipment $ 28,247 $ 24,913 Furniture and fixtures 1,109 1,109 Computer hardware and software 2,860 2,177 Leasehold improvements 1,896 1,480 Construction in progress 1,779 875 Property, plant, and equipment, gross 35,891 30,554 Accumulated depreciation (23,678 ) (21,629 ) Property, plant, and equipment, net $ 12,213 $ 8,925 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Sep. 30, 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 Fiscal Years Ended September 30, (in thousands) 2016 2015 2014 Revenue $ — $ 12,614 $ 73,226 Cost of revenue (159 ) 8,245 52,317 Gross profit 159 4,369 20,909 Operating (income) expense (868 ) 2,240 6,654 Other income — 779 17 Gain on sale of discontinued operations — 86,958 — Income from discontinued operations before income tax benefit (expense) 1,027 89,866 14,272 Income tax benefit (expense) 20 (28,700 ) (5,412 ) Income from discontinued operations, net of tax $ 1,047 $ 61,166 $ 8,860 |
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 Fiscal Years Ended September 30, (in thousands) 2016 2015 2014 Revenue $ — $ 11,944 $ 46,038 Cost of revenue (500 ) 9,107 46,387 Gross profit (loss) 500 2,837 (349 ) Operating (income) expense (292 ) 2,800 12,683 Recognition of previously deferred gain on sale of assets 3,804 — — Gain on sale of discontinued operations — 1,994 — Income (loss) from discontinued operations before income tax benefit 4,596 2,031 (13,032 ) Income tax benefit 4 2,175 4,942 Income (loss) from discontinued operations, net of tax $ 4,600 $ 4,206 $ (8,090 ) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table summarizes changes in the allowance for doubtful accounts for the fiscal years ended September 30, 2016 , 2015 and 2014 . Allowance for Doubtful Accounts (in thousands) For the Fiscal Years Ended September 30, 2016 2015 2014 Balance at beginning of period $ 462 $ 116 $ 22 Provision adjustment - expense, net of recoveries 23 556 54 Write-offs and other adjustments - additions (deductions) to receivable balances (449 ) (210 ) 40 Balance at end of period $ 36 $ 462 $ 116 The components of accounts receivable consisted of the following: As of As of (in thousands) September 30, September 30, 2015 Accounts receivable, gross $ 18,468 $ 17,781 Allowance for doubtful accounts (36 ) (462 ) Accounts receivable, net $ 18,432 $ 17,319 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventory consisted of the following: As of As of (in thousands) September 30, September 30, 2015 Raw materials $ 16,095 $ 9,261 Work in-process 5,687 3,207 Finished goods 5,899 4,662 Inventory balance at end of period $ 27,681 $ 17,130 Current portion $ 24,150 $ 17,130 Non-Current portion 3,531 — Inventory balance at end of period $ 27,681 $ 17,130 |
Property, Plant, and Equipmen27
Property, Plant, and Equipment, net (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Plant and equipment are depreciated on a straight-line basis over the following estimated useful lives of the assets: Estimated Useful Life Equipment — three to ten years Furniture and fixtures — five years Computer hardware and software — five to seven years Leasehold improvements — three to six years Leasehold improvements are amortized over the lesser of the asset life or the lease term. Expenditures for repairs and maintenance are charged to expense as incurred. The costs for major renewals and improvements are capitalized and depreciated over their estimated useful lives of the related asset. The cost and related accumulated depreciation of the assets are removed from the accounts upon disposition and any resulting gain or loss is reflected in the consolidated statement of operations and comprehensive income. The components of property, plant, and equipment, net consisted of the following: As of As of (in thousands) September 30, September 30, 2015 Equipment $ 28,247 $ 24,913 Furniture and fixtures 1,109 1,109 Computer hardware and software 2,860 2,177 Leasehold improvements 1,896 1,480 Construction in progress 1,779 875 Property, plant, and equipment, gross 35,891 30,554 Accumulated depreciation (23,678 ) (21,629 ) Property, plant, and equipment, net $ 12,213 $ 8,925 |
Accrued Expenses and Other Cu28
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Sep. 30, 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) September 30, September 30, 2015 Compensation $ 3,628 $ 3,036 Warranty 871 1,664 Termination fee — 2,775 Professional fees 761 1,147 Customer deposits 38 133 Deferred revenue — 65 Self insurance 25 606 Income and other taxes 944 1,038 Severance and restructuring accruals 642 1,448 Other 775 1,190 Accrued expenses and other current liabilities $ 7,684 $ 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, 2014 $ 1,317 $ — $ 1,317 Expense - charged to accrual 1,216 737 1,953 Payments and accrual adjustments (1,423 ) (399 ) (1,822 ) Balance as of September 30, 2015 $ 1,110 $ 338 $ 1,448 Expense - charged to accrual 728 — 728 Payments and accrual adjustments (1,196 ) (338 ) (1,534 ) Balance as of September 30, 2016 $ 642 $ — $ 642 |
Schedule of Product Warranty Accruals | The following table summarizes the changes in our product warranty accrual accounts: Product Warranty Accruals For the Fiscal Years Ended September 30, (in thousands) 2016 2015 2014 Balance at beginning of period $ 1,664 $ 2,816 $ 3,881 Provision for product warranty - expense 376 838 1,308 Adjustments and utilization of warranty accrual (1,169 ) (1,990 ) (2,373 ) Balance at end of period $ 871 $ 1,664 $ 2,816 |
Income and other Taxes (Tables)
Income and other Taxes (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
(Loss) Income from Continuing Operations before Income Taxes | The Company's income (loss) from continuing operations before income taxes consisted of the following: Income (loss) from continuing operations before income taxes For the Fiscal Years Ended September 30, (in thousands) 2016 2015 2014 Domestic $ 1,735 $ (5,713 ) $ (19,792 ) Foreign 898 1,250 (676 ) Income (loss) from continuing operations before income taxes $ 2,633 $ (4,463 ) $ (20,468 ) |
Schedule of Components of Income Tax Expense (Benefit) | The Company's income tax (benefit) expense consisted of the following: Income tax expense (benefit) For the Fiscal Years Ended September 30, (in thousands) 2016 2015 2014 Federal: Current $ — $ — $ — Deferred — (1,835 ) (21,285 ) — (1,835 ) (21,285 ) State: Current (117 ) — — Deferred — (356 ) (2,454 ) (117 ) (356 ) (2,454 ) Foreign: Current 131 — — Deferred — — (811 ) 131 — (811 ) Total income tax expense (benefit) $ 14 $ (2,191 ) $ (24,550 ) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the provision for income taxes, with the amount computed by applying the statutory U.S. federal and state income tax rates to continuing operations income before provision for income taxes is as follows: Provision for Income Taxes For the Fiscal Years Ended September 30, (in thousands) 2016 2015 2014 Income tax benefit computed at U.S. federal statutory rate $ 896 $ (1,518 ) $ (6,959 ) State tax expense benefit, net of U.S. federal effect (41 ) (356 ) (776 ) Foreign tax rate differential (94 ) (269 ) 1,041 Effect due to change in tax rate 626 — — Release of valuation allowance-domestic — — (17,856 ) Other (57 ) 108 — State net operating loss carryforward adjustment 685 — — Change in valuation allowance (2,001 ) (156 ) — Income tax expense (benefit) $ 14 $ (2,191 ) $ (24,550 ) Effective tax rate 0.5 % 49.1 % 119.9 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets are as follows: Deferred Tax Assets As of September 30, 2016 As of September 30, 2015 (in thousands) Deferred tax assets: Federal net operating loss carryforwards $ 147,449 $ 147,704 Foreign net operating loss carryforwards 51 66 Income tax credit carryforwards 3,062 3,033 Inventory reserves 2,614 2,283 Accounts receivable reserves 14 149 Accrued warranty reserve 328 587 State net operating loss carryforwards 7,009 9,527 Stock compensation 3,334 2,837 Deferred compensation 896 1,080 Fixed assets and intangibles 124 1,646 Other 728 1,388 Total deferred tax assets 165,609 170,300 Valuation allowance (165,609 ) (170,300 ) Net deferred tax assets $ — $ — |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized gross tax benefits is as follows: Unrecognized Gross Tax Benefit (in thousands) Balance as of September 30, 2014 $ 620 Adjustments based on tax positions related to the current year — Adjustments based on tax positions of prior years (207 ) Balance as of September 30, 2015 413 Adjustments based on tax positions related to the current year — Adjustments based on tax positions of prior years (125 ) Balance as of September 30, 2016 $ 288 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Asset Retirement Obligations Activity | The following table summarizes ARO activity: Asset Retirement Obligations September 30, (in thousands) 2016 Balance at September 30, 2015 $ 1,774 Accretion expense 66 Additions in current year 48 Payments and revision in estimated cash flows (270 ) Balance at September 30, 2016 $ 1,618 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Schedule of Stock Options Activity | The following table summarizes stock option activity under the Equity Plans for the fiscal year ended September 30, 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 27,900 $6.01 Share adjustment for special dividend 185,726 $17.09 Exercised (45,340 ) $4.97 $ 87 Forfeited (9,353 ) $5.49 Expired (105,054 ) $27.72 Outstanding as of September 30, 2016 750,338 $16.84 2.31 $ 479 Exercisable as of September 30, 2016 680,859 $17.06 1.64 $ 406 Vested and expected to vest as of September 30, 2016 736,937 $18.08 2.19 $ 466 (*) 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 fiscal years ended September 30, 2015 and 2014, the intrinsic value of options exercised was $0.3 million and $0.1 million , respectively. |
Schedule of Valuation Assumptions | The fair value of each stock option grant, excluding the adjustment for the special dividend, 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 Fiscal Years Ended September 30, 2016 2015 2014 Black-Scholes weighted average assumptions: Expected dividend rate — % — % — % Expected stock price volatility rate 60.9 % 66.1 % 92.8 % Risk-free interest rate 1.6 % 1.8 % 1.9 % Expected term (in years) 6.0 6.0 6.0 Weighted average grant date fair value per share of stock options granted: $ 3.40 $ 3.73 $ 3.53 |
Schedule of Restricted Stock Activity | The following table summarizes the activity related to RSUs for the fiscal year ended September 30, 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 449,250 $5.53 Share adjustment for special dividend 200,061 $0.00 Vested (283,553 ) $5.17 Forfeited (57,573 ) $5.04 Non-vested as of September 30, 2016 878,416 $4.25 |
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 Fiscal Years Ended September 30, (in thousands) 2016 2015 2014 Employee stock options $ 38 $ 194 $ 135 Restricted stock awards and units 1,683 2,658 1,683 Employee stock purchase plan 223 143 289 401(k) match in common stock — 284 513 Outside director fees in common stock 218 341 367 Total stock-based compensation expense $ 2,162 $ 3,620 $ 2,987 |
Schedule Stock-based Compensation Expense - By Expense Type | Stock-based Compensation Expense - by expense type For the Fiscal Years Ended September 30, (in thousands) 2016 2015 2014 Cost of revenue $ 345 $ 341 $ 466 Selling, general, and administrative 1,445 2,847 1,912 Research and development 372 432 609 Total stock-based compensation expense $ 2,162 $ 3,620 $ 2,987 |
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 Fiscal Years Ended September 30, (in thousands, except per share) 2016 2015 2014 Numerator: Income (loss) from continuing operations $ 2,619 $ (2,272 ) $ 4,082 Income from discontinued operations 5,647 65,372 770 Undistributed earnings allocated to common shareholders for basic and diluted net income (loss) per share 8,266 63,100 4,852 Denominator: Denominator for basic net income (loss) per share - weighted average shares outstanding 25,979 30,012 30,453 Dilutive options outstanding, unvested stock units and ESPP 539 — 324 Denominator for diluted net income (loss) per share - adjusted weighted average shares outstanding 26,518 30,012 30,777 Net income (loss) per basic share: Continuing operations $ 0.10 $ (0.08 ) $ 0.13 Discontinued operations 0.22 2.18 0.03 Net income per basic share $ 0.32 $ 2.10 $ 0.16 Net income (loss) per diluted share: Continuing operations $ 0.10 $ (0.08 ) $ 0.13 Discontinued operations 0.21 2.18 0.03 Net income per diluted share $ 0.31 $ 2.10 $ 0.16 Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation 508 1,391 1,936 Average market price of common stock $ 5.88 $ 5.81 $ 4.69 |
Schedule of Common Stock Reserved for Future Issuances | As of September 30, 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 750,338 Unvested restricted stock units 878,416 Purchases under the employee stock purchase plan 1,044,678 Issuance of stock-based awards under the Equity Plans 926,893 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 28,840 Total reserved 3,717,906 |
Geographical Information (Table
Geographical Information (Tables) | 12 Months Ended |
Sep. 30, 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 Fiscal Years Ended September 30, (in thousands) 2016 2015 2014 United States $ 66,436 $ 55,736 $ 37,284 Asia 17,401 16,885 8,652 Europe 7,618 8,249 7,746 Other 543 815 1,832 Total revenue $ 91,998 $ 81,685 $ 55,514 |
Selected Quarterly Financial 33
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Quarterly Financial Information | EMCORE CORPORATION Quarterly Consolidated Statements of Operations For the Fiscal Year Ended September 30, 2016 (in thousands, except (loss) income per share) (unaudited) For the Three Months Ended December 31, March 31, June 30, September 30, 2015 2016 2016 2016 Revenue $ 22,490 $ 21,532 $ 22,376 $ 25,600 Cost of revenue 15,089 14,510 14,964 16,481 Gross profit 7,401 7,022 7,412 9,119 Operating expense (income): Selling, general, and administrative 4,821 4,825 6,125 4,963 Research and development 2,560 2,564 2,405 2,392 Recovery of previously incurred litigation related fees and expenses from arbitration award — — (2,599 ) — Gain on sale of assets — — (41 ) — Total operating expense 7,381 7,389 5,890 7,355 Operating income (loss) 20 (367 ) 1,522 1,764 Other income (expense): Interest (expense) income, net (17 ) 25 32 48 Foreign exchange (loss) gain (135 ) 25 (201 ) (83 ) Total other (expense) income (152 ) 50 (169 ) (35 ) (Loss) income from continuing operations before income tax benefit (expense) (132 ) (317 ) 1,353 1,729 Income tax (expense) benefit (2 ) 155 (175 ) 8 (Loss) income from continuing operations (134 ) (162 ) 1,178 1,737 Income from discontinued operations, net of tax 1,121 4,144 123 259 Net income $ 987 $ 3,982 $ 1,301 $ 1,996 Per share data: Net income (loss) per basic share: Continuing operations $ 0.00 $ (0.01 ) $ 0.05 $ 0.07 Discontinued operations 0.04 0.16 — 0.01 Net income per basic share $ 0.04 $ 0.15 $ 0.05 $ 0.08 Net income (loss) per diluted share: Continuing operations $ 0.00 $ (0.01 ) $ 0.05 $ 0.06 Discontinued operations 0.04 0.16 — 0.01 Net income per diluted share $ 0.04 $ 0.15 $ 0.05 $ 0.07 Weighted-average number of basic shares outstanding 25,697 25,942 26,103 26,177 Weighted-average number of diluted shares outstanding 25,697 25,942 26,269 26,674 EMCORE CORPORATION Quarterly Consolidated Statements of Operations For the Fiscal Year Ended September 30, 2015 (in thousands, except (loss) income per share) (unaudited) For the Three Months Ended December 31, March 31, June 30, September 30, 2014 2015 2015 2015 Revenue $ 18,416 $ 19,057 $ 21,194 $ 23,018 Cost of revenue 13,237 12,678 13,511 13,568 Gross profit 5,179 6,379 7,683 9,450 Operating expense (income): Selling, general, and administrative 8,627 5,954 4,543 5,587 Research and development 2,174 2,022 2,274 2,649 Gain from change in estimate on ARO obligation (845 ) — — — Loss on sale of assets 228 — — — Total operating expense 10,184 7,976 6,817 8,236 Operating loss (5,005 ) (1,597 ) 866 1,214 Other income (expense): Interest expense, net (130 ) 165 4 36 Foreign exchange gain (loss) 57 (6 ) 50 (239 ) Change in fair value of financial instruments 36 86 — — Total other income (expense) (37 ) 245 54 (203 ) Loss from continuing operations before income tax benefit (expense) (5,042 ) (1,352 ) 920 1,011 Income tax benefit (expense) 1,912 396 (456 ) 339 (Loss) income from continuing operations (3,130 ) (956 ) 464 1,350 Income from discontinued operations, net of tax $ 59,258 $ 4,008 $ 1,976 $ 130 Net income $ 56,128 $ 3,052 $ 2,440 $ 1,480 Per share data: Net (loss) income per basic share: Continuing operations $ (0.10 ) $ (0.03 ) $ 0.02 $ 0.05 Discontinued operations 1.90 0.13 0.06 0.01 Net (loss) income per basic share $ 1.80 $ 0.10 $ 0.08 $ 0.06 Net (loss) income per diluted share: Continuing operations $ (0.10 ) $ (0.03 ) $ 0.02 $ 0.05 Discontinued operations 1.90 0.13 0.06 0.01 Net (loss) income per diluted share $ 1.80 $ 0.10 $ 0.08 $ 0.06 Weighted-average number of basic shares outstanding 31,217 32,077 31,203 25,615 Weighted-average number of diluted shares outstanding 31,217 32,077 31,432 25,896 |
Description of Business (Busine
Description of Business (Business Overview) (Details) - segment | Dec. 10, 2014 | Sep. 30, 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 | 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 | |||||
Discontinued Operations, Disposed of by Sale [Member] | 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 | |||||
Working capital adjustment | $ 0.1 | |||||
Discontinued Operations, Disposed of by Sale [Member] | 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 | Jun. 30, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Jul. 05, 2016 | Dec. 10, 2014 | Sep. 30, 2013 |
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 | $ 0 | $ 45,650,000 | $ 0 | ||||||||||||
Repurchase costs | $ 700,000 | |||||||||||||||
Cash and cash equivalents | $ 63,905,000 | $ 111,885,000 | 63,905,000 | 111,885,000 | 20,687,000 | $ 16,104,000 | ||||||||||
Working capital | 93,000,000 | 93,000,000 | ||||||||||||||
Net income | $ 1,996,000 | $ 1,301,000 | $ 3,982,000 | $ 987,000 | $ 1,480,000 | $ 2,440,000 | $ 3,052,000 | $ 56,128,000 | 8,266,000 | $ 63,100,000 | $ 4,852,000 | |||||
Dividends payable (in usd per share) | $ 1.50 | |||||||||||||||
Dividends payable | $ 39,200,000 | |||||||||||||||
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 | |||||||||||||||
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 | |||||||||||||||
Sumitomo Electric Industries, LTD [Member] | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Recovery of fees and costs from SEI | $ 2,600,000 | |||||||||||||||
Settled Litigation [Member] | Sumitomo Electric Industries, LTD [Member] | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Recovery of fees and costs from SEI | $ 2,600,000 | |||||||||||||||
Loss contingency, proceeds | $ 1,900,000 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Property, Plant and Equipment and Intangible Assets) (Details) | 12 Months Ended |
Sep. 30, 2016 | |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 3 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 10 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 5 years |
Computer Hardware and Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 5 years |
Computer Hardware and Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 7 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 3 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 6 years |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Accounting Policies [Abstract] | ||
Asset retirement obligations | $ 1,573 | $ 1,774 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) | Dec. 22, 2015 | Dec. 10, 2014 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Apr. 17, 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] | ||||||||||||
Payments to terminate lease agreement | $ 200,000 | |||||||||||
Gain on lease termination | 310,000 | $ 0 | ||||||||||
Gain on settlement | 0 | 442,000 | $ 0 | |||||||||
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 | |||||||||||
Sumitomo Electric Industries, LTD [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Gain on settlement | 3,400,000 | |||||||||||
Discontinued Operations, Disposed of by Sale [Member] | ||||||||||||
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 | $ 0 | 400,000 | 0 | |||||||||
Payments to terminate lease agreement | $ 200,000 | |||||||||||
Gain on lease termination | 300,000 | |||||||||||
Discontinued Operations, Disposed of by Sale [Member] | 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 | |||||||||||
Gain on sale of business | 2,000,000 | |||||||||||
Asset sale, promissory note, principal amount | $ 15,500,000 | $ 1,500,000 | ||||||||||
Accrued interest on note receivable | $ 200,000 | |||||||||||
Discontinued Operations, Disposed of by Sale [Member] | 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 | |||||||||||
Working capital adjustment | $ 100,000 | |||||||||||
Net assets sold | 60,300,000 | |||||||||||
Transaction costs incurred in sale of business | $ 2,700,000 | |||||||||||
Gain on sale of business | $ 56,800,000 | |||||||||||
Discontinued Operations, Disposed of by Sale [Member] | 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 | |||||||||||
Recognition of deferred gain | 3,400,000 | |||||||||||
Gain on settlement | $ 3,800,000 |
Discontinued Operations (Income
Discontinued Operations (Income Statements) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Photovoltaics Business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenue | $ 73,226 | ||
Cost of revenue | 52,317 | ||
Gross profit | 20,909 | ||
Operating (income) expense | 6,654 | ||
Other income | 17 | ||
Gain on sale of discontinued operations | 0 | ||
Income (loss) from discontinued operations before income tax benefit | 14,272 | ||
Income tax benefit (expense) | (5,412) | ||
Income (loss) from discontinued operations, net of tax | 8,860 | ||
Digital Products Business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenue | 46,038 | ||
Cost of revenue | 46,387 | ||
Gross profit | (349) | ||
Operating (income) expense | 12,683 | ||
Gain on sale of discontinued operations | 0 | ||
Income (loss) from discontinued operations before income tax benefit | (13,032) | ||
Income tax benefit (expense) | 4,942 | ||
Income (loss) from discontinued operations, net of tax | (8,090) | ||
Discontinued Operations, Disposed of by Sale [Member] | Photovoltaics Business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenue | $ 0 | $ 12,614 | |
Cost of revenue | (159) | 8,245 | |
Gross profit | 159 | 4,369 | |
Operating (income) expense | (868) | 2,240 | |
Other income | 0 | 779 | |
Gain on sale of discontinued operations | 0 | 86,958 | |
Income (loss) from discontinued operations before income tax benefit | 1,027 | 89,866 | |
Income tax benefit (expense) | 20 | (28,700) | |
Income (loss) from discontinued operations, net of tax | 1,047 | 61,166 | |
Discontinued Operations, Disposed of by Sale [Member] | Digital Products Business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenue | 0 | 11,944 | |
Cost of revenue | (500) | 9,107 | |
Gross profit | 500 | 2,837 | |
Operating (income) expense | (292) | 2,800 | |
Other income | 3,804 | 0 | $ 0 |
Gain on sale of discontinued operations | 0 | 1,994 | |
Income (loss) from discontinued operations before income tax benefit | 4,596 | 2,031 | |
Income tax benefit (expense) | 4 | 2,175 | |
Income (loss) from discontinued operations, net of tax | $ 4,600 | $ 4,206 |
Accounts Receivable (Schedule o
Accounts Receivable (Schedule of Components of Accounts Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Receivables [Abstract] | ||
Accounts receivable, gross | $ 18,468 | $ 17,781 |
Allowance for doubtful accounts | (36) | (462) |
Accounts receivable, net | $ 18,432 | $ 17,319 |
Accounts Receivable (Allowance
Accounts Receivable (Allowance for Doubtful Accounts Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of period | $ 462 | $ 116 | $ 22 |
Provision adjustment - expense, net of recoveries | 23 | 556 | 54 |
Write-offs and other adjustments - additions (deductions) to receivable balances | (449) | (210) | 40 |
Balance at end of period | $ 36 | $ 462 | $ 116 |
Inventory (Schedule of Componen
Inventory (Schedule of Components of Inventory) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 16,095 | $ 9,261 |
Work in-process | 5,687 | 3,207 |
Finished goods | 5,899 | 4,662 |
Inventory balance at end of period | 27,681 | 17,130 |
Current portion | 24,150 | 17,130 |
Non-Current portion | $ 3,531 | $ 0 |
Property, Plant, and Equipmen44
Property, Plant, and Equipment, net (Schedule of Property, Plant, and Equipment) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 35,891 | $ 30,554 |
Accumulated depreciation | (23,678) | (21,629) |
Property, plant, and equipment, net | 12,213 | 8,925 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 28,247 | 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 | 2,860 | 2,177 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 1,896 | 1,480 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 1,779 | $ 875 |
Property, Plant, and Equipmen45
Property, Plant, and Equipment, net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 2.4 | $ 2.1 | $ 2.5 |
Accrued Expenses and Other Cu46
Accrued Expenses and Other Current Liabilities (Schedule of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jul. 31, 2016 | Sep. 30, 2015 |
Payables and Accruals [Abstract] | |||
Compensation | $ 3,628 | $ 3,036 | |
Warranty | 871 | 1,664 | |
Termination fee | 0 | $ 2,900 | 2,775 |
Professional fees | 761 | 1,147 | |
Customer deposits | 38 | 133 | |
Deferred revenue | 0 | 65 | |
Self insurance | 25 | 606 | |
Income and other taxes | 944 | 1,038 | |
Severance and restructuring accruals | 642 | 1,448 | |
Other | 775 | 1,190 | |
Accrued expenses and other current liabilities | $ 7,684 | $ 13,102 |
Accrued Expenses and Other Cu47
Accrued Expenses and Other Current Liabilities (Termination Fee) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Jul. 31, 2016 | Sep. 30, 2015 | |
Accrued Expenses and Other Current Liabilities [Line Items] | |||
Termination fee | $ 0 | $ 2,900 | $ 2,775 |
Increase in accrued termination fee | 150 | ||
Continuing Operations [Member] | |||
Accrued Expenses and Other Current Liabilities [Line Items] | |||
Increase in accrued termination fee | 72 | ||
Discontinued Operations [Member] | |||
Accrued Expenses and Other Current Liabilities [Line Items] | |||
Increase in accrued termination fee | $ 78 |
Accrued Expenses and Other Cu48
Accrued Expenses and Other Current Liabilities (Income and Other Taxes) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Payables and Accruals [Abstract] | |||||||||||
Income tax expense | $ 8 | $ (175) | $ 155 | $ (2) | $ 339 | $ (456) | $ 396 | $ 1,912 | $ (14) | $ 2,191 | $ 24,550 |
Income tax expense, discontinued operations | $ 24 | (26,500) | $ (500) | ||||||||
Deferred income tax benefit from discontinued operations | $ 24,100 |
Accrued Expenses and Other Cu49
Accrued Expenses and Other Current Liabilities (Severance and Restructuring Accruals) (Narrative) (Details) | Jun. 07, 2016USD ($) | Jun. 02, 2016 | Dec. 10, 2014 | May 31, 2016USD ($)employee | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) |
Severance and restructuring accruals: | ||||||||||
Payments to terminate lease agreement | $ 200,000 | |||||||||
Gain on lease termination | 310,000 | $ 0 | ||||||||
Number of positions eliminated | employee | 30 | |||||||||
Chief Executive Officer [Member] | ||||||||||
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 [Member] | ||||||||||
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 [Member] | ||||||||||
Severance and restructuring accruals: | ||||||||||
Continuation of base salary period | 518 days | |||||||||
Chief Counsel and Secretary [Member] | ||||||||||
Severance and restructuring accruals: | ||||||||||
Continuation of base salary period | 476 days | |||||||||
Chief Financial Officer [Member] | ||||||||||
Severance and restructuring accruals: | ||||||||||
Continuation of base salary period | 448 days | |||||||||
Outplacement services, period | 1 year | |||||||||
Outplacement services, value | $ 15,000 | |||||||||
Estimated charge related to separation agreement | $ 400,000 | |||||||||
Discontinued Operations, Disposed of by Sale [Member] | ||||||||||
Severance and restructuring accruals: | ||||||||||
Payments to terminate lease agreement | $ 200,000 | |||||||||
Gain on lease termination | $ 300,000 | |||||||||
Employee Severance [Member] | ||||||||||
Severance and restructuring accruals: | ||||||||||
Restructuring costs | $ 300,000 |
Accrued Expenses and Other Cu50
Accrued Expenses and Other Current Liabilities (Schedule of Restructuring and Related Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | $ 1,448 | $ 1,317 |
Expense - charged to accrual | 728 | 1,953 |
Payments and accrual adjustments | (1,534) | (1,822) |
Ending Balance | 642 | 1,448 |
Severance-related accruals [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 1,110 | 1,317 |
Expense - charged to accrual | 728 | 1,216 |
Payments and accrual adjustments | (1,196) | (1,423) |
Ending Balance | 642 | 1,110 |
Restructuring-related accruals [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 338 | 0 |
Expense - charged to accrual | 0 | 737 |
Payments and accrual adjustments | (338) | (399) |
Ending Balance | $ 0 | $ 338 |
Accrued Expenses and Other Cu51
Accrued Expenses and Other Current Liabilities (Schedule of Product Warranty Accruals) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance at beginning of period | $ 1,664 | $ 2,816 | $ 3,881 |
Provision for product warranty - expense | 376 | 838 | 1,308 |
Adjustments and utilization of warranty accrual | (1,169) | (1,990) | (2,373) |
Balance at end of period | $ 871 | $ 1,664 | $ 2,816 |
Credit Facilities (Narrative) (
Credit Facilities (Narrative) (Details) | Nov. 10, 2015 | Nov. 30, 2016USD ($) | Sep. 30, 2016USD ($)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 | $ 500,000 | |||
Number of standby letters of credit outstanding | letter_of_credit | 1 | |||
Remaining borrowing capacity | $ 10,900,000 | |||
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 (Schedul
Income and other Taxes (Schedule of Income (Loss) Before Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 1,735 | $ (5,713) | $ (19,792) | ||||||||
Foreign | 898 | 1,250 | (676) | ||||||||
Income (loss) from continuing operations before income tax (expense) benefit | $ 1,729 | $ 1,353 | $ (317) | $ (132) | $ 1,011 | $ 920 | $ (1,352) | $ (5,042) | $ 2,633 | $ (4,463) | $ (20,468) |
Income and other Taxes (Income
Income and other Taxes (Income Tax Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Federal: | |||||||||||
Current | $ 0 | $ 0 | $ 0 | ||||||||
Deferred | 0 | (1,835) | (21,285) | ||||||||
Federal income tax expense (benefit) | 0 | (1,835) | (21,285) | ||||||||
State: | |||||||||||
Current | (117) | 0 | 0 | ||||||||
Deferred | 0 | (356) | (2,454) | ||||||||
State and local income tax expense (benefit) | (117) | (356) | (2,454) | ||||||||
Foreign: | |||||||||||
Current | 131 | 0 | 0 | ||||||||
Deferred | 0 | 0 | (811) | ||||||||
Foreign income tax expense (benefit) | 131 | 0 | (811) | ||||||||
Income tax expense (benefit) | $ (8) | $ 175 | $ (155) | $ 2 | $ (339) | $ 456 | $ (396) | $ (1,912) | $ 14 | $ (2,191) | $ (24,550) |
Income and other Taxes (Provisi
Income and other Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax benefit computed at U.S. federal statutory rate | $ 896 | $ (1,518) | $ (6,959) | ||||||||
State tax expense benefit, net of U.S. federal effect | (41) | (356) | (776) | ||||||||
Foreign tax rate differential | (94) | (269) | 1,041 | ||||||||
Effect due to change in tax rate | 626 | 0 | 0 | ||||||||
Release of valuation allowance-domestic | 0 | 0 | (17,856) | ||||||||
Other | (57) | 108 | 0 | ||||||||
State net operating loss carryforward adjustment | 685 | 0 | 0 | ||||||||
Change in valuation allowance | (2,001) | (156) | 0 | ||||||||
Income tax expense (benefit) | $ (8) | $ 175 | $ (155) | $ 2 | $ (339) | $ 456 | $ (396) | $ (1,912) | $ 14 | $ (2,191) | $ (24,550) |
Effective tax rate | 0.50% | 49.10% | 119.90% |
Income and other Taxes (Deferre
Income and other Taxes (Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Income Tax Disclosure [Abstract] | ||
Federal net operating loss carryforwards | $ 147,449 | $ 147,704 |
Foreign net operating loss carryforwards | 51 | 66 |
Income tax credit carryforwards | 3,062 | 3,033 |
Inventory reserves | 2,614 | 2,283 |
Accrued warranty reserve | 14 | 149 |
Accrued warranty reserve | 328 | 587 |
State net operating loss carryforwards | 7,009 | 9,527 |
Stock compensation | 3,334 | 2,837 |
Deferred compensation | 896 | 1,080 |
Fixed assets and intangibles | 124 | 1,646 |
Other | 728 | 1,388 |
Total deferred tax assets | 165,609 | 170,300 |
Valuation allowance | (165,609) | (170,300) |
Net deferred tax assets | $ 0 | $ 0 |
Income and other Taxes (Narrati
Income and other Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Loss Carryforwards [Line Items] | |||||||||||
Income tax expense | $ 8,000 | $ (175,000) | $ 155,000 | $ (2,000) | $ 339,000 | $ (456,000) | $ 396,000 | $ 1,912,000 | $ (14,000) | $ 2,191,000 | $ 24,550,000 |
Alternative minimum tax | 600,000 | ||||||||||
Deferred income tax benefit from discontinued operations | 24,100,000 | ||||||||||
Income tax (expense) benefit, discontinued operations | $ 24,000 | $ (26,500,000) | $ (500,000) | ||||||||
Effective tax rate | (0.50%) | (49.10%) | (119.90%) | ||||||||
Decrease in unrecognized tax benefits | $ 100,000 | $ 200,000 | |||||||||
Income tax penalties and interest accrued | 300,000 | 300,000 | |||||||||
Operating loss carryforward portion subject limitation | 226,500,000 | 226,500,000 | |||||||||
Operating loss carryforward portion not subject to limitation | 207,200,000 | 207,200,000 | |||||||||
Internal Revenue Service (IRS) [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Operating loss carryforwards | 433,700,000 | 433,700,000 | |||||||||
Foreign Tax Authority [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Operating loss carryforwards | 200,000 | 200,000 | |||||||||
State and Local Jurisdiction [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Operating loss carryforwards | 139,300,000 | 139,300,000 | |||||||||
Continuing Operations [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Decrease in unrecognized tax benefits | 112,800 | 100,000 | |||||||||
Discontinued Operations [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Decrease in unrecognized tax benefits | 12,000 | 100,000 | |||||||||
Income tax credits and adjustments | 400,000 | $ 200,000 | $ 800,000 | ||||||||
Foreign Income and Research And Development Credit [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Tax credit carryforward | $ 3,000,000 | $ 3,000,000 |
Income and other Taxes (Unrecog
Income and other Taxes (Unrecognized Gross Tax Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Unrecognized Gross Tax Benefit | ||
Beginning balance | $ 413 | $ 620 |
Adjustments based on tax positions related to the current year | 0 | 0 |
Adjustments based on tax positions of prior years | (125) | (207) |
Ending balance | $ 288 | $ 413 |
Commitments and Contingencies59
Commitments and Contingencies (Narrative) (Details) | Oct. 01, 2014 | Sep. 23, 2014USD ($) | Jun. 30, 2016USD ($) | May 31, 2016 | Dec. 31, 2015USD ($) | Mar. 31, 2012USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2016USD ($)building | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Nov. 30, 2014building |
Loss Contingencies [Line Items] | |||||||||||||||
Minimum lease payments, 2017 | $ 800,000 | ||||||||||||||
Minimum lease payments, 2018 | 300,000 | ||||||||||||||
Minimum lease payments, 2019 | 300,000 | ||||||||||||||
Minimum lease payments, 2020 | 200,000 | ||||||||||||||
Minimum lease payments, 2021 | 100,000 | ||||||||||||||
Operating leases, rent expense | $ 1,400,000 | $ 1,300,000 | $ 1,700,000 | ||||||||||||
Fair value assumptions, credit adjusted risk-free rate, range minimal amount | 1.20% | ||||||||||||||
Fair value assumptions, credit adjusted risk-free rate, range maximum amount | 4.20% | ||||||||||||||
Accretion expense | $ 66,000 | 100,000 | 200,000 | ||||||||||||
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 | $ 0 | $ 845,000 | 0 | 845,000 | 0 | ||||||||
Asset retirement obligation | $ 1,774,000 | 1,618,000 | 1,774,000 | ||||||||||||
Payments to terminate lease agreement | 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 | $ 442,000 | $ 0 | ||||||||||||
Sumitomo Electric Industries, LTD [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Loss contingency, damages sought | $ 47,500,000 | ||||||||||||||
Recovery of fees and costs from SEI | $ 2,600,000 | ||||||||||||||
Gain on settlement | $ 3,400,000 | ||||||||||||||
Buildings [Member] | Property Subject to Operating Lease [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of leased buildings | building | 6 | ||||||||||||||
Leases retroactively effective | building | 4 | ||||||||||||||
Lease term | 3 years | ||||||||||||||
Operating lease, term extension, option to extend | 3 years | ||||||||||||||
Minimum [Member] | Mirasol Class Action [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Estimate of loss | $ 39,000 | ||||||||||||||
Maximum [Member] | Mirasol Class Action [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Estimate of loss | 2,600,000 | ||||||||||||||
Property in Beijing, China [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Lease term | 5 years | ||||||||||||||
Asset retirement obligation | 48,000 | ||||||||||||||
Discontinued Operations, Disposed of by Sale [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Payments to terminate lease agreement | $ 200,000 | ||||||||||||||
Discontinued Operations, Disposed of by Sale [Member] | Sumitomo Electric Industries, LTD [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Gain on settlement | 3,800,000 | ||||||||||||||
Write off of loss accrual | 400,000 | ||||||||||||||
Settled Litigation [Member] | Sumitomo Electric Industries, LTD [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Loss contingency, proceeds | $ 1,900,000 | ||||||||||||||
Recovery of fees and costs from SEI | $ 2,600,000 |
Commitments and Contingencies60
Commitments and Contingencies (Asset Retirement Obligation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Asset Retirement Obligations | |||
Asset retirement obligation, beginning balance | $ 1,774 | ||
Accretion expense | 66 | $ 100 | $ 200 |
Additions in current year | 48 | ||
Revision in estimated cash flows | (270) | ||
Asset retirement obligation, ending balance | $ 1,618 | $ 1,774 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) | Oct. 18, 2016USD ($)shares | Jun. 24, 2016USD ($) | Jun. 20, 2016shares | Jun. 15, 2015USD ($)$ / sharesshares | Dec. 10, 2014USD ($)employeeshares | Jul. 31, 2016shares | Sep. 30, 2016USD ($)plan$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014USD ($)$ / sharesshares | Jul. 05, 2016USD ($)$ / shares | Mar. 05, 2014shares | Sep. 30, 2013shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Dividends payable (in usd per share) | $ / shares | $ 1.50 | |||||||||||
Dividends payable | $ | $ 39,200,000 | |||||||||||
Required liquidity after dividend payments | $ | $ 25,000,000 | |||||||||||
Repurchases of common stock | $ | $ 45,000,000 | $ 0 | $ 45,650,000 | $ 0 | ||||||||
Shares acquired (in shares) | 6,900,000 | |||||||||||
Average cost per share (in usd per share) | $ / shares | $ 6.55 | |||||||||||
Repurchase costs | $ | $ 700,000 | |||||||||||
Number of equity incentive compensation plans maintained by the company | plan | 3 | |||||||||||
Intrinsic value of shares exercised | $ | $ 87,000 | 300,000 | 100,000 | |||||||||
Unvested restricted stock units (in shares) | 878,416 | |||||||||||
Stock-based compensation expense | $ | $ 2,162,000 | $ 3,620,000 | $ 2,987,000 | |||||||||
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | ||||||||||
Preferred stock, shares authorized (in shares) | 5,882,000 | 5,882,000 | ||||||||||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||
Common stock, shares issued (in shares) | 33,154,000 | 32,586,000 | ||||||||||
Common stock, shares outstanding (in shares) | 26,244,000 | 25,676,000 | ||||||||||
Number of outstanding warrants (in shares) | 400,001 | |||||||||||
Cash matching contribution | $ | $ 400,000 | $ 200,000 | ||||||||||
Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation (in shares) | 508,000 | 1,391,000 | 1,936,000 | |||||||||
Aggregate common shares issued (in shares) | 2,470,896 | |||||||||||
Purchases under the employee stock purchase plan (in shares) | 1,044,678 | |||||||||||
Issuance of common stock - ODPP (in shares) | 0 | 0 | 1,600 | |||||||||
Discontinued Operations [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock-based compensation expense | $ | $ (100,000) | $ 1,000,000 | $ 1,500,000 | |||||||||
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 | |||||||||||
Unrecognized compensation expense, period for recognition | 3 years 8 months 12 days | |||||||||||
Number of shares affected (in shares) | 56,000 | |||||||||||
Incremental expense (benefit) with modification | $ | $ (200,000) | |||||||||||
Stock-based compensation expense | $ | $ 38,000 | $ 194,000 | 135,000 | |||||||||
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) | 147,000 | |||||||||||
Number of employees affected | employee | 80 | |||||||||||
Incremental expense (benefit) with modification | $ | $ 49,000 | |||||||||||
Remaining unamortized stock-based compensation expense | $ | $ 2,600,000 | |||||||||||
Remaining unamortized stock-based compensation expense, period for recognition | 2 years 4 months 24 days | |||||||||||
Unvested restricted stock units (in shares) | 878,416 | 570,231 | ||||||||||
Outstanding non-vested RSUs aggregate intrinsic value | $ | $ 5,000,000 | |||||||||||
Outstanding non-vested RSUs weighted average remaining contractual term | 1 year 4 months 24 days | |||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, aggregate intrinsic value, vested | $ | $ 1,600,000 | $ 4,600,000 | $ 2,400,000 | |||||||||
Share-based compensation arrangement, by share-based payment award, options, vested and expected to vest, exercisable (in shares) | 800,000 | |||||||||||
Share based compensation arrangement, by share based payment award, equity instruments other than options, expected to vest, intrinsic value | $ | $ 4,700,000 | |||||||||||
Share based compensation arrangement, by share based payment award, equity investments other than options, expected to vest, weighted average contractual term | 1 year 4 months 24 days | |||||||||||
Granted (in usd per share) | $ / shares | $ 5.53 | $ 5.38 | $ 4.89 | |||||||||
Granted (in shares) | 449,250 | |||||||||||
Vested (in shares) | 300,000 | 283,553 | ||||||||||
Employee stock purchase plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock-based compensation expense | $ | $ 223,000 | $ 143,000 | $ 289,000 | |||||||||
401(k) match in common stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock-based compensation expense | $ | $ 0 | $ 284,000 | $ 513,000 | |||||||||
Officer and Director Share Purchase Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares authorized (in shares) | 125,000 | |||||||||||
2012 Equity Incentive Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Incremental shares authorized (in shares) | 500,000 | |||||||||||
Shares authorized (in shares) | 2,500,000 | |||||||||||
Shares available for issuance (in shares) | 921,527 | |||||||||||
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 | |||||||||||
Total ESPP shares authorized (in shares) | 3,515,574 | 3,250,000 | ||||||||||
Employee Stock Purchase Plan, Incremental Increase in Shares Available | 265,574 | |||||||||||
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 | |||||||||||
Chief Financial Officer [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock-based compensation expense | $ | $ 300,000 | |||||||||||
Chief Financial Officer [Member] | Restricted Stock Units [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 150,000 | |||||||||||
Subsequent Event [Member] | Chief Financial Officer [Member] | Performance Shares [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 195,180 | |||||||||||
Grant date fair value | $ | $ 1,400,000 | |||||||||||
Subsequent Event [Member] | Chief Executive Officer [Member] | Restricted Stock Units [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 70,000 | |||||||||||
Grant date fair value | $ | $ 400,000 | |||||||||||
Subsequent Event [Member] | Chief Executive Officer [Member] | Performance Shares [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 100,000 | |||||||||||
Grant date fair value | $ | $ 700,000 | |||||||||||
Common Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock, shares outstanding (in shares) | 26,244,000 | 25,676,000 | 31,109,000 | 29,982,000 | ||||||||
Issuance of common stock - ESPP (in shares) | 193,000 | 121,000 | 341,000 | |||||||||
Issuance of common stock - ODPP (in shares) | 2,000 | |||||||||||
Minimum [Member] | Subsequent Event [Member] | Performance Shares [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | |||||||||||
Maximum [Member] | Subsequent Event [Member] | Performance Shares [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% |
Equity (Schedule of Stock Optio
Equity (Schedule of Stock Options Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Number of Shares | |||
Outstanding, beginning of period (in shares) | 696,459 | ||
Granted (in shares) | 27,900 | ||
Share adjustment for special dividend (in shares) | 185,726 | ||
Exercised (in shares) | (45,340) | ||
Forfeited (in shares) | (9,353) | ||
Expired (in shares) | (105,054) | ||
Outstanding, end of period (in shares) | 750,338 | 696,459 | |
Exercisable (in shares) | 680,859 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning of period (in usd per share) | $ 22.47 | ||
Granted (in usd per share) | 6.01 | ||
Share adjustment for special dividend (in usd per share) | 17.09 | ||
Exercised (in usd per share) | 4.97 | ||
Forfeited (in usd per share) | 5.49 | ||
Expired (in usd per share) | 27.72 | ||
Outstanding, end of period (in usd per share) | 16.84 | $ 22.47 | |
Exercisable (in usd per share) | $ 17.06 | ||
Weighted Average Remaining Contractual Life (in years): | |||
Outstanding | 2 years 3 months 22 days | ||
Exercisable | 1 year 7 months 21 days | ||
Vested and expected to vest | |||
Number of stock options (in shares) | 736,937 | ||
Weighted average exercise price (in usd per share) | $ 18.08 | ||
Weighted average remaining contractual term | 2 years 2 months 9 days | ||
Aggregate Intrinsic Value | |||
Intrinsic value of shares exercised | $ 87 | $ 300 | $ 100 |
Outstanding | 479 | ||
Exercisable | 406 | ||
Vested and expected to vest | $ 466 |
Equity (Schedule of Valuation A
Equity (Schedule of Valuation Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Black-Scholes weighted average assumptions: | |||
Expected dividend rate | 0.00% | 0.00% | 0.00% |
Expected stock price volatility rate | 60.90% | 66.10% | 92.80% |
Risk-free interest rate | 1.60% | 1.80% | 1.90% |
Expected term (in years) | 6 years | 6 years | 6 years |
Weighted average grant date fair value per share of stock option granted (in usd per share) | $ 3.40 | $ 3.73 | $ 3.53 |
Equity (Schedule of Restricted
Equity (Schedule of Restricted Stock Activity) (Details) - $ / shares | Dec. 10, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Number of Shares | ||||
Non-vested, ending balance (in shares) | 878,416 | |||
Restricted Stock Units [Member] | ||||
Number of Shares | ||||
Non-vested, beginning balance (in shares) | 570,231 | |||
Granted (in shares) | 449,250 | |||
Share adjustment for special dividend (in shares) | 200,061 | |||
Vested (in shares) | (300,000) | (283,553) | ||
Forfeited (in shares) | (57,573) | |||
Non-vested, ending balance (in shares) | 878,416 | 570,231 | ||
Weighted Average Grant Date Fair Value | ||||
Non-vested, beginning balance (in usd per share) | $ 5.26 | |||
Granted (in usd per share) | 5.53 | $ 5.38 | $ 4.89 | |
Share adjustment for special dividend (in usd per share) | 0 | |||
Vested (in usd per share) | 5.17 | |||
Forfeited (in usd per share) | 5.04 | |||
Non-vested, ending balance (in usd per share) | $ 4.25 | $ 5.26 |
Equity (Schedule of Stock-based
Equity (Schedule of Stock-based Compensation Expense - by Award Type) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 2,162 | $ 3,620 | $ 2,987 |
Employee stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 38 | 194 | 135 |
Restricted stock awards and units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,683 | 2,658 | 1,683 |
Employee stock purchase plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 223 | 143 | 289 |
401(k) match in common stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 0 | 284 | 513 |
Outside director fees in common stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 218 | $ 341 | $ 367 |
Equity (Schedule of Stock-bas66
Equity (Schedule of Stock-based Compensation Expense - by Expense Category) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 2,162 | $ 3,620 | $ 2,987 |
Cost of revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 345 | 341 | 466 |
Selling, general, and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1,445 | 2,847 | 1,912 |
Research and development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 372 | $ 432 | $ 609 |
Equity (Schedule of Earnings pe
Equity (Schedule of Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | |||||||||||
Income (loss) from continuing operations | $ 1,737 | $ 1,178 | $ (162) | $ (134) | $ 1,350 | $ 464 | $ (956) | $ (3,130) | $ 2,619 | $ (2,272) | $ 4,082 |
Income from discontinued operations | 259 | 123 | 4,144 | 1,121 | 130 | 1,976 | 4,008 | 59,258 | 5,647 | 65,372 | 770 |
Net income | $ 1,996 | $ 1,301 | $ 3,982 | $ 987 | $ 1,480 | $ 2,440 | $ 3,052 | $ 56,128 | $ 8,266 | $ 63,100 | $ 4,852 |
Denominator: | |||||||||||
Denominator for basic net income (loss) per share - weighted average shares outstanding (in shares) | 26,177 | 26,103 | 25,942 | 25,697 | 25,615 | 31,203 | 32,077 | 31,217 | 25,979 | 30,012 | 30,453 |
Dilutive options outstanding, unvested stock units and ESPP (in shares) | 539 | 0 | 324 | ||||||||
Denominator for diluted net income (loss) per share - adjusted weighted average shares outstanding (in shares) | 26,674 | 26,269 | 25,942 | 25,697 | 25,896 | 31,432 | 32,077 | 31,217 | 26,518 | 30,012 | 30,777 |
Net (loss) income per basic share: | |||||||||||
Net income (loss) per basic share, continuing operations, (in usd per share) | $ 0.07 | $ 0.05 | $ (0.01) | $ 0 | $ 0.05 | $ 0.02 | $ (0.03) | $ (0.10) | $ 0.10 | $ (0.08) | $ 0.13 |
Net (loss) income per basic share, discontinued operations (in usd per share) | 0.22 | 2.18 | 0.03 | ||||||||
Net income per basic share (in usd per share) | 0.32 | 2.10 | 0.16 | ||||||||
Earnings Per Share, Diluted [Abstract] | |||||||||||
Net income (loss) per diluted share, continuing operations (in usd per share) | 0.06 | 0.05 | (0.01) | 0 | 0.05 | 0.02 | (0.03) | (0.10) | 0.10 | (0.08) | 0.13 |
Net income per diluted share, discontinued operations (in usd per share) | 0.21 | 2.18 | 0.03 | ||||||||
Net income per diluted share (in usd per share) | $ 0.07 | $ 0.05 | $ 0.15 | $ 0.04 | $ 0.06 | $ 0.08 | $ 0.10 | $ 1.80 | $ 0.31 | $ 2.10 | $ 0.16 |
Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation (in shares) | 508 | 1,391 | 1,936 | ||||||||
Average market price of common stock (in dollars per share) | $ 5.88 | $ 5.81 | $ 4.69 |
Equity (Schedule of Common Stoc
Equity (Schedule of Common Stock Reserved for Future Issuances) (Details) - shares | Sep. 30, 2016 | Sep. 30, 2015 |
Equity [Abstract] | ||
Exercise of outstanding stock options (in shares) | 750,338 | 696,459 |
Unvested restricted stock units (in shares) | 878,416 | |
Purchases under the employee stock purchase plan (in shares) | 1,044,678 | |
Issuance of stock-based awards under the Equity Plans (in shares) | 926,893 | |
Purchases under the officer and director share purchase plan (in shares) | 88,741 | |
Issuance of deferred stock-based awards under the Directors' Stock Award Plan, as amended (in shares) | 28,840 | |
Total reserved (in shares) | 3,717,906 |
Geographical Information (Narra
Geographical Information (Narrative) (Details) | Dec. 10, 2014segment | Sep. 30, 2016segmentcustomers | Sep. 30, 2015customers | Sep. 30, 2014customers | Sep. 30, 2014segment |
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 | 3 | 4 | 3 | ||
Percentage of long-lived assets located in the United States | 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 | 61.00% | 61.00% | 41.00% |
Geographical Information (Sched
Geographical Information (Schedule of Revenue by Geographic Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 25,600 | $ 22,376 | $ 21,532 | $ 22,490 | $ 23,018 | $ 21,194 | $ 19,057 | $ 18,416 | $ 91,998 | $ 81,685 | $ 55,514 |
United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 66,436 | 55,736 | 37,284 | ||||||||
Asia [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 17,401 | 16,885 | 8,652 | ||||||||
Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 7,618 | 8,249 | 7,746 | ||||||||
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 543 | $ 815 | $ 1,832 |
Selected Quarterly Financial 71
Selected Quarterly Financial Information (unaudited) (Summary of Selected Quarter Financial Information) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting [Abstract] | |||||||||||
Revenue | $ 25,600 | $ 22,376 | $ 21,532 | $ 22,490 | $ 23,018 | $ 21,194 | $ 19,057 | $ 18,416 | $ 91,998 | $ 81,685 | $ 55,514 |
Cost of revenue | 16,481 | 14,964 | 14,510 | 15,089 | 13,568 | 13,511 | 12,678 | 13,237 | 61,044 | 52,994 | 43,400 |
Gross profit | 9,119 | 7,412 | 7,022 | 7,401 | 9,450 | 7,683 | 6,379 | 5,179 | 30,954 | 28,691 | 12,114 |
Operating expense (income): | |||||||||||
Selling, general, and administrative | 4,963 | 6,125 | 4,825 | 4,821 | 5,587 | 4,543 | 5,954 | 8,627 | 20,734 | 24,711 | 23,239 |
Research and development | 2,392 | 2,405 | 2,564 | 2,560 | 2,649 | 2,274 | 2,022 | 2,174 | 9,921 | 9,119 | 9,306 |
Recovery of previously incurred litigation related fees and expenses from arbitration award | 0 | (2,599) | 0 | 0 | (2,599) | 0 | 0 | ||||
Gain from change in estimate on ARO obligation | 0 | 0 | 0 | (845) | 0 | (845) | 0 | ||||
(Gain) loss on sale of assets | 0 | (41) | 0 | 0 | 0 | 0 | 0 | 228 | (41) | 228 | (100) |
Total operating expense | 7,355 | 5,890 | 7,389 | 7,381 | 8,236 | 6,817 | 7,976 | 10,184 | 28,015 | 33,213 | 32,445 |
Operating income (loss) | 1,764 | 1,522 | (367) | 20 | 1,214 | 866 | (1,597) | (5,005) | 2,939 | (4,522) | (20,331) |
Other income (expense): | |||||||||||
Interest income (expense), net | 48 | 32 | 25 | (17) | 36 | 4 | 165 | (130) | 88 | 75 | (522) |
Foreign exchange loss | (83) | (201) | 25 | (135) | (239) | 50 | (6) | 57 | (394) | (138) | (7) |
Change in fair value of financial instruments | 0 | 0 | 86 | 36 | 0 | 122 | 34 | ||||
Total other (expense) income | (35) | (169) | 50 | (152) | (203) | 54 | 245 | (37) | (306) | 59 | (137) |
Income (loss) from continuing operations before income tax (expense) benefit | 1,729 | 1,353 | (317) | (132) | 1,011 | 920 | (1,352) | (5,042) | 2,633 | (4,463) | (20,468) |
Income tax (expense) benefit | 8 | (175) | 155 | (2) | 339 | (456) | 396 | 1,912 | (14) | 2,191 | 24,550 |
Income (loss) from continuing operations | 1,737 | 1,178 | (162) | (134) | 1,350 | 464 | (956) | (3,130) | 2,619 | (2,272) | 4,082 |
Income from discontinued operations, net of tax | 259 | 123 | 4,144 | 1,121 | 130 | 1,976 | 4,008 | 59,258 | 5,647 | 65,372 | 770 |
Net income | $ 1,996 | $ 1,301 | $ 3,982 | $ 987 | $ 1,480 | $ 2,440 | $ 3,052 | $ 56,128 | $ 8,266 | $ 63,100 | $ 4,852 |
Per share data: | |||||||||||
Net income (loss) per basic share, continuing operations, (in usd per share) | $ 0.07 | $ 0.05 | $ (0.01) | $ 0 | $ 0.05 | $ 0.02 | $ (0.03) | $ (0.10) | $ 0.10 | $ (0.08) | $ 0.13 |
Net income per basic share, discontinued operations (in usd per share) | 0.01 | 0 | 0.16 | 0.04 | 0.01 | 0.06 | 0.13 | 1.90 | 0.22 | 2.18 | 0.03 |
Net income per basic share (in usd per share) | 0.08 | 0.05 | 0.15 | 0.04 | 0.06 | 0.08 | 0.10 | 1.80 | 0.32 | 2.10 | 0.16 |
Net income (loss) per diluted share, continuing operations (in usd per share) | 0.06 | 0.05 | (0.01) | 0 | 0.05 | 0.02 | (0.03) | (0.10) | 0.10 | (0.08) | 0.13 |
Net income per diluted share, discontinued operations (in usd per share) | 0.01 | 0 | 0.16 | 0.04 | 0.01 | 0.06 | 0.13 | 1.90 | 0.21 | 2.18 | 0.03 |
Net income per diluted share (in usd per share) | $ 0.07 | $ 0.05 | $ 0.15 | $ 0.04 | $ 0.06 | $ 0.08 | $ 0.10 | $ 1.80 | $ 0.31 | $ 2.10 | $ 0.16 |
Weighted-average number of basic shares outstanding (in shares) | 26,177 | 26,103 | 25,942 | 25,697 | 25,615 | 31,203 | 32,077 | 31,217 | 25,979 | 30,012 | 30,453 |
Weighted-average number of basic shares outstanding (in shares) | 26,674 | 26,269 | 25,942 | 25,697 | 25,896 | 31,432 | 32,077 | 31,217 | 26,518 | 30,012 | 30,777 |