EMCORE (EMKR) 10-Q 7 Feb 17 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2016	Feb. 01, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	EMCORE CORPORATION
Entity Central Index Key	808,326
Document Type	10-Q
Document Period End Date	Dec. 31, 2016
Document Fiscal Period Focus	Q1
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		26,584,521

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Revenue	$ 30,176	$ 22,490
Cost of revenue	20,133	15,089
Gross profit	10,043	7,401
Operating expense:
Selling, general, and administrative	5,578	4,821
Research and development	2,199	2,560
Total operating expense	7,777	7,381
Operating income	2,266	20
Other income (expense):
Interest income (expense), net	23	(17)
Foreign exchange loss	(403)	(135)
Total other expense	(380)	(152)
Income (loss) from continuing operations before income tax expense	1,886	(132)
Income tax expense	(120)	(2)
Income (loss) from continuing operations	1,766	(134)
(Loss) income from discontinued operations, net of tax	(9)	1,121
Net income	1,757	987
Foreign exchange translation adjustment	(260)	(88)
Comprehensive income	$ 1,497	$ 899
Per share data:
Net income (loss) per basic share, continuing operations, (in usd per share)	$ 0.07	$ 0
Net income per basic share, discontinued operations (in usd per share)	0	0.04
Net income per basic share (in usd per share)	0.07	0.04
Net income (loss) per diluted share, continuing operations (in usd per share)	0.07	0
Net income per diluted share, discontinued operations (in usd per share)	0	0.04
Net income per diluted share (in usd per share)	$ 0.07	$ 0.04
Weighted-average number of basic shares outstanding (in shares)	26,279	25,697
Weighted-average number of basic shares outstanding (in shares)	27,039	25,697

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Current assets:
Cash and cash equivalents	$ 62,181	$ 63,905
Restricted cash	562	965
Accounts receivable, net of allowance of $33 and $36, respectively	21,029	18,432
Inventory	28,198	24,150
Prepaid expenses and other current assets	3,564	3,764
Total current assets	115,534	111,216
Property, plant, and equipment, net	14,043	12,213
Non-current inventory	3,565	3,531
Other non-current assets, net of allowance of $0	257	251
Total assets	133,399	127,211
Current liabilities:
Accounts payable	14,806	10,575
Accrued expenses and other current liabilities	7,331	7,684
Total current liabilities	22,137	18,259
Asset retirement obligations	1,590	1,573
Other long-term liabilities	60	62
Total liabilities	23,787	19,894
Commitments and contingencies (Note 11)
Shareholders’ equity:
Preferred stock, $0.0001 par value, 5,882 shares authorized; none issued or outstanding	0	0
Common stock, no par value, 50,000 shares authorized; 33,185 shares issued and 26,275 shares outstanding as of December 31, 2016; 33,154 shares issued and 26,244 shares outstanding as of September 30, 2016	726,678	725,880
Treasury stock at cost; 6,910 shares	(47,721)	(47,721)
Accumulated other comprehensive income	319	579
Accumulated deficit	(569,664)	(571,421)
Total shareholders’ equity	109,612	107,317
Total liabilities and shareholders’ equity	$ 133,399	$ 127,211

Condensed Consolidated Balance4

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Accounts receivable:
Allowance for doubtful accounts	$ 33	$ 36
Other non-current assets:
Allowance for non-current assets	$ 0	$ 0
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)	33,185,000	33,154,000
Common stock, shares outstanding (in shares)	26,275,000	26,244,000
Treasury stock, shares held (in shares)	6,910,000	6,910,000

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income	$ 1,757	$ 987
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion expense	758	506
Stock-based compensation expense	772	387
Provision adjustments related to doubtful accounts	0	4
Provision adjustments related to product warranty	88	146
Gain on settlement of solar power assets and obligations	0	(689)
Gain on settlement of Newark lease	0	(310)
Total non-cash adjustments	1,618	44
Changes in operating assets and liabilities:
Accounts receivable	(2,645)	2,877
Inventory	(4,549)	2,115
Other assets	149	1,439
Accounts payable	4,824	(43)
Accrued expenses and other current liabilities	(495)	(1,686)
Total change in operating assets and liabilities	(2,716)	4,702
Net cash provided by operating activities	659	5,733
Cash flows from investing activities:
Purchase of equipment	(3,242)	(1,677)
Net cash used in investing activities	(3,242)	(1,677)
Cash flows from financing activities:
Proceeds from stock plans	104	186
Decrease (increase) in restricted cash	403	(728)
Net cash provided by (used in) financing activities	507	(542)
Effect of exchange rate changes on foreign currency	352	121
Net (decrease) increase in cash and cash equivalents	(1,724)	3,635
Cash and cash equivalents at beginning of period	63,905	111,885
Cash and cash equivalents at end of period	62,181	115,520
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest	20	23
Cash paid during the period for income taxes	2	108
NON-CASH INVESTING AND FINANCING ACTIVITIES
Changes in accounts payable related to purchases of equipment	$ (455)	$ (206)

Description of Business

Description of Business	3 Months Ended
	Dec. 31, 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”), was 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. 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 advisers 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 In the fiscal year ended September 30, 2015 EMCORE completed the sale of the company's Photovoltaics Business to SolAero Technologies Corporation (“SolAero”) pursuant to the Asset Purchase Agreement (the “Photovoltaics Agreement”) under 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 $149.9 million in cash. In the fiscal year ended September 30, 2015 EMCORE completed the sale of the company's telecommunications business (the “Digital Products Business”) to NeoPhotonics Corporation, a Delaware corporation (“NeoPhotonics”) pursuant to the Asset Purchase Agreement (the “Digital Products Agreement”), under which NeoPhotonics acquired certain assets, and certain liabilities, related to the Company's Digital Products Business for an aggregate purchase price of $17.5 million . No Photovoltaics Business or Digital Products Business assets or liabilities that were sold remain on the consolidated balance sheet as of December 31, 2016 or September 30, 2016 . The financial results of the Photovoltaics Business and the Digital Products Business are presented as “discontinued operations” on the condensed consolidated statements of operations and comprehensive income for the three months ended December 31, 2016 and 2015 . See Note 3 - Discontinued Operations for additional information. The notes to our condensed consolidated financial statements relate to our continuing operations only, unless otherwise indicated. Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim information, and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and notes required by U.S. GAAP for annual financial statements. In our opinion, the interim financial statements reflect all normal adjustments that are necessary to provide a fair presentation of the financial results for the interim periods presented. Operating results for interim periods are not necessarily indicative of results that may be expected for an entire fiscal year. The condensed consolidated balance sheet as of September 30, 2016 has been derived from the audited consolidated financial statements as of such date as adjusted for discontinued operations. See Note 3 - Discontinued Operations for additional information. For a more complete understanding of our business, financial position, operating results, cash flows, risk factors and other matters, please refer to our Annual Report on Form 10-K for the fiscal year ended September 30, 2016.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Dec. 31, 2016
Accounting Policies [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 November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which provides amendments to current guidance to address the classification and presentation of changes in restricted cash or restricted cash equivalents. Specifically, there is no guidance to address how to classify and present changes in restricted cash or restricted cash equivalents that occur when there are transfers between cash, cash equivalents and restricted cash or restricted cash equivalents and when there are direct cash receipts into restricted cash or restricted cash equivalents. The new guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. The new standard will be effective for our fiscal year beginning October 1, 2018 and early adoption is permitted. We are currently evaluating the impact of this accounting standard update on our Consolidated Financial Statements. • In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 introduces targeted amendments intended to simplify the accounting for stock compensation. Specifically, the ASU requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the 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 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. The Company has not yet adopted a transition method nor has it determined the effect of the standard on our ongoing financial reporting.

Discontinued Operations

Discontinued Operations	3 Months Ended
	Dec. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Discontinued Operations Sale of Photovoltaics Business In the fiscal year ended September 30, 2015 EMCORE completed the sale of the company's Photovoltaics Business to SolAero pursuant to the Photovoltaics Agreement under 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 for $149.9 million in cash. On December 22, 2015 , we settled all of the outstanding rights and obligations of a solar power venture in Spain, including outstanding non-current receivables, for a payment of $0.7 million . The outstanding non-current receivables had a net book value of $0 at the time of settlement as they were fully allowed for previously. The resulting gain was recorded in the discontinued operations of the Photovoltaics Business for the three months ended December 31, 2015 . The following table presents the statements of operations for the discontinued operations of the Photovoltaics Business: For the three months ended December 31, (in thousands) 2016 2015 Revenue $ — $ — Cost of revenue — — Gross profit — — Operating expense (income) 3 (787 ) (Loss) income from discontinued operations before income tax expense (3 ) 787 Income tax expense — (9 ) (Loss) income from discontinued operations, net of tax $ (3 ) $ 778 Included in discontinued operations of the Photovoltaics Business during the three months ended December 31, 2015 were $0.1 million of New Mexico incentive tax credits received. There were no incentive tax credits received during the three months ended December 31, 2016 . Sale of Digital Products Business In the fiscal year ended September 30, 2015 EMCORE completed the sale of the company's Digital Products Business to NeoPhotonics pursuant to the Digital Products Agreement, under which NeoPhotonics acquired certain assets, and certain liabilities, related to the Company's Digital Products Business for an aggregate purchase price of $17.5 million . 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. As a result of this agreement, we paid $0.2 million and recorded a gain of $0.3 million on the lease termination in the discontinued operations of the Digital Products Business during the three months ended December 31, 2015 . See Note 8 - Accrued Expenses and Other Current Liabilities . The following table presents the statements of operations for the discontinued operations of the Digital Products Business: For the three months ended December 31, (in thousands) 2016 2015 Revenue $ — $ — Cost of revenue 1 (49 ) Gross (loss) profit (1 ) 49 Operating expense (income) 5 (298 ) (Loss) income from discontinued operations before income tax expense (6 ) 347 Income tax expense — (4 ) (Loss) income from discontinued operations, net of tax $ (6 ) $ 343 There were no incentive tax credits received from the Digital Products Business during the three months ended December 31, 2016 and 2015 .

Fair Value Accounting

Fair Value Accounting	3 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Accounting	Fair Value Accounting Accounting Standards Codification (“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	3 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Accounts Receivable	Accounts Receivable The components of accounts receivable consisted of the following: As of As of (in thousands) December 31, September 30, 2016 Accounts receivable, gross $ 21,062 $ 18,468 Allowance for doubtful accounts (33 ) (36 ) Accounts receivable, net $ 21,029 $ 18,432 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 three months ended December 31, 2016 and 2015 . Allowance for Doubtful Accounts (in thousands) For the Three Months Ended December 31, 2016 2015 Balance at beginning of period $ 36 $ 462 Provision adjustment - expense, net of recoveries — 4 Write-offs and other adjustments - additions (deductions) to receivable balances (3 ) (141 ) Balance at end of period $ 33 $ 325

Inventory

Inventory	3 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Inventory	Inventory The components of inventory consisted of the following: As of As of (in thousands) December 31, September 30, 2016 Raw materials $ 16,515 $ 16,095 Work in-process 6,996 5,687 Finished goods 8,252 5,899 Inventory balance at end of period $ 31,763 $ 27,681 Current portion $ 28,198 $ 24,150 Non-Current portion 3,565 3,531 Inventory balance at end of period $ 31,763 $ 27,681 The non-current inventory balance of $3.6 million and $3.5 million as of December 31, 2016 and September 30, 2016 , respectively, 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	3 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property, Plant, and Equipment, net	Property, Plant, and Equipment, net The components of property, plant, and equipment, net consisted of the following: As of As of (in thousands) December 31, September 30, 2016 Equipment $ 29,908 $ 28,247 Furniture and fixtures 1,109 1,109 Computer hardware and software 2,856 2,860 Leasehold improvements 1,870 1,896 Construction in progress 2,622 1,779 Property, plant, and equipment, gross 38,365 35,891 Accumulated depreciation (24,322 ) (23,678 ) Property, plant, and equipment, net $ 14,043 $ 12,213

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities The components of accrued expenses and other current liabilities consisted of the following: As of As of (in thousands) December 31, September 30, 2016 Compensation $ 2,858 $ 3,628 Warranty 791 871 Professional fees 984 761 Customer deposits 39 38 Income and other taxes 1,083 944 Severance and restructuring accruals 710 642 Other 866 800 Accrued expenses and other current liabilities $ 7,331 $ 7,684 Compensation : Compensation is primarily comprised of accrued employee salaries, taxes and benefits. Income and other taxes : For the three months ended December 31, 2016 , the Company recorded approximately $120,000 of income tax expense from continuing operations and $0 of income tax benefit within income from discontinued operations. For the three months ended December 31, 2015 , the Company reported $2,000 of income tax expense from continuing operations losses and $13,000 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. Severance and restructuring accruals : 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 (defined below), 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 was recorded in the discontinued operations of the Digital Products Business for the three months ended December 31, 2015 . See Note 3 - Discontinued Operations . On June 7, 2016 , the Company's former Chief Financial Officer (¥“CFO”) notified the Company that he would resign as the Company's CFO, effective as of June 20, 2016 (the “Separation Date”). The Company and the former CFO entered into a separation agreement and general release, dated June 7, 2016 (the “Separation Agreement”), which includes mutual releases by the former CFO and the Company of all claims related to his 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 the former CFO. The Company recorded a charge of approximately $0.4 million in the fiscal year ended September 30, 2016 related to this 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 . In November 2016 , the Company announced an additional reduction in the workforce of approximately 5 individuals and recorded a charge of $0.2 million in the three months ended December 31, 2016 related to the outsourcing of our satellite communications assembly operations. 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 accrual account: (in thousands) Severance-related accruals Balance as of September 30, 2016 $ 642 Expense - charged to accrual 172 Payments and accrual adjustments (104 ) Balance as of December 31, 2016 $ 710 Warranty: We generally provide product and other warranties on our components, power systems, and fiber optic products. Certain parts and labor warranties from our vendors can be assigned to our customers. Our reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. The following table summarizes the changes in our product warranty accrual accounts: Product Warranty Accruals For the three months ended December 31, (in thousands) 2016 2015 Balance at beginning of period $ 871 $ 1,664 Provision for product warranty - expense 88 146 Adjustments and utilization of warranty accrual (168 ) (246 ) Balance at end of period $ 791 $ 1,564

Credit Facilities

Credit Facilities	3 Months Ended
	Dec. 31, 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, N.A. (“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 December 31, 2016 , there were no amounts outstanding under this Credit Facility and the Company was in compliance with all financial covenants. Also, as of December 31, 2016 , the Credit Facility had approximately $0.5 million reserved for one stand-by letter of credit and $9.8 million available for borrowing. As of February 1, 2017 , there was no outstanding balance under this Credit Facility.

Income and other Taxes

Income and other Taxes	3 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income and other Taxes	Income and other Taxes During the three months ended December 31, 2016 and 2015 , the Company recorded income tax expense from continuing operations of approximately $0.1 million and $2,000 , respectively. For the three months ended December 31, 2016 and 2015 , the Company recorded income tax expense from discontinued operations of approximately $0 and $13,000 , 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 three months ended December 31, 2016 and 2015 , the effective tax rate on continuing operations was 6.4% and 1.5% , respectively. The higher tax rate for the three months ended December 31, 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 the three months ended December 31, 2015 was primarily due to permanent differences, state tax benefits and foreign tax rate differentials. The Company uses estimates to forecast the results from continuing operations for the current fiscal year as well as permanent differences between book and tax accounting. We have not provided for U.S. federal and state income taxes on non-U.S. subsidiaries' undistributed earnings as of December 31, 2016 because we plan to indefinitely reinvest the unremitted earnings of our non-U.S. subsidiaries. All deferred tax assets have a full valuation allowance at December 31, 2016 . However, on a quarterly basis, the Company will evaluate the positive and negative evidence to assess whether the more likely than not criteria, mandated by ASC 740, has been satisfied in determining whether there will be further adjustments to the valuation allowance. During the three months ended December 31, 2016 and 2015 , there were no material increases or decreases in unrecognized tax benefits. As of December 31, 2016 and September 30, 2016 , we had approximately $0.3 million of interest and penalties accrued as tax liabilities on our condensed consolidated balance sheet. 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.”

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies 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 $0.3 million for the three months ended December 31, 2016 and 2015 . 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 includes 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 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 the ARO. The fair value of our ARO was 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 was no ARO settled during the three months ended December 31, 2016 . See discussion below regarding ARO settlements during the three months ended December 31, 2015 . Accretion expense of $17,000 and $15,000 was recorded during the three months ended December 31, 2016 and 2015 , respectively. EMCORE leases its primary 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 three months ended December 31, 2015 , the Company entered into an agreement to terminate the lease and related obligations, including ARO, in Newark, California for a one-time settlement payment of $0.2 million . As a result of this agreement and payment, the Company reduced its ARO associated with the Newark facility by $0.3 million . Indemnifications : We have agreed to indemnify certain customers against claims of infringement of intellectual property rights of others in our sales contracts with these customers. Historically, we have not paid any claims under these indemnification obligations. 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 owed 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 3 - Discontinued Operations . Legal Proceedings : We are subject to various legal proceedings, claims, and litigation, either asserted or unasserted, that arise in the ordinary course of business. While the outcome of these matters is currently not determinable, we do not expect the resolution of these matters 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 alleged 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 were premised primarily on the allegation that Mirasol and the putative class members were not provided with their legally required meal periods. Mirasol sought 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 previously agreed to release the Company from all potential claims related to the matters alleged in the Mirasol lawsuit. The Company had recorded an accrual for these amounts at September 30, 2016 that was not material to the Company's results of operations, financial condition or cash flows, which had been recorded within Operating Expenses for the fiscal year ended September 30, 2016 . On January 6, 2017 , the Company and Mirasol agreed to a settlement of $0.3 million with regards to all claims outstanding. During the three months ended December 31, 2016 , the Company recorded an accrual of $0.2 million within Operating Expenses related to the settlement. c) Mirasol Wrongful Termination Lawsuit In August 2016, EMCORE was served with a second lawsuit by former employee 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 asserted 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 alleged 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 sought general, special, and punitive damages. On January 6, 2017 , the Company and Mirasol agreed to a settlement of $50,000 with regards to all outstanding claims. This amount was accrued as of December 31, 2016 .

Equity

Equity	3 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Equity	Equity Equity Plans We provide long-term incentives to eligible officers, directors, and employees in the form of equity-based awards. We maintain three equity incentive compensation plans, collectively described below as our “Equity Plans”: • the 2000 Stock Option Plan, • the 2010 Equity Incentive Plan (“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. Stock Options Most of our stock options vest and become exercisable over a four to five year period and have a contractual life of 10 years. Certain stock options awarded are intended to qualify as incentive stock options pursuant to Section 422A of the Internal Revenue Code. The following table summarizes stock option activity under the Equity Plans for the three months ended December 31, 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, 2016 750,338 $16.84 Granted — — Exercised (26,151 ) $3.99 $ 120 Forfeited (1,300 ) $4.11 Expired (124,915 ) $19.91 Outstanding as of December 31, 2016 597,972 $16.79 2.44 $ 1,101 Exercisable as of December 31, 2016 531,911 $18.30 1.67 $ 832 Vested and expected to vest as of December 31, 2016 586,261 $17.03 2.31 $ 1,054 (*) Intrinsic value for stock options represents the “in-the-money” portion or the positive variance between a stock option's exercise price and the underlying stock price. For the three months ended December 31, 2015, the intrinsic value of options exercised was $80,000 . As of December 31, 2016 , there was approximately $0.2 million of unrecognized stock-based compensation expense, net of estimated forfeitures, related to non-vested stock options granted under the Equity Plans which is expected to be recognized over an estimated weighted average life of 3.4 years. Valuation Assumptions There were no stock option grants for the three months ended December 31, 2016 . The fair value of each stock option grant for the three months ended December 31, 2015 , 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 three months ended December 31, 2015 Black-Scholes weighted average assumptions: Expected dividend rate — % Expected stock price volatility rate 61.6 % Risk-free interest rate 1.8 % Expected term (in years) 6.0 Weighted average grant date fair value per share of stock options granted: $ 4.18 Expected Dividend Yield: The Black-Scholes valuation model calls for a single expected dividend rate as an input. Although we paid a special dividend in July 2016, no dividend rate was assumed in the valuation. Expected Stock Price Volatility Rate: The fair values of stock-based payments were calculated 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 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 to 4 years and are subject to forfeiture if employment terminates prior to the lapse of the restrictions. RSUs are not considered issued or outstanding common stock until they vest. The following table summarizes the activity related to RSUs for the three months ended December 31, 2016 : Restricted Stock Activity Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Non-vested as of September 30, 2016 878,416 $4.25 Granted 145,919 $7.29 Vested (5,206 ) $6.01 Forfeited (933 ) $4.74 Non-vested as of December 31, 2016 1,018,196 $4.67 As of December 31, 2016 , there was approximately $3.1 million of remaining unamortized stock-based compensation expense, net of estimated forfeitures, associated with RSUs, which will be expensed over a weighted average remaining service period of approximately 2.4 years. The 1.0 million outstanding non-vested RSUs have an aggregate intrinsic value of approximately $8.9 million and a weighted average remaining contractual term of 1.4 years. For the three months ended December 31, 2016 and 2015 , the intrinsic value of RSUs vested was approximately $32,000 and $1,800 , respectively. Of the 1.0 million outstanding non-vested RSUs at December 31, 2016 , approximately 1.0 million are expected to vest and have an aggregate intrinsic value of approximately $8.4 million and a weighted average remaining contractual term of 1.3 years. For the three months ended December 31, 2015 , the weighted average grant date fair value of RSUs granted was $7.82 . On October 18, 2016, the Company granted 70,000 RSUs with a grant date fair value of $0.4 million to its CEO, Jeffrey Rittichier, that will vest in 4 equal annual installments beginning on October 18, 2017. Performance Stock Performance based restricted stock units (PSUs) granted to employees under the 2012 Plan typically vest over 1 to 3 years and are subject to forfeiture if employment terminates prior to the lapse of the restrictions. PSUs are not considered issued or outstanding common stock until they vest. PSUs that are granted to our executive officers and key employees are provided as long-term incentive compensation that is based on relative total shareholder return, which measures our performance against that of our competitors. On October 18, 2016, the Company granted our CEO, Mr. Rittichier, 100,000 target PSUs with a grant date fair value of $0.7 million and our CFO, Jikun Kim, 195,180 target PSUs with a grant date fair value of $1.4 million . The PSUs issued will be based on a combination of the relative total shareholder return of EMCORE’S stock compared to the Russell Microcap Index and the executive's continued employment. The total number of shares to be issued to each individual ranges 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. On December 14, 2016 , the Company granted 71,669 target PSUs with a grant date fair value of $1.0 million to certain employees. The PSUs issued will vest based on a combination of the relative total shareholder return of EMCORE’s stock compared to the Russell Microcap Index and the employee's continued employment. 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 the target PSUs will vest, if at all, on December 14, 2019 . The following table summarizes the activity related to PSUs for the three months ended December 31, 2016 : Performance Stock Activity Performance Stock Units Number of Shares (at Target) Weighted Average Grant Date Fair Value Non-vested as of September 30, 2016 — $0.00 Granted 366,849 $8.34 Vested — $0.00 Forfeited — $0.00 Non-vested as of December 31, 2016 366,849 $8.34 As of December 31, 2016 , there was approximately $2.5 million of remaining unamortized stock-based compensation expense, net of estimated forfeitures, associated with PSUs, which will be expensed over a weighted average remaining service period of approximately 2.0 years. The 0.4 million outstanding non-vested PSUs have an aggregate intrinsic value of approximately $3.2 million and a weighted average remaining contractual term of 2.0 years. For the three months ended December 31, 2016 and 2015 , there were no PSUs vested. Of the 0.4 million outstanding non-vested PSUs at December 31, 2016 , approximately 0.3 million are expected to vest and have an aggregate intrinsic value of approximately $3.0 million and a weighted average remaining contractual term of 2.0 years. There were no PSUs granted during the three months ended December 31, 2015 . Stock-based compensation The effect of recording stock-based compensation expense was as follows: Stock-based Compensation Expense - by award type For the three months ended December 31, (in thousands) 2016 2015 Employee stock options $ 11 $ 6 Restricted stock awards and units 354 266 Performance stock units 268 — Employee stock purchase plan 52 55 Outside director fees in common stock 78 36 Total stock-based compensation expense $ 763 $ 363 Stock-based Compensation Expense - by expense type For the three months ended December 31, (in thousands) 2016 2015 Cost of revenue $ 93 $ 69 Selling, general, and administrative 570 188 Research and development 100 106 Total stock-based compensation expense $ 763 $ 363 The stock-based compensation expense above relates to continuing operations. Stock-based compensation within selling, general and administrative expense was higher for three months ended December 31, 2016 due to stock-based compensation expense associated with the grants of PSUs. Included within discontinued operations is $9,000 and $24,000 of stock based compensation expense for the three months ended December 31, 2016 and 2015 , respectively. 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. Since June 2015, all employer contributions are made in cash. Our matching contribution in cash for the three months ended December 31, 2016 and 2015 was approximately $0.1 million . Income (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share: Basic and Diluted Net Income (Loss) Per Share For the three months ended December 31, (in thousands, except per share) 2016 2015 Numerator: Income (loss) from continuing operations $ 1,766 $ (134 ) (Loss) income from discontinued operations (9 ) 1,121 Undistributed earnings allocated to common shareholders for basic and diluted net income per share 1,757 987 Denominator: Denominator for basic net income per share - weighted average shares outstanding 26,279 25,697 Dilutive options outstanding, unvested stock units and ESPP 760 — Denominator for diluted net income per share - adjusted weighted average shares outstanding 27,039 25,697 Net income per basic share: Continuing operations $ 0.07 $ 0.00 Discontinued operations 0.00 0.04 Net income per basic share $ 0.07 $ 0.04 Net income (loss) per diluted share: Continuing operations $ 0.07 $ 0.00 Discontinued operations 0.00 $ 0.04 Net income per diluted share $ 0.07 $ 0.04 Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation 529 858 Average market price of common stock $ 6.88 $ 6.93 For diluted income (loss) per share, the denominator includes all outstanding common shares and all potential dilutive common shares to be issued. For the three months ended December 31, 2016 , we excluded 0.5 million of weighted average outstanding stock options, RSUs and PSUs from the calculation of diluted net income per share because their effect would have been anti-dilutive. The anti-dilutive stock options and unvested stock were excluded from the computation of diluted net income (loss) per share for the three months ended December 31, 2015 due to the Company incurring a net loss for that period. Employee Stock Purchase Plan We maintain an Employee Stock Purchase Plan (“ESPP”) that provides employees an opportunity to purchase common stock through payroll deductions. The ESPP is a 6-month duration plan with new participation periods beginning on February 25 and August 26 of each year. The purchase price is set at 85% of the average high and low market price of our common stock on either the first or last day of the participation period, whichever is lower, and annual contributions are limited to the lower of 10% of an employee's compensation or $25,000 . Future Issuances As of December 31, 2016 , we had common stock reserved for the following future issuances: Future Issuances Number of Common Stock Shares Available for Future Issuances Exercise of outstanding stock options 597,972 Unvested restricted stock units 1,018,196 Unvested performance stock units 366,849 Purchases under the employee stock purchase plan 1,044,678 Issuance of stock-based awards under the Equity Plans 416,358 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 3,561,634

Geographical Information

Geographical Information	3 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Geographical Information	Geographical Information We evaluate our reportable segment pursuant to ASC 280, Segment Reporting. The Company's Chief Executive Officer is the chief operating decision maker and he assesses the performance of the operating segment and allocates resources to the segment based on its business prospects, competitive factors, net revenue, operating results, and other non-GAAP financial ratios. Based on this evaluation, the Company operates as a single reportable segment. Revenue : The following tables set forth revenue by geographic region with revenue assigned to geographic regions based on our customers’ billing address. Revenue by Geographic Region For the three months ended December 31, (in thousands) 2016 2015 United States $ 24,754 $ 13,813 Asia 3,719 6,339 Europe 1,630 2,163 Other 73 175 Total revenue $ 30,176 $ 22,490 Significant Customers : Significant customers are defined as customers representing greater than 10% of our consolidated revenue. Revenue from three of our significant customers represented 74% and 61% of our consolidated revenue for the three months ended December 31, 2016 and 2015 , respectively. Long-lived Assets : Long-lived assets consist of property, plant, and equipment. As of December 31, 2016 and September 30, 2016 , approximately 37% and 38% , respectively, of our long-lived assets were located in the United States. The remaining long-lived assets are primarily located in China.

Recent Accounting Pronounceme19

Recent Accounting Pronouncements (Policies)	3 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Cash and Cash Equivalents	Cash consists primarily of bank deposits or highly liquid short-term investments with a maturity of three months or less at the time of purchase.
Restricted Cash	Restricted cash represents temporarily restricted deposits held as compensating balances against short-term borrowing arrangements.
Fair Value of Financial Instruments	ASC 820”), Fair Value Measurements, establishes a valuation hierarchy for disclosure of the inputs to valuation techniques used to measure fair value. This standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: • Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly, through market corroboration, for substantially the full term of the financial instrument. • Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets or liabilities at fair value. Classification of an asset or liability within this hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs.
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 November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which provides amendments to current guidance to address the classification and presentation of changes in restricted cash or restricted cash equivalents. Specifically, there is no guidance to address how to classify and present changes in restricted cash or restricted cash equivalents that occur when there are transfers between cash, cash equivalents and restricted cash or restricted cash equivalents and when there are direct cash receipts into restricted cash or restricted cash equivalents. The new guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. The new standard will be effective for our fiscal year beginning October 1, 2018 and early adoption is permitted. We are currently evaluating the impact of this accounting standard update on our Consolidated Financial Statements. • In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 introduces targeted amendments intended to simplify the accounting for stock compensation. Specifically, the ASU requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the 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 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. The Company has not yet adopted a transition method nor has it determined the effect of the standard on our ongoing financial reporting.
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 includes 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 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 the ARO.
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.

Discontinued Operations (Tables

Discontinued Operations (Tables)	3 Months Ended
	Dec. 31, 2016
Photovoltaics Business [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Schedule of Discontinued Operations, Balance Sheet and Income Statement	The following table presents the statements of operations for the discontinued operations of the Photovoltaics Business: For the three months ended December 31, (in thousands) 2016 2015 Revenue $ — $ — Cost of revenue — — Gross profit — — Operating expense (income) 3 (787 ) (Loss) income from discontinued operations before income tax expense (3 ) 787 Income tax expense — (9 ) (Loss) income from discontinued operations, net of tax $ (3 ) $ 778
Digital Products Business [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Schedule of Discontinued Operations, Balance Sheet and Income Statement	The following table presents the statements of operations for the discontinued operations of the Digital Products Business: For the three months ended December 31, (in thousands) 2016 2015 Revenue $ — $ — Cost of revenue 1 (49 ) Gross (loss) profit (1 ) 49 Operating expense (income) 5 (298 ) (Loss) income from discontinued operations before income tax expense (6 ) 347 Income tax expense — (4 ) (Loss) income from discontinued operations, net of tax $ (6 ) $ 343

Accounts Receivable (Tables)

Accounts Receivable (Tables)	3 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable	The following table summarizes changes in the allowance for doubtful accounts for the three months ended December 31, 2016 and 2015 . Allowance for Doubtful Accounts (in thousands) For the Three Months Ended December 31, 2016 2015 Balance at beginning of period $ 36 $ 462 Provision adjustment - expense, net of recoveries — 4 Write-offs and other adjustments - additions (deductions) to receivable balances (3 ) (141 ) Balance at end of period $ 33 $ 325 The components of accounts receivable consisted of the following: As of As of (in thousands) December 31, September 30, 2016 Accounts receivable, gross $ 21,062 $ 18,468 Allowance for doubtful accounts (33 ) (36 ) Accounts receivable, net $ 21,029 $ 18,432

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory	The components of inventory consisted of the following: As of As of (in thousands) December 31, September 30, 2016 Raw materials $ 16,515 $ 16,095 Work in-process 6,996 5,687 Finished goods 8,252 5,899 Inventory balance at end of period $ 31,763 $ 27,681 Current portion $ 28,198 $ 24,150 Non-Current portion 3,565 3,531 Inventory balance at end of period $ 31,763 $ 27,681

Property, Plant, and Equipmen23

Property, Plant, and Equipment, net (Tables)	3 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	The components of property, plant, and equipment, net consisted of the following: As of As of (in thousands) December 31, September 30, 2016 Equipment $ 29,908 $ 28,247 Furniture and fixtures 1,109 1,109 Computer hardware and software 2,856 2,860 Leasehold improvements 1,870 1,896 Construction in progress 2,622 1,779 Property, plant, and equipment, gross 38,365 35,891 Accumulated depreciation (24,322 ) (23,678 ) Property, plant, and equipment, net $ 14,043 $ 12,213

Accrued Expenses and Other Cu24

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Dec. 31, 2016
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	The components of accrued expenses and other current liabilities consisted of the following: As of As of (in thousands) December 31, September 30, 2016 Compensation $ 2,858 $ 3,628 Warranty 791 871 Professional fees 984 761 Customer deposits 39 38 Income and other taxes 1,083 944 Severance and restructuring accruals 710 642 Other 866 800 Accrued expenses and other current liabilities $ 7,331 $ 7,684
Schedule of Restructuring and Related Costs	The following table summarizes the changes in the severance accrual account: (in thousands) Severance-related accruals Balance as of September 30, 2016 $ 642 Expense - charged to accrual 172 Payments and accrual adjustments (104 ) Balance as of December 31, 2016 $ 710
Schedule of Product Warranty Accruals	The following table summarizes the changes in our product warranty accrual accounts: Product Warranty Accruals For the three months ended December 31, (in thousands) 2016 2015 Balance at beginning of period $ 871 $ 1,664 Provision for product warranty - expense 88 146 Adjustments and utilization of warranty accrual (168 ) (246 ) Balance at end of period $ 791 $ 1,564

Equity (Tables)

Equity (Tables)	3 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Schedule of Stock Options Activity	The following table summarizes stock option activity under the Equity Plans for the three months ended December 31, 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, 2016 750,338 $16.84 Granted — — Exercised (26,151 ) $3.99 $ 120 Forfeited (1,300 ) $4.11 Expired (124,915 ) $19.91 Outstanding as of December 31, 2016 597,972 $16.79 2.44 $ 1,101 Exercisable as of December 31, 2016 531,911 $18.30 1.67 $ 832 Vested and expected to vest as of December 31, 2016 586,261 $17.03 2.31 $ 1,054 (*) Intrinsic value for stock options represents the “in-the-money” portion or the positive variance between a stock option's exercise price and the underlying stock price. For the three months ended December 31, 2015, the intrinsic value of options exercised was $80,000 .
Schedule of Valuation Assumptions	The fair value of each stock option grant for the three months ended December 31, 2015 , 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 three months ended December 31, 2015 Black-Scholes weighted average assumptions: Expected dividend rate — % Expected stock price volatility rate 61.6 % Risk-free interest rate 1.8 % Expected term (in years) 6.0 Weighted average grant date fair value per share of stock options granted: $ 4.18
Schedule of Restricted Stock Activity	The following table summarizes the activity related to RSUs for the three months ended December 31, 2016 : Restricted Stock Activity Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Non-vested as of September 30, 2016 878,416 $4.25 Granted 145,919 $7.29 Vested (5,206 ) $6.01 Forfeited (933 ) $4.74 Non-vested as of December 31, 2016 1,018,196 $4.67
Schedule of Performance Share Activity	The following table summarizes the activity related to PSUs for the three months ended December 31, 2016 : Performance Stock Activity Performance Stock Units Number of Shares (at Target) Weighted Average Grant Date Fair Value Non-vested as of September 30, 2016 — $0.00 Granted 366,849 $8.34 Vested — $0.00 Forfeited — $0.00 Non-vested as of December 31, 2016 366,849 $8.34
Schedule of Stock-based Compensation Expense - By Award Type	The effect of recording stock-based compensation expense was as follows: Stock-based Compensation Expense - by award type For the three months ended December 31, (in thousands) 2016 2015 Employee stock options $ 11 $ 6 Restricted stock awards and units 354 266 Performance stock units 268 — Employee stock purchase plan 52 55 Outside director fees in common stock 78 36 Total stock-based compensation expense $ 763 $ 363
Schedule Stock-based Compensation Expense - By Expense Type	Stock-based Compensation Expense - by expense type For the three months ended December 31, (in thousands) 2016 2015 Cost of revenue $ 93 $ 69 Selling, general, and administrative 570 188 Research and development 100 106 Total stock-based compensation expense $ 763 $ 363
Schedule of Earnings Per Share, Basic and Diluted	Income (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share: Basic and Diluted Net Income (Loss) Per Share For the three months ended December 31, (in thousands, except per share) 2016 2015 Numerator: Income (loss) from continuing operations $ 1,766 $ (134 ) (Loss) income from discontinued operations (9 ) 1,121 Undistributed earnings allocated to common shareholders for basic and diluted net income per share 1,757 987 Denominator: Denominator for basic net income per share - weighted average shares outstanding 26,279 25,697 Dilutive options outstanding, unvested stock units and ESPP 760 — Denominator for diluted net income per share - adjusted weighted average shares outstanding 27,039 25,697 Net income per basic share: Continuing operations $ 0.07 $ 0.00 Discontinued operations 0.00 0.04 Net income per basic share $ 0.07 $ 0.04 Net income (loss) per diluted share: Continuing operations $ 0.07 $ 0.00 Discontinued operations 0.00 $ 0.04 Net income per diluted share $ 0.07 $ 0.04 Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation 529 858 Average market price of common stock $ 6.88 $ 6.93
Schedule of Common Stock Reserved for Future Issuances	As of December 31, 2016 , we had common stock reserved for the following future issuances: Future Issuances Number of Common Stock Shares Available for Future Issuances Exercise of outstanding stock options 597,972 Unvested restricted stock units 1,018,196 Unvested performance stock units 366,849 Purchases under the employee stock purchase plan 1,044,678 Issuance of stock-based awards under the Equity Plans 416,358 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 3,561,634

Geographical Information (Table

Geographical Information (Tables)	3 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Schedule of Revenue by Geographic Region	The following tables set forth revenue by geographic region with revenue assigned to geographic regions based on our customers’ billing address. Revenue by Geographic Region For the three months ended December 31, (in thousands) 2016 2015 United States $ 24,754 $ 13,813 Asia 3,719 6,339 Europe 1,630 2,163 Other 73 175 Total revenue $ 30,176 $ 22,490

Description of Business (Busine

Description of Business (Business Overview) (Details)	3 Months Ended
	Dec. 31, 2016segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reporting segments	1

Description of Business (Sale o

Description of Business (Sale of Photovoltaics and Digital Products Business) (Details) - Discontinued Operations, Disposed of by Sale [Member] - USD ($) $ in Millions	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		$ 149.9
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

Summary of Significant Accounti

Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Accounting Policies [Abstract]
Asset retirement obligations	$ 1,590	$ 1,573

Discontinued Operations (Narrat

Discontinued Operations (Narrative) (Details) - USD ($)	Dec. 22, 2015	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 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			$ 0	310,000
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
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
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						$ 149,900,000
New Mexico [Member] | Discontinued Operations, Disposed of by Sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Incentive tax credits			$ 0	$ 100,000

Discontinued Operations (Income

Discontinued Operations (Income Statements) (Details) - Discontinued Operations, Disposed of by Sale [Member] - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Photovoltaics Business [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue	$ 0	$ 0
Cost of revenue	0	0
Gross (loss) profit	0	0
Operating expense (income)	3,000	(787,000)
(Loss) income from discontinued operations before income tax expense	(3,000)	787,000
Income tax expense	0	(9,000)
(Loss) income from discontinued operations, net of tax	(3,000)	778,000
Digital Products Business [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue	0	0
Cost of revenue	1,000	(49,000)
Gross (loss) profit	(1,000)	49,000
Operating expense (income)	5,000	(298,000)
(Loss) income from discontinued operations before income tax expense	(6,000)	347,000
Income tax expense	0	(4,000)
(Loss) income from discontinued operations, net of tax	$ (6,000)	$ 343,000

Accounts Receivable (Schedule o

Accounts Receivable (Schedule of Components of Accounts Receivable) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Receivables [Abstract]
Accounts receivable, gross	$ 21,062	$ 18,468
Allowance for doubtful accounts	(33)	(36)
Accounts receivable, net	$ 21,029	$ 18,432

Accounts Receivable (Allowance

Accounts Receivable (Allowance for Doubtful Accounts Rollforward) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of period	$ 36	$ 462
Provision adjustment - expense, net of recoveries	0	4
Write-offs and other adjustments - additions (deductions) to receivable balances	(3)	(141)
Balance at end of period	$ 33	$ 325

Inventory (Schedule of Componen

Inventory (Schedule of Components of Inventory) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 16,515	$ 16,095
Work in-process	6,996	5,687
Finished goods	8,252	5,899
Inventory balance at end of period	31,763	27,681
Current portion	28,198	24,150
Non-Current portion	$ 3,565	$ 3,531

Property, Plant, and Equipmen35

Property, Plant, and Equipment, net (Schedule of Property, Plant, and Equipment) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 38,365	$ 35,891
Accumulated depreciation	(24,322)	(23,678)
Property, plant, and equipment, net	14,043	12,213
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	29,908	28,247
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	2,856	2,860
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	1,870	1,896
Construction in progress [Member]
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 2,622	$ 1,779

Accrued Expenses and Other Cu36

Accrued Expenses and Other Current Liabilities (Schedule of Accrued Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Payables and Accruals [Abstract]
Compensation	$ 2,858	$ 3,628
Warranty	791	871
Professional fees	984	761
Customer deposits	39	38
Income and other taxes	1,083	944
Severance and restructuring accruals	710	642
Other	866	800
Accrued expenses and other current liabilities	$ 7,331	$ 7,684

Accrued Expenses and Other Cu37

Accrued Expenses and Other Current Liabilities (Income and Other Taxes) (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2015
Payables and Accruals [Abstract]
Income tax expense	$ (120)	$ (2)	$ (2)
Income tax expense, discontinued operations	$ 0	$ (13)

Accrued Expenses and Other Cu38

Accrued Expenses and Other Current Liabilities (Severance and Restructuring Accruals) (Narrative) (Details)	Jun. 07, 2016USD ($)	Jun. 02, 2016	Nov. 30, 2016employee	May 31, 2016employee	Dec. 31, 2015USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Sep. 30, 2016USD ($)
Payables and Accruals [Line Items]
Payments to terminate lease agreement							$ 200,000
Gain on lease termination						$ 0	310,000
Number of positions eliminated | employee			5	30
Employee Severance [Member]
Payables and Accruals [Line Items]
Restructuring costs						200,000		$ 300,000
Chief Financial Officer [Member]
Payables and Accruals [Line Items]
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]
Payables and Accruals [Line Items]
Payments to terminate lease agreement					$ 200,000
Gain on lease termination							$ 300,000

Accrued Expenses and Other Cu39

Accrued Expenses and Other Current Liabilities (Schedule of Restructuring and Related Costs) (Details) - Severance-related accruals [Member] $ in Thousands	3 Months Ended
	Dec. 31, 2016USD ($)
Restructuring Reserve [Roll Forward]
Beginning Balance	$ 642
Expense - charged to accrual	172
Payments and accrual adjustments	(104)
Ending Balance	$ 710

Accrued Expenses and Other Cu40

Accrued Expenses and Other Current Liabilities (Schedule of Product Warranty Accruals) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 871	$ 1,664
Provision for product warranty - expense	88	146
Adjustments and utilization of warranty accrual	(168)	(246)
Balance at end of period	$ 791	$ 1,564

Credit Facilities (Narrative) (

Credit Facilities (Narrative) (Details)	Nov. 10, 2015	Feb. 01, 2017USD ($)	Dec. 31, 2016USD ($)letter_of_credit	Dec. 10, 2014USD ($)
London Interbank Offered Rate (LIBOR) [Member] | Seventh Amendment [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.50%
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Long-term line of credit			$ 0
Revolving Credit Facility [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Long-term line of credit		$ 0
Revolving Credit Facility [Member] | Sixth Amendment [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity				$ 15,000,000
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			$ 9,800,000

Income and other Taxes (Narrati

Income and other Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income tax expense	$ (120)	$ (2)	$ (2)
Income tax expense, discontinued operations	$ 0	$ 13
Effective tax rate	(6.40%)	1.50%
Income tax penalties and interest accrued	$ 300			$ 300

Commitments and Contingencies (

Commitments and Contingencies (Narrative) (Details)	Jan. 06, 2017USD ($)	Oct. 01, 2014	Sep. 23, 2014USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)	Mar. 31, 2012USD ($)	Dec. 31, 2016USD ($)building	Dec. 31, 2015USD ($)	Sep. 30, 2016USD ($)	Nov. 30, 2014building
Loss Contingencies [Line Items]
Rent expense							$ 300,000	$ 300,000
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							$ 17,000	15,000
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
Sumitomo Electric Industries, LTD [Member]
Loss Contingencies [Line Items]
Loss contingency, damages sought			$ 47,500,000
Gain on settlement									$ 3,400,000
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
Litigation settlement, amount									$ 2,600,000
Settled Litigation [Member] | Mirasol Class Action [Member]
Loss Contingencies [Line Items]
Provision accrual							$ 200,000
Settled Litigation [Member] | Mirasol Class Action [Member] | Subsequent Event [Member]
Loss Contingencies [Line Items]
Litigation settlement, amount	$ 300,000
Settled Litigation [Member] | Mirasol Wrongful Termination [Member] | Subsequent Event [Member]
Loss Contingencies [Line Items]
Litigation settlement, amount	$ 50,000
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

Equity (Narrative) (Details)

Equity (Narrative) (Details)	Dec. 14, 2016USD ($)shares	Oct. 18, 2016USD ($)shares	Dec. 31, 2016USD ($)plan$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares	Sep. 30, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equity incentive compensation plans maintained by the company | plan			3
Intrinsic value of shares exercised			$ 120,000	$ 80,000
Stock-based compensation expense			763,000	363,000
Cash matching contribution			$ 100,000	$ 100,000
Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation (in shares) | shares			529,000	858,000
Discontinued Operations [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense			$ 9,000	$ 24,000
Employee stock purchase plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock purchase plan (ESPP), employee purchase price percentage			85.00%
Employee stock purchase plan (ESPP), annual employee contribution limit percentage			10.00%
Share-based compensation arrangement by share-based payment award accelerated compensation cost			$ 25,000
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 5 months 5 days
Stock-based compensation expense			$ 11,000	6,000
Restricted Stock Awards [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			3 years
Restricted Stock Awards [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			4 years
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining unamortized stock-based compensation expense			$ 3,100,000
Remaining unamortized stock-based compensation expense, period for recognition			2 years 4 months 24 days
Unvested restricted stock units (in shares) | shares			1,018,196		878,416
Outstanding non-vested RSUs aggregate intrinsic value			$ 8,900,000
Outstanding non-vested RSUs weighted average remaining contractual term			1 year 4 months 8 days
Share-based compensation arrangement by share-based payment award, equity instruments other than options, aggregate intrinsic value, vested			$ 32,000	$ 1,800
Share-based compensation arrangement, by share-based payment award, options, vested and expected to vest, exercisable (in shares) | shares			1,000,000
Share based compensation arrangement, by share based payment award, equity instruments other than options, expected to vest, intrinsic value			$ 8,400,000
Share based compensation arrangement, by share based payment award, equity investments other than options, expected to vest, weighted average contractual term			1 year 3 months 26 days
Granted (in usd per share) | $ / shares			$ 7.29	$ 7.82
Granted (in shares) | shares			145,919
Restricted Stock Units [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) | shares		70,000
Grant date fair value		$ 400,000
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested restricted stock units (in shares) | shares			366,849		0
Share-based compensation arrangement by share-based payment award, equity instruments other than options, aggregate intrinsic value, vested			$ 3,200,000
Share-based compensation arrangement, by share-based payment award, options, vested and expected to vest, exercisable (in shares) | shares			300,000
Share based compensation arrangement, by share based payment award, equity instruments other than options, expected to vest, intrinsic value			$ 3,000,000
Share based compensation arrangement, by share based payment award, equity investments other than options, expected to vest, weighted average contractual term			2 years 7 days
Granted (in usd per share) | $ / shares			$ 8.34
Granted (in shares) | shares	71,669		366,849	0
Grant date fair value	$ 1,000,000
Unamortized stock based compensation			$ 2,500,000
Stock-based compensation expense			$ 268,000	$ 0
Performance Shares [Member] | Chief Financial Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) | shares		195,180
Grant date fair value		$ 1,400,000
Performance Shares [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) | shares		100,000
Grant date fair value		$ 700,000
Performance Shares [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			1 year
Award vesting rights		0.00%
Performance Shares [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights		200.00%

Equity (Schedule of Stock Optio

Equity (Schedule of Stock Options Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Number of Shares
Outstanding, beginning of period (in shares)	750,338
Granted (in shares)	0
Exercised (in shares)	(26,151)
Forfeited (in shares)	(1,300)
Expired (in shares)	(124,915)
Outstanding, end of period (in shares)	597,972
Exercisable (in shares)	531,911
Weighted Average Exercise Price
Outstanding, beginning of period (in usd per share)	$ 16.84
Granted (in usd per share)	0
Exercised (in usd per share)	3.99
Forfeited (in usd per share)	4.11
Expired (in usd per share)	19.91
Outstanding, end of period (in usd per share)	16.79
Exercisable (in usd per share)	$ 18.30
Weighted Average Remaining Contractual Life (in years):
Outstanding	2 years 5 months 9 days
Exercisable	1 year 8 months 1 day
Vested and expected to vest
Number of stock options (in shares)	586,261
Weighted average exercise price (in usd per share)	$ 17.03
Weighted average remaining contractual term	2 years 3 months 22 days
Aggregate Intrinsic Value
Intrinsic value of shares exercised	$ 120	$ 80
Outstanding	1,101
Exercisable	832
Vested and expected to vest	$ 1,054

Equity (Schedule of Valuation A

Equity (Schedule of Valuation Assumptions) (Details)	3 Months Ended
	Dec. 31, 2015$ / shares
Black-Scholes weighted average assumptions:
Expected dividend rate	0.00%
Expected stock price volatility rate	61.60%
Risk-free interest rate	1.80%
Expected term (in years)	6 years
Weighted average grant date fair value per share of stock option granted (in usd per share)	$ 4.18

Equity (Schedule of Restricted

Equity (Schedule of Restricted Stock Activity) (Details) - Restricted Stock Units [Member] - $ / shares	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Number of Shares
Non-vested, beginning balance (in shares)	878,416
Granted (in shares)	145,919
Vested (in shares)	(5,206)
Forfeited (in shares)	(933)
Non-vested, ending balance (in shares)	1,018,196
Weighted Average Grant Date Fair Value
Non-vested, beginning balance (in usd per share)	$ 4.25
Granted (in usd per share)	7.29	$ 7.82
Vested (in usd per share)	6.01
Forfeited (in usd per share)	4.74
Non-vested, ending balance (in usd per share)	$ 4.67

Equity (Schedule of Performance

Equity (Schedule of Performance Stock Activity) (Details) - Performance Shares [Member] - $ / shares	Dec. 14, 2016	Dec. 31, 2016	Dec. 31, 2015
Number of Shares
Non-vested, beginning balance (in shares)		0
Granted (in shares)	71,669	366,849	0
Vested (in shares)		0
Forfeited (in shares)		0
Non-vested, ending balance (in shares)		366,849
Weighted Average Grant Date Fair Value
Non-vested, beginning balance (in usd per share)		$ 0
Granted (in usd per share)		8.34
Vested (in usd per share)		0
Forfeited (in usd per share)		0
Non-vested, ending balance (in usd per share)		$ 8.34

Equity (Schedule of Stock-based

Equity (Schedule of Stock-based Compensation Expense - by Award Type) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 763	$ 363
Employee stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	11	6
Restricted stock awards and units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	354	266
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	268	0
Employee stock purchase plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	52	55
Outside director fees in common stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 78	$ 36

Equity (Schedule of Stock-bas50

Equity (Schedule of Stock-based Compensation Expense - by Expense Category) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 763	$ 363
Cost of revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	93	69
Selling, general, and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	570	188
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 100	$ 106

Equity (Schedule of Earnings pe

Equity (Schedule of Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Numerator:
Income (loss) from continuing operations	$ 1,766	$ (134)
(Loss) income from discontinued operations	(9)	1,121
Net income	$ 1,757	$ 987
Denominator:
Denominator for basic net income (loss) per share - weighted average shares outstanding (in shares)	26,279	25,697
Dilutive options outstanding, unvested stock units and ESPP (in shares)	760	0
Denominator for diluted net income (loss) per share - adjusted weighted average shares outstanding (in shares)	27,039	25,697
Net (loss) income per basic share:
Net income (loss) per basic share, continuing operations, (in usd per share)	$ 0.07	$ 0
Net (loss) income per basic share, discontinued operations (in usd per share)	0	0.04
Net income per basic share (in usd per share)	0.07	0.04
Earnings Per Share, Diluted [Abstract]
Net income (loss) per diluted share, continuing operations (in usd per share)	0.07	0
Net income per diluted share, discontinued operations (in usd per share)	0	0.04
Net income per diluted share (in usd per share)	$ 0.07	$ 0.04
Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation (in shares)	529	858
Average market price of common stock (in dollars per share)	$ 6.88	$ 6.93

Equity (Schedule of Common Stoc

Equity (Schedule of Common Stock Reserved for Future Issuances) (Details) - shares	Dec. 31, 2016	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise of outstanding stock options (in shares)	597,972	750,338
Purchases under the employee stock purchase plan (in shares)	1,044,678
Issuance of stock-based awards under the Equity Plans (in shares)	416,358
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)	3,561,634
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested stock units (in shares)	1,018,196	878,416
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested stock units (in shares)	366,849	0

Geographical Information (Narra

Geographical Information (Narrative) (Details) - customers	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of customers	3	3
Percentage of long-lived assets located in the United States	37.00%		38.00%
Customer Concentration Risk [Member] | Sales Revenue, Segment [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Concentration risk percentage	74.00%	61.00%

Geographical Information (Sched

Geographical Information (Schedule of Revenue by Geographic Region) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Revenue	$ 30,176	$ 22,490
United States [Member]
Segment Reporting Information [Line Items]
Revenue	24,754	13,813
Asia [Member]
Segment Reporting Information [Line Items]
Revenue	3,719	6,339
Europe [Member]
Segment Reporting Information [Line Items]
Revenue	1,630	2,163
Other [Member]
Segment Reporting Information [Line Items]
Revenue	$ 73	$ 175