Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2017 | Jan. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | EMCORE CORP | |
Entity Central Index Key | 808,326 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2017 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 27,199,762 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||
Revenue | $ 24,036 | $ 30,176 |
Cost of revenue | 16,122 | 20,133 |
Gross profit | 7,914 | 10,043 |
Operating expense: | ||
Selling, general, and administrative | 4,819 | 5,578 |
Research and development | 3,800 | 2,199 |
Loss on sale of assets | 107 | 0 |
Total operating expense | 8,726 | 7,777 |
Operating (loss) income | (812) | 2,266 |
Other income (expense): | ||
Interest income, net | 111 | 23 |
Foreign exchange gain (loss) | 286 | (403) |
Total other income (expense) | 397 | (380) |
(Loss) income from continuing operations before income tax benefit (expense) | (415) | 1,886 |
Income tax benefit (expense) | 333 | (120) |
(Loss) income from continuing operations | (82) | 1,766 |
Loss from discontinued operations, net of tax | 0 | (9) |
Net (loss) income | (82) | 1,757 |
Foreign exchange translation adjustment | 253 | (260) |
Comprehensive income | $ 171 | $ 1,497 |
Net (loss) income per basic share: | ||
Continuing operations (in usd per share) | $ 0 | $ 0.07 |
Discontinued operations (in usd per share) | 0 | 0 |
Net income per basic share (in usd per share) | 0 | 0.07 |
Net (loss) income per diluted share: | ||
Continuing operations (in usd per share) | 0 | 0.07 |
Discontinued operations (in usd per share) | 0 | 0 |
Net income per diluted share (in usd per share) | $ 0 | $ 0.07 |
Weighted-average number of basic shares outstanding (in shares) | 27,032 | 26,279 |
Weighted-average number of basic shares outstanding (in shares) | 27,032 | 27,039 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 64,200 | $ 68,333 |
Restricted cash | 33 | 421 |
Accounts receivable, net of allowance of $39 and $22, respectively | 23,130 | 22,265 |
Inventory | 23,401 | 25,139 |
Prepaid expenses and other current assets | 8,461 | 8,527 |
Total current assets | 119,225 | 124,685 |
Property, plant, and equipment, net | 17,157 | 16,635 |
Non-current inventory | 2,510 | 2,686 |
Other non-current assets | 576 | 78 |
Total assets | 139,468 | 144,084 |
Current liabilities: | ||
Accounts payable | 7,414 | 11,818 |
Accrued expenses and other current liabilities | 9,206 | 9,825 |
Total current liabilities | 16,620 | 21,643 |
Asset retirement obligations | 1,655 | 1,638 |
Other long-term liabilities | 42 | 29 |
Total liabilities | 18,317 | 23,310 |
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; 34,062 shares issued and 27,152 shares outstanding as of December 31, 2017; 33,938 shares issued and 27,028 shares outstanding as of September 30, 2017 | 731,112 | 730,906 |
Treasury stock at cost; 6,910 shares | (47,721) | (47,721) |
Accumulated other comprehensive income | 814 | 561 |
Accumulated deficit | (563,054) | (562,972) |
Total shareholders’ equity | 121,151 | 120,774 |
Total liabilities and shareholders’ equity | $ 139,468 | $ 144,084 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts receivable: | ||
Allowance for doubtful accounts | $ 39 | $ 22 |
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 (in usd per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 34,062,000 | 33,938,000 |
Common stock, shares outstanding (in shares) | 27,152,000 | 27,028,000 |
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, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (82) | $ 1,757 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and accretion expense | 1,202 | 758 |
Stock-based compensation expense | 915 | 772 |
Provision adjustments related to doubtful accounts | 17 | 0 |
Provision adjustments related to product warranty | 58 | 88 |
Net loss on disposal of equipment | 107 | 0 |
Other | (132) | 0 |
Total non-cash adjustments | 2,167 | 1,618 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (883) | (2,645) |
Inventory | 2,169 | (4,549) |
Other assets | (277) | 149 |
Accounts payable | (4,322) | 4,824 |
Accrued expenses and other current liabilities | (727) | (495) |
Total change in operating assets and liabilities | (4,040) | (2,716) |
Net cash (used in) provided by operating activities | (1,955) | 659 |
Cash flows from investing activities: | ||
Purchase of equipment | (1,881) | (3,242) |
Proceeds from disposal of property, plant and equipment | 8 | 0 |
Net cash used in investing activities | (1,873) | (3,242) |
Cash flows from financing activities: | ||
Proceeds from stock plans | 16 | 104 |
Tax withholding paid on behalf of employees for stock-based awards | (724) | 0 |
Net cash provided by financing activities | (708) | 104 |
Effect of exchange rate changes on foreign currency | 15 | 352 |
Net decrease in cash, cash equivalents and restricted cash | (4,521) | (2,127) |
Cash, cash equivalents and restricted cash at beginning of period | 68,754 | 64,870 |
Cash, cash equivalents and restricted cash at end of period | 64,233 | 62,743 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid during the period for interest | 16 | 20 |
Cash paid during the period for income taxes | 33 | 2 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Changes in accounts payable related to purchases of equipment | $ (176) | $ (455) |
Description of Business
Description of Business | 3 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Business Overview EMCORE Corporation (referred to herein, together with its subsidiaries, as the “Company,” “we,” “our,” or “EMCORE”) was established in 1984 as a New Jersey corporation. The Company became publicly traded in 1997 and is listed on the Nasdaq stock exchange under the ticker symbol EMKR. EMCORE pioneered the linear fiber optic transmission technology that enabled the world’s first delivery of Cable TV directly on fiber, and today is a leading provider of advanced Mixed-Signal Optics products that enable communications systems and service providers to meet growing demand for increased bandwidth and connectivity. The Mixed-Signal Optics technology at the heart of our broadband communications products is shared with our fiber optic gyros and inertial sensors to provide the aerospace and defense markets with state-of-the-art navigation systems technology. With both analog and digital circuits on multiple chips, or even a single chip, the value of Mixed-Signal device solutions is often far greater than traditional digital applications and requires a specialized expertise held by EMCORE which is unique in the optics industry. We currently have one reporting segment: Fiber Optics. 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, 2017 has been derived from the audited consolidated financial statements as of such date as adjusted for discontinued operations. For a more complete understanding of our business, financial position, operating results, cash flows, risk factors and other matters, please refer to our Annual Report on Form 10-K for the fiscal year ended September 30, 2017. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements and U.S. Tax Reform | 3 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements and U.S. Tax Reform | Recent Accounting Pronouncements and U.S. Tax Reform 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 May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting . ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The new guidance is intended to reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as a modification. Under ASU 2017-09, an entity will not apply modification accounting to a share-based payment award if the award’s fair value, vesting conditions and classification as an equity or liability instrument are the same immediately before and after the change. ASU 2017-09 will be applied prospectively to awards modified on or after the adoption date. The new guidance is effective for annual periods, beginning after December 15, 2017 and interim periods within those annual periods. The Company does not expect the adoption of ASU 2017-09 will have a material impact on the Company’s consolidated financial statements. • I n 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. This update will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The operating lease obligations at December 31, 2017 were approximately $4.1 million . Assuming an average discounted rate of 4% applied to these remaining lease payments, we estimate that the impact to our balance sheet as of October 1, 2019 upon adoption would be within the range of $2.0 million to $3.0 million due to recognition of the right-of-use asset and lease liability related to current operating leases. The Company is continuing to evaluate the effect of this update on its consolidated financial statements and related disclosures. • 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 was effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. The new standard was effective for our fiscal year beginning October 1, 2017, but there was no significant impact on our condensed consolidated financial statements. • In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers which will supersede most current U.S. GAAP guidance on this topic. I n April 2016, the FASB issued ASU No. 2016-10 , R evenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing to clarify two aspects of the guidance within ASU No. 2014-09 on identifying performance obligations and the licensing implementation guidance. Under the new standards, recognition of revenue occurs when the seller satisfies a performance obligation by transferring to the customer promised goods or services in an amount that reflects the consideration the entity expects to receive for those goods or services. The new standard, as amended through December 2016, 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 full retrospective or modified retrospective method. We have established a cross-functional coordinated implementation team to implement ASU 2014-09. We are in the process of identifying and implementing changes to our systems, processes and internal controls to meet the reporting and disclosure requirements. Upon evaluation, we believe that the key revenue streams will be split between product sales and firm fixed price contracts, which comprise the majority of our business. Based upon the evaluation completed to date, the Company believes that the pattern of revenue recognition for these revenue streams will generally be at a point-in-time for product sales and over a period of time for firm fixed price contracts, which is consistent with current guidance. The Company does not believe the adoption of ASU 2014-09 will have a material impact on the Company’s financial statements and related disclosures. As of December 31, 2017 , the Company intends to adopt ASU 2014-09 utilizing a modified retrospective method on October 1, 2018 . U.S. Tax Reform • On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly revises the future ongoing U.S. corporate income tax by, among other things, lowering U. S. corporate income tax rates and implementing a territorial tax system. As the Company has a September 30 fiscal year-end, the lower corporate income tax rate will be phased in, resulting in a U.S. statutory federal rate of approximately 25% for our fiscal year ending September 30, 2018, and 21% for subsequent fiscal years. However, the Tax Act provides for a credit for historical Alternative Minimum Taxes (“AMT”) paid against future taxes. As a result, the Company has taken a tax benefit of $0.5 million in the three months ended December 31, 2017 for historical AMT payments. In addition, the Tax Act eliminates the domestic manufacturing deduction and moves to a territorial system, which also eliminates the ability to credit certain foreign taxes that existed prior to enactment of the Tax Act. For the three months ended December 31, 2017 , the elimination of the manufacturing deduction and credit for certain foreign taxes paid did not result in a significant impact on our financial statements. There are also certain transitional impacts of the Tax Act. As part of the transition to the new territorial tax system, the Tax Act imposes a one-time repatriation tax on deemed repatriation of historical earnings of foreign subsidiaries. In addition, the reduction of the U.S. corporate tax rate will cause us to adjust our U.S. deferred tax assets and liabilities to the lower federal base rate of 21% . Due to historical foreign losses and a full valuation allowance on our deferred tax assets as of September 30, 2017, these transitional impacts did not result in an impact on our financial statements for the three months ended December 31, 2017 . The changes included in the Tax Act are broad and complex. The final transition impacts of the Tax Act may differ from the above estimate, possibly materially, due to, among other things, changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates or changes to estimates the Company has utilized to calculate the transition impacts, including impacts from changes to current year earnings estimates and foreign exchange rates of foreign subsidiaries. The Securities Exchange Commission has issued rules that would allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. We currently anticipate finalizing and recording any resulting adjustments by the end of our current fiscal year ending September 30, 2018. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 3 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalent and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets that sum to the total of the same amounts shown in the unaudited statements of condensed consolidated cash flows: As of As of As of (in thousands) December 31, 2017 September 30, 2017 December 31, 2016 Cash $ 3,769 $ 8,054 $ 2,215 Cash equivalents $ 60,431 $ 60,279 $ 59,966 Restricted cash 33 421 562 Total cash, cash equivalents and restricted cash $ 64,233 68,754 62,743 The Company's restricted cash includes cash balances which are legally or contractually restricted to use. The Company's restricted cash is included in current assets as of December 31, 2017 and 2016 , and September 30, 2017 . |
Fair Value Accounting
Fair Value Accounting | 3 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Accounting | Fair Value Accounting ASC Topic 820 (“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, 2017 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The components of accounts receivable consisted of the following: As of As of (in thousands) December 31, 2017 September 30, 2017 Accounts receivable, gross $ 23,169 $ 22,287 Allowance for doubtful accounts (39 ) (22 ) Accounts receivable, net $ 23,130 $ 22,265 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, 2017 and 2016 . Allowance for Doubtful Accounts (in thousands) For the three months ended December 31, 2017 2016 Balance at beginning of period $ 22 $ 36 Provision adjustment - expense, net of recoveries 17 — Write-offs and other adjustments - deductions to receivable balances — (3 ) Balance at end of period $ 39 $ 33 |
Inventory
Inventory | 3 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The components of inventory consisted of the following: As of As of (in thousands) December 31, 2017 September 30, 2017 Raw materials $ 13,663 $ 15,826 Work in-process 6,015 6,586 Finished goods 6,233 5,413 Inventory balance at end of period $ 25,911 $ 27,825 Current portion $ 23,401 $ 25,139 Non-Current portion $ 2,510 $ 2,686 The non-current inventory balance of $2.5 million and $2.7 million as of December 31, 2017 and September 30, 2017 , 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, 2017 | |
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, 2017 September 30, 2017 Equipment $ 31,622 $ 31,507 Furniture and fixtures 1,109 1,109 Computer hardware and software 2,927 2,974 Leasehold improvements 2,444 2,330 Construction in progress 4,339 4,539 Property, plant, and equipment, gross $ 42,441 42,459 Accumulated depreciation (25,284 ) (25,824 ) Property, plant, and equipment, net $ 17,157 $ 16,635 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Dec. 31, 2017 | |
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, 2017 September 30, 2017 Compensation $ 2,537 $ 3,904 Warranty 713 684 Professional fees 395 653 Customer deposits 16 20 Income and other taxes 4,309 2,920 Severance and restructuring accruals 488 628 Other 748 1,016 Accrued expenses and other current liabilities $ 9,206 $ 9,825 Compensation : Compensation is primarily comprised of accrued employee salaries, taxes and benefits. Income and other taxes : For the three months ended December 31, 2017 , the Company recorded approximately $0.3 million of income tax benefit from continuing operations and $0 of income tax benefit within income from discontinued operations. For the three months ended December 31, 2016 , the Company recorded $120,000 of income tax expense from continuing operations income and $0 of income tax expense within income from discontinued operations. The income tax benefit (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. Income and other taxes also includes foreign income and value added taxes. Severance and restructuring accruals : In an effort to better align our current and future business operations, in November 2016 , the Company announced a 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. In March 2017 , the Company announced an additional workforce reduction of approximately 14 individuals and recorded a charge of $0.1 million in the fiscal year ended September 30, 2017 related to the outsourcing of our wafer fabrication lab. During the fiscal year ended September 30, 2017 , the Company recorded an additional charge of $0.4 million for six additional individuals related to the March 2017 workforce reduction. Also, in March 2017, in connection with our opening of a new manufacturing facility in China to reduce costs and improve efficiency later in fiscal year 2017, we accrued for a workforce reduction of approximately 265 individuals and recorded a charge of $0.5 million in the fiscal year ended September 30, 2017 . During the fiscal year ended September 30, 2017 , the Company recorded an additional charge of $0.4 million for the workforce reduction of 72 additional individuals related to the opening of our new manufacturing facility in China. In September 2017 , the Company announced it would be closing its Ivyland, Pennsylvania location during fiscal year 2018 and reducing its workforce by approximately 11 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, 2017 . Our severance and restructuring-related accruals specifically relate to the separation agreements and reductions 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 statements 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, 2017 $ 628 Expense - charged to accrual 41 Payments and accrual adjustments (181 ) Balance as of December 31, 2017 $ 488 Warranty: The following table summarizes the changes in our product warranty accrual accounts: Product Warranty Accruals For the three months ended December 31, (in thousands) 2017 2016 Balance at beginning of period $ 684 $ 871 Provision for product warranty - expense 58 88 Adjustments and utilization of warranty accrual (29 ) (168 ) Balance at end of period $ 713 $ 791 |
Credit Facilities
Credit Facilities | 3 Months Ended |
Dec. 31, 2017 | |
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. 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 . On July 27, 2017 , we entered into a Ninth Amendment of the Credit Facility which adjusted the interest rate to LIBOR plus 1.75% . The Credit Facility currently provides us with a revolving credit line of up to $15.0 million , subject to a borrowing base formula, that can be used for working capital requirements, letters of credit, and other general corporate purposes. As of December 31, 2017 , there were no amounts outstanding under this Credit Facility and the Company was in compliance with all financial covenants. Also, as of December 31, 2017 , the Credit Facility had approximately $0.5 million reserved for one outstanding stand-by letter of credit and $9.1 million available for borrowing. As of January 31, 2018 , there was no outstanding balance under this Credit Facility and $0.5 million reserved for one outstanding stand-by letter of credit. |
Income and other Taxes
Income and other Taxes | 3 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income and other Taxes | Income and other Taxes For the three months ended December 31, 2017 and 2016 , the Company recorded income tax benefit (expense) from continuing operations of approximately $0.3 million and $(0.1) million , respectively. For the three months ended December 31, 2017 and 2016 , the Company recorded no income tax benefit from discontinued operations. Income tax benefit for the three months ended December 31, 2017 is primarily comprised of the effect of the Tax Act which eliminates AMT and will result in a refund to the Company of amounts paid in prior fiscal years. 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, 2017 and 2016 , the effective tax rate on continuing operations was (80.2)% and 6.4% , respectively. The higher tax rate for the three months ended December 31, 2017 was primarily due to the effect of the Tax Act, which resulted in a credit to the Company on future tax payments for past AMT amounts paid. The lower tax rate for the three months ended December 31, 2016 compared to the current period 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 income taxes on non-U.S. subsidiaries' undistributed earnings as of December 31, 2017 because we plan to indefinitely reinvest the unremitted earnings of our non-U.S. subsidiaries and all of our non-U.S. subsidiaries historically have negative earnings and profits. All deferred tax assets have a full valuation allowance at December 31, 2017 . 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, 2017 and 2016 , there were no material increases or decreases in unrecognized tax benefits. As of December 31, 2017 and September 30, 2017 , we had approximately $0.4 million and $0.3 million , respectively, of interest and penalties accrued as tax liabilities on our balance sheet. Interest that is accrued on tax liabilities is recorded within interest expense on the income statement. 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. On September 26, 2017, the Company extended the final expiration date of the rights contained therein from October 3, 2017 to October 3, 2018 (subject to earlier expiration as described in the Rights Plan). The Company has submitted the extension of the Rights Plan to shareholders for approval at the Company's 2018 annual meeting of shareholders, which is scheduled to be held on March 16, 2018. 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, 2017 | |
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 $0.3 million for the three months ended December 31, 2017 and 2016 . There are no off-balance sheet arrangements other than our operating leases. Asset Retirement Obligation : We have known conditional Asset Retirement Obligations (“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, 2017 and 2016 . Accretion expense of $17,000 was recorded during the three months ended December 31, 2017 and 2016 . 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 September 2017, a new lease for four of the six buildings was signed, which was effective on October 1, 2017 . The new lease extends the terms of the lease for three years plus a three year option to extend the lease through September 2023. In connection with the lease agreement, the Company has recorded an ARO liability at December 31, 2017 and September 30, 2017 of $1.7 million and $1.6 million , respectively. 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. 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. 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 “Court”). 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 class action settlement of $0.3 million with regards to all outstanding claims. On January 24, 2018 , the Court granted final approval of the formal settlement agreement entered into between the parties and ordered the parties to prepare and file a proposed judgment by February 7, 2018 . As of December 31, 2017 , the $0.3 million settlement remains 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 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 paid as of September 30, 2017 . |
Equity
Equity | 3 Months Ended |
Dec. 31, 2017 | |
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, 2017 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (*) (in thousands) Outstanding as of September 30, 2017 326,798 $19.54 Granted — — Exercised (3,479 ) $4.50 $ 13 Forfeited (780 ) $4.22 Expired (12,941 ) $27.59 Outstanding as of December 31, 2017 309,598 $19.41 1.70 $ 143 Exercisable as of December 31, 2017 267,946 $21.71 0.76 $ 67 Vested and expected to vest as of December 31, 2017 309,598 $19.41 1.70 $ 143 (*) 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, 2016 , the intrinsic value of options exercised was $0.1 million . As of December 31, 2017 , there was approximately $0.1 million of unrecognized stock-based compensation expense related to non-vested stock options granted under the Equity Plans which is expected to be recognized over an estimated weighted average life of 2.6 years. Valuation Assumptions There were no stock option grants for the three months ended December 31, 2017 and 2016 . Time-Based Restricted Stock Time-based restricted stock units (“RSUs”) and restricted stock awards (“RSAs”) 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. RSAs are considered issued and outstanding on the grant date and are subject to forfeiture if specified vesting conditions are not satisfied. The following table summarizes the activity related to RSUs and RSAs subject to time-based vesting requirements for the three months ended December 31, 2017 : Restricted Stock Activity Restricted Stock Units Restricted Stock Awards Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Non-vested as of September 30, 2017 778,084 $5.91 8,154 $8.20 Granted 224,600 $6.73 — $0.00 Vested (40,095 ) $7.09 — $0.00 Forfeited (7,580 ) $4.02 — $0.00 Non-vested as of December 31, 2017 955,009 $6.07 8,154 $8.20 As of December 31, 2017 , there was approximately $4.4 million of remaining unamortized stock-based compensation expense associated with RSUs, which will be expensed over a weighted average remaining service period of approximately 2.5 years. The 1.0 million outstanding non-vested and expected to vest RSUs have an aggregate intrinsic value of approximately $6.2 million and a weighted average remaining contractual term of 1.5 years. For the three months ended December 31, 2017 and 2016 , the intrinsic value of RSUs vested was approximately $0.3 million and $32,000 , respectively. For the three months ended December 31, 2016 , the weighted average grant date fair value of RSUs granted was $7.29 . As of December 31, 2017 , there was approximately $0.1 million of remaining unamortized stock-based compensation expense associated with RSAs, which will be expensed over a weighted average remaining service period of approximately 2.8 years . On December 28, 2017 , the Company granted our CEO, Jeffrey Rittichier, our Senior Vice President of Engineering, Albert Lu, and our Vice President of Sales, David Wojciechowski, 40,000 , 14,000 and 10,000 RSUs with a grant date fair value of $0.3 million , $0.1 million and $0.1 million , respectively, that will vest in 4 equal annual installments beginning on December 28, 2018 . Performance Stock Performance based restricted stock units (“PSUs”) and performance based shares of restricted stock (“PRSAs”) granted to employees under the 2012 Plan typically vest over 1 to 3 years and are subject to forfeiture in whole, if employment terminates, or in whole or in part, if specified vesting conditions are not satisfied, in each case prior to vesting. PSUs are not considered issued or outstanding common stock until they vest. PRSAs are considered issued and outstanding on the grant date (at 200% of the target number of shares) and are subject to forfeiture if specified vesting conditions are not satisfied. PSUs and PRSAs 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. The following table summarizes the activity related to PSUs and PRSAs for the three months ended December 31, 2017 : Performance Stock Activity Performance Stock Units Performance Stock Awards Number of Shares (at Target) Weighted Average Grant Date Fair Value Number of Shares (at Target) Weighted Average Grant Date Fair Value Non-vested as of September 30, 2017 328,708 $8.36 33,333 $12.25 Granted 240,164 $7.62 — $0.00 Vested (166,058 ) $6.86 — $0.00 Non-vested as of December 31, 2017 402,814 $8.54 33,333 $12.25 As of December 31, 2017 , there was approximately $2.5 million of remaining unamortized stock-based compensation expense associated with PSUs, which will be expensed over a weighted average remaining service period of approximately 2.1 years. The 0.4 million outstanding non-vested and expected to vest PSUs have an aggregate intrinsic value of approximately $2.6 million and a weighted average remaining contractual term of 2.1 years. For the three months ended December 31, 2017 , the intrinsic value of PSUs vested was approximately $1.4 million . As of December 31, 2017 , there was approximately $0.4 million of remaining unamortized stock-based compensation expense associated with PRSAs, which will be expensed over a weighted average remaining service period of approximately 1.8 years . On December 28, 2017 , the Company granted Messrs. Rittichier, Lu and Wojciechowski, 40,000 , 14,000 and 10,000 PSUs with a grant date fair value of $0.3 million , $0.1 million and $0.1 million , respectively. 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 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 the target PSUs will vest, if at all, on December 28, 2020 . On December 28, 2017 , in addition to the PSUs granted to Messrs. Rittichier, Lu and Wojciechowski, the Company granted 108,500 target PSUs with a grant date fair value of $0.9 million to certain key non-executive 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 granted will vest, if at all, on December 28, 2020 . 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) 2017 2016 Employee stock options $ 10 $ 11 Restricted stock units and awards 451 354 Performance stock units and awards 289 268 Employee stock purchase plan 86 52 Outside director fees in common stock 79 78 Total stock-based compensation expense $ 915 $ 763 Stock-based Compensation Expense - by expense type For the three months ended December 31, (in thousands) 2017 2016 Cost of revenue $ 139 $ 93 Selling, general, and administrative 638 570 Research and development 138 100 Total stock-based compensation expense $ 915 $ 763 The stock-based compensation expense above relates to continuing operations. Included within discontinued operations is $0 and $9,000 of stock based compensation expense for the three months ended December 31, 2017 and 2016 , 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, 2017 and 2016 was approximately $0.1 million . Income (Loss) Per Share The following table sets forth the computation of basic and diluted net (loss) income per share: Basic and Diluted Net (Loss) Income Per Share For the three months ended December 31, (in thousands, except per share) 2017 2016 Numerator: (Loss) income from continuing operations $ (82 ) $ 1,766 Loss from discontinued operations — (9 ) Undistributed earnings allocated to common shareholders for basic and diluted net income per share (82 ) 1,757 Denominator: Denominator for basic net income per share - weighted average shares outstanding 27,032 26,279 Dilutive options outstanding, unvested stock units, unvested stock awards and ESPP — 760 Denominator for diluted net income per share - adjusted weighted average shares outstanding 27,032 27,039 Net (loss) income per basic share: Continuing operations $ (0.00 ) $ 0.07 Discontinued operations 0.00 (0.00 ) Net (loss) income per basic share $ (0.00 ) $ 0.07 Net (loss) income per diluted share: Continuing operations $ (0.00 ) $ 0.07 Discontinued operations 0.00 0.00 Net (loss) income per diluted share $ (0.00 ) $ 0.07 Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation 911 529 Average market price of common stock $ 7.50 $ 6.88 For diluted (loss) income per share, the denominator includes all outstanding common shares and all potential dilutive common shares to be issued. The anti-dilutive stock options and unvested stock were excluded from the computation of diluted net loss per share for the three months ended December 31, 2017 due to the Company incurring a net loss for the period. 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. 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 trading 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, 2017 , 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 309,598 Unvested restricted stock units 955,009 Unvested performance stock units 805,628 Purchases under the employee stock purchase plan 911,071 Issuance of stock-based awards under the Equity Plans 1,882,779 Purchases under the officer and director share purchase plan 88,741 Total reserved 4,952,826 |
Geographical Information
Geographical Information | 3 Months Ended |
Dec. 31, 2017 | |
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-U.S. 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) 2017 2016 United States $ 20,079 $ 24,754 Asia 2,657 3,719 Europe 1,227 1,630 Other 73 73 Total revenue $ 24,036 $ 30,176 Significant Customers : Significant customers are defined as customers representing greater than 10% of our consolidated revenue. Revenue from two and three of our significant customers represented 63% and 74% of our consolidated revenue for the three months ended December 31, 2017 and 2016 , respectively. Long-lived Assets : Long-lived assets consist of property, plant, and equipment. As of December 31, 2017 and September 30, 2017 , approximately 48% and 46% , 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 and U.S. Tax Reform (Policies) | 3 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
New 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 May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting . ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The new guidance is intended to reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as a modification. Under ASU 2017-09, an entity will not apply modification accounting to a share-based payment award if the award’s fair value, vesting conditions and classification as an equity or liability instrument are the same immediately before and after the change. ASU 2017-09 will be applied prospectively to awards modified on or after the adoption date. The new guidance is effective for annual periods, beginning after December 15, 2017 and interim periods within those annual periods. The Company does not expect the adoption of ASU 2017-09 will have a material impact on the Company’s consolidated financial statements. • I n 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. This update will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The operating lease obligations at December 31, 2017 were approximately $4.1 million . Assuming an average discounted rate of 4% applied to these remaining lease payments, we estimate that the impact to our balance sheet as of October 1, 2019 upon adoption would be within the range of $2.0 million to $3.0 million due to recognition of the right-of-use asset and lease liability related to current operating leases. The Company is continuing to evaluate the effect of this update on its consolidated financial statements and related disclosures. • 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 was effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. The new standard was effective for our fiscal year beginning October 1, 2017, but there was no significant impact on our condensed consolidated financial statements. • In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers which will supersede most current U.S. GAAP guidance on this topic. I n April 2016, the FASB issued ASU No. 2016-10 , R evenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing to clarify two aspects of the guidance within ASU No. 2014-09 on identifying performance obligations and the licensing implementation guidance. Under the new standards, recognition of revenue occurs when the seller satisfies a performance obligation by transferring to the customer promised goods or services in an amount that reflects the consideration the entity expects to receive for those goods or services. The new standard, as amended through December 2016, 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 full retrospective or modified retrospective method. We have established a cross-functional coordinated implementation team to implement ASU 2014-09. We are in the process of identifying and implementing changes to our systems, processes and internal controls to meet the reporting and disclosure requirements. Upon evaluation, we believe that the key revenue streams will be split between product sales and firm fixed price contracts, which comprise the majority of our business. Based upon the evaluation completed to date, the Company believes that the pattern of revenue recognition for these revenue streams will generally be at a point-in-time for product sales and over a period of time for firm fixed price contracts, which is consistent with current guidance. The Company does not believe the adoption of ASU 2014-09 will have a material impact on the Company’s financial statements and related disclosures. As of December 31, 2017 , the Company intends to adopt ASU 2014-09 utilizing a modified retrospective method on October 1, 2018 . |
Fair Value of Financial Instruments | ASC Topic 820 (“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 and Cash Equivalents, Unrestricted | 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. |
Cash and Cash Equivalents, Restricted | Restricted cash represents temporarily restricted deposits held as compensating balances against short-term borrowing arrangements. |
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 Restructurings | Expense related to severance and restructuring accruals is included in selling, general, and administrative expense on our statements of operations and comprehensive income. |
Asset Retirement Obligation | Asset Retirement Obligation : We have known conditional Asset Retirement Obligations (“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. |
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-U.S. GAAP financial ratios. Based on this evaluation, the Company operates as a single reportable segment. |
Cash, Cash Equivalents and Re20
Cash, Cash Equivalents and Restricted Cash (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets that sum to the total of the same amounts shown in the unaudited statements of condensed consolidated cash flows: As of As of As of (in thousands) December 31, 2017 September 30, 2017 December 31, 2016 Cash $ 3,769 $ 8,054 $ 2,215 Cash equivalents $ 60,431 $ 60,279 $ 59,966 Restricted cash 33 421 562 Total cash, cash equivalents and restricted cash $ 64,233 68,754 62,743 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The components of accounts receivable consisted of the following: As of As of (in thousands) December 31, 2017 September 30, 2017 Accounts receivable, gross $ 23,169 $ 22,287 Allowance for doubtful accounts (39 ) (22 ) Accounts receivable, net $ 23,130 $ 22,265 The following table summarizes changes in the allowance for doubtful accounts for the three months ended December 31, 2017 and 2016 . Allowance for Doubtful Accounts (in thousands) For the three months ended December 31, 2017 2016 Balance at beginning of period $ 22 $ 36 Provision adjustment - expense, net of recoveries 17 — Write-offs and other adjustments - deductions to receivable balances — (3 ) Balance at end of period $ 39 $ 33 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventory consisted of the following: As of As of (in thousands) December 31, 2017 September 30, 2017 Raw materials $ 13,663 $ 15,826 Work in-process 6,015 6,586 Finished goods 6,233 5,413 Inventory balance at end of period $ 25,911 $ 27,825 Current portion $ 23,401 $ 25,139 Non-Current portion $ 2,510 $ 2,686 |
Property, Plant, and Equipmen23
Property, Plant, and Equipment, net (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
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, 2017 September 30, 2017 Equipment $ 31,622 $ 31,507 Furniture and fixtures 1,109 1,109 Computer hardware and software 2,927 2,974 Leasehold improvements 2,444 2,330 Construction in progress 4,339 4,539 Property, plant, and equipment, gross $ 42,441 42,459 Accumulated depreciation (25,284 ) (25,824 ) Property, plant, and equipment, net $ 17,157 $ 16,635 |
Accrued Expenses and Other Cu24
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
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, 2017 September 30, 2017 Compensation $ 2,537 $ 3,904 Warranty 713 684 Professional fees 395 653 Customer deposits 16 20 Income and other taxes 4,309 2,920 Severance and restructuring accruals 488 628 Other 748 1,016 Accrued expenses and other current liabilities $ 9,206 $ 9,825 |
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, 2017 $ 628 Expense - charged to accrual 41 Payments and accrual adjustments (181 ) Balance as of December 31, 2017 $ 488 |
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) 2017 2016 Balance at beginning of period $ 684 $ 871 Provision for product warranty - expense 58 88 Adjustments and utilization of warranty accrual (29 ) (168 ) Balance at end of period $ 713 $ 791 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
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, 2017 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (*) (in thousands) Outstanding as of September 30, 2017 326,798 $19.54 Granted — — Exercised (3,479 ) $4.50 $ 13 Forfeited (780 ) $4.22 Expired (12,941 ) $27.59 Outstanding as of December 31, 2017 309,598 $19.41 1.70 $ 143 Exercisable as of December 31, 2017 267,946 $21.71 0.76 $ 67 Vested and expected to vest as of December 31, 2017 309,598 $19.41 1.70 $ 143 (*) 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, 2016 , the intrinsic value of options exercised was $0.1 million . |
Schedule of Restricted Stock Activity | The following table summarizes the activity related to RSUs and RSAs subject to time-based vesting requirements for the three months ended December 31, 2017 : Restricted Stock Activity Restricted Stock Units Restricted Stock Awards Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Non-vested as of September 30, 2017 778,084 $5.91 8,154 $8.20 Granted 224,600 $6.73 — $0.00 Vested (40,095 ) $7.09 — $0.00 Forfeited (7,580 ) $4.02 — $0.00 Non-vested as of December 31, 2017 955,009 $6.07 8,154 $8.20 |
Schedule of Performance Share Activity | The following table summarizes the activity related to PSUs and PRSAs for the three months ended December 31, 2017 : Performance Stock Activity Performance Stock Units Performance Stock Awards Number of Shares (at Target) Weighted Average Grant Date Fair Value Number of Shares (at Target) Weighted Average Grant Date Fair Value Non-vested as of September 30, 2017 328,708 $8.36 33,333 $12.25 Granted 240,164 $7.62 — $0.00 Vested (166,058 ) $6.86 — $0.00 Non-vested as of December 31, 2017 402,814 $8.54 33,333 $12.25 |
Schedule of Stock-based Compensation Expense - By Award Type | The effect of recording stock-based compensation expense was as follows: Stock-based Compensation Expense - by award type For the three months ended December 31, (in thousands) 2017 2016 Employee stock options $ 10 $ 11 Restricted stock units and awards 451 354 Performance stock units and awards 289 268 Employee stock purchase plan 86 52 Outside director fees in common stock 79 78 Total stock-based compensation expense $ 915 $ 763 |
Schedule of Stock-based Compensation Expense - By Expense Type | Stock-based Compensation Expense - by expense type For the three months ended December 31, (in thousands) 2017 2016 Cost of revenue $ 139 $ 93 Selling, general, and administrative 638 570 Research and development 138 100 Total stock-based compensation expense $ 915 $ 763 |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net (loss) income per share: Basic and Diluted Net (Loss) Income Per Share For the three months ended December 31, (in thousands, except per share) 2017 2016 Numerator: (Loss) income from continuing operations $ (82 ) $ 1,766 Loss from discontinued operations — (9 ) Undistributed earnings allocated to common shareholders for basic and diluted net income per share (82 ) 1,757 Denominator: Denominator for basic net income per share - weighted average shares outstanding 27,032 26,279 Dilutive options outstanding, unvested stock units, unvested stock awards and ESPP — 760 Denominator for diluted net income per share - adjusted weighted average shares outstanding 27,032 27,039 Net (loss) income per basic share: Continuing operations $ (0.00 ) $ 0.07 Discontinued operations 0.00 (0.00 ) Net (loss) income per basic share $ (0.00 ) $ 0.07 Net (loss) income per diluted share: Continuing operations $ (0.00 ) $ 0.07 Discontinued operations 0.00 0.00 Net (loss) income per diluted share $ (0.00 ) $ 0.07 Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation 911 529 Average market price of common stock $ 7.50 $ 6.88 |
Schedule of Common Stock Reserved for Future Issuances | As of December 31, 2017 , 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 309,598 Unvested restricted stock units 955,009 Unvested performance stock units 805,628 Purchases under the employee stock purchase plan 911,071 Issuance of stock-based awards under the Equity Plans 1,882,779 Purchases under the officer and director share purchase plan 88,741 Total reserved 4,952,826 |
Geographical Information (Table
Geographical Information (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
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) 2017 2016 United States $ 20,079 $ 24,754 Asia 2,657 3,719 Europe 1,227 1,630 Other 73 73 Total revenue $ 24,036 $ 30,176 |
Description of Business (Busine
Description of Business (Business Overview) (Details) | 3 Months Ended |
Dec. 31, 2017segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reporting segments | 1 |
Recent Accounting Pronounceme28
Recent Accounting Pronouncements and U.S. Tax Reform (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Sep. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease obligations | $ 4.1 | |
Average discount rate, remaining rental payments | 4.00% | |
Tax benefit, Tax Cuts and Jobs Act | $ 0.5 | |
Minimum [Member] | Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative adjustment for adoption of accounting standard | 2 | |
Maximum [Member] | Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative adjustment for adoption of accounting standard | $ 3 | |
Scenario, Forecast [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
U.S. Statutory Federal Rate | 25.00% |
(Cash, Cash Equivalents and Res
(Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Cash and Cash Equivalents [Abstract] | ||||
Cash | $ 3,769 | $ 8,054 | $ 2,215 | |
Cash equivalents | 60,431 | 60,279 | 59,966 | |
Restricted cash | 33 | 421 | 562 | |
Total cash, cash equivalents and restricted cash | $ 64,233 | $ 68,754 | $ 62,743 | $ 64,870 |
Accounts Receivable (Schedule o
Accounts Receivable (Schedule of Components of Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | |||
Accounts receivable, gross | $ 23,169 | $ 22,287 | |
Allowance for doubtful accounts | (39) | (22) | $ (22) |
Accounts receivable, net | $ 23,130 | $ 22,265 |
Accounts Receivable (Allowance
Accounts Receivable (Allowance for Doubtful Accounts Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Balance at beginning of period | $ 22 | $ 36 |
Provision adjustment - expense, net of recoveries | 17 | 0 |
Write-offs and other adjustments - deductions to receivable balances | 0 | (3) |
Balance at end of period | $ 39 | $ 33 |
Inventory (Schedule of Componen
Inventory (Schedule of Components of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 13,663 | $ 15,826 |
Work in-process | 6,015 | 6,586 |
Finished goods | 6,233 | 5,413 |
Inventory balance at end of period | 25,911 | 27,825 |
Current portion | 23,401 | 25,139 |
Non-Current portion | $ 2,510 | $ 2,686 |
Property, Plant, and Equipmen33
Property, Plant, and Equipment, net (Schedule of Property, Plant, and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 42,441 | $ 42,459 |
Accumulated depreciation | (25,284) | (25,824) |
Property, plant, and equipment, net | 17,157 | 16,635 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 31,622 | 31,507 |
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 | 2,927 | 2,974 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 2,444 | 2,330 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 4,339 | $ 4,539 |
Accrued Expenses and Other Cu34
Accrued Expenses and Other Current Liabilities (Schedule of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Payables and Accruals [Abstract] | ||
Compensation | $ 2,537 | $ 3,904 |
Warranty | 713 | 684 |
Professional fees | 395 | 653 |
Customer deposits | 16 | 20 |
Income and other taxes | 4,309 | 2,920 |
Severance and restructuring accruals | 488 | 628 |
Other | 748 | 1,016 |
Accrued expenses and other current liabilities | $ 9,206 | $ 9,825 |
Accrued Expenses and Other Cu35
Accrued Expenses and Other Current Liabilities (Income and Other Taxes) (Narrative) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income tax benefit (expense) | $ 333,000 | $ (120,000) |
Photovoltaics Business [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income tax expense | $ 0 | $ 0 |
Accrued Expenses and Other Cu36
Accrued Expenses and Other Current Liabilities (Severance and Restructuring Accruals) (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017employee | Nov. 30, 2016employee | Dec. 31, 2016USD ($) | Sep. 30, 2018employee | Sep. 30, 2017USD ($) | |
Employee Severance [Member] | |||||
Payables and Accruals [Line Items] | |||||
Restructuring costs | $ | $ 0.4 | ||||
Satellite Communications Assembly Operations [Member] | Employee Severance [Member] | |||||
Payables and Accruals [Line Items] | |||||
Number of positions eliminated | employee | 5 | ||||
Restructuring costs | $ | $ 0.2 | ||||
Ivyland, Pennsylvania Location Closure [Member] | Employee Severance [Member] | |||||
Payables and Accruals [Line Items] | |||||
Restructuring costs | $ | 0.3 | ||||
Water Fabrication Lab [Member] | |||||
Payables and Accruals [Line Items] | |||||
Number of positions eliminated | employee | 14 | ||||
Water Fabrication Lab [Member] | Employee Severance [Member] | |||||
Payables and Accruals [Line Items] | |||||
Number of positions eliminated | employee | 72 | ||||
Restructuring costs | $ | 0.1 | ||||
Workforce Reduction [Member] | Employee Severance [Member] | |||||
Payables and Accruals [Line Items] | |||||
Number of positions eliminated | employee | 6 | ||||
Restructuring costs | $ | 0.4 | ||||
New Manufacturing Facility in China [Member] | Employee Severance [Member] | |||||
Payables and Accruals [Line Items] | |||||
Number of positions eliminated | employee | 265 | ||||
Restructuring costs | $ | $ 0.5 | ||||
Scenario, Forecast [Member] | Ivyland, Pennsylvania Location Closure [Member] | Employee Severance [Member] | |||||
Payables and Accruals [Line Items] | |||||
Number of positions eliminated | employee | 11 |
Accrued Expenses and Other Cu37
Accrued Expenses and Other Current Liabilities (Schedule of Restructuring and Related Costs) (Details) - Severance-related accruals [Member] $ in Thousands | 3 Months Ended |
Dec. 31, 2017USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | $ 628 |
Expense - charged to accrual | 41 |
Payments and accrual adjustments | (181) |
Ending Balance | $ 488 |
Accrued Expenses and Other Cu38
Accrued Expenses and Other Current Liabilities (Schedule of Product Warranty Accruals) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 684 | $ 871 |
Provision for product warranty - expense | 58 | 88 |
Adjustments and utilization of warranty accrual | (29) | (168) |
Balance at end of period | $ 713 | $ 791 |
Credit Facilities (Narrative) (
Credit Facilities (Narrative) (Details) - Revolving Credit Facility [Member] | Jul. 27, 2017 | Jan. 31, 2018USD ($)letter_of_credit | Dec. 31, 2017USD ($) | Nov. 10, 2015USD ($) |
Line of Credit Facility [Line Items] | ||||
Long-term line of credit | $ 0 | |||
Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Long-term line of credit | $ 0 | |||
London Interbank Offered Rate (LIBOR) [Member] | Seventh Amendment [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Sixth Amendment [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | |||
LIBOR Rate Loan [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Remaining borrowing capacity | $ 9,100,000 | |||
LIBOR Rate Loan [Member] | Subsequent Event [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 |
Income and other Taxes (Narrati
Income and other Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 333,000 | $ (120,000) | |
Income tax (expense) benefit, discontinued operations | $ 0 | ||
Effective tax rate | (80.20%) | (6.40%) | |
Income tax penalties and interest accrued | $ 400,000 | $ 300,000 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Thousands | Jan. 06, 2017USD ($) | Dec. 31, 2017USD ($)building | Dec. 31, 2016USD ($) | Sep. 30, 2017USD ($)building |
Loss Contingencies [Line Items] | ||||
Rent expense | $ 300 | $ 300 | ||
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 | 17 | ||
Settled Litigation [Member] | Mirasol Class Action [Member] | ||||
Loss Contingencies [Line Items] | ||||
Litigation settlement, awarded to other party | $ 300 | |||
Settlement agreement | $ 300 | |||
Provision accrual | $ 200 | |||
Settled Litigation [Member] | Mirasol Wrongful Termination [Member] | ||||
Loss Contingencies [Line Items] | ||||
Litigation settlement, awarded to other party | $ 50 | |||
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 (in years) | 3 years | |||
Operating lease, term extension, option to extend (in years) | 3 years | |||
Property in Alhambra, California [Member] | ||||
Loss Contingencies [Line Items] | ||||
Asset retirement obligation | $ 1,700 | $ 1,600 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) | Dec. 28, 2017USD ($)shares | Dec. 31, 2017USD ($)plan$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Sep. 30, 2017shares |
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 | $ 13,000 | $ 100,000 | ||
Stock-based compensation expense | $ 915,000 | 763,000 | ||
Cash matching contribution | $ 100,000 | |||
Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation (in shares) | shares | 911,000 | 529,000 | ||
Granted (in shares) | shares | 0 | 0 | ||
Discontinued Operations [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 0 | $ 9,000 | ||
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% | |||
Annual contribution to ESPP, limitation | $ 25,000 | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 289,000 | 268,000 | ||
Employee stock options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options, average minimum vesting period (in years) | 4 years | |||
Stock options, average maximum vesting period (in years) | 5 years | |||
Stock options, contractual life (in years) | 10 years | |||
Unrecognized compensation expense | $ 100,000 | |||
Unrecognized compensation expense, period for recognition (in years) | 2 years 6 months 26 days | |||
Stock-based compensation expense | $ 10,000 | 11,000 | ||
Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Remaining unamortized stock-based compensation expense | $ 100,000 | |||
Remaining unamortized stock-based compensation expense, period for recognition (in years) | 2 years 9 months 18 days | |||
Unvested restricted stock units (in shares) | shares | 8,154 | 8,154 | ||
Granted (in usd per share) | $ / shares | $ 0 | |||
Granted (in shares) | shares | 0 | |||
Restricted Stock Awards [Member] | Minimum [Member] | Equity incentive plans 2012 and 2010 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
Restricted Stock Awards [Member] | Maximum [Member] | Equity incentive plans 2012 and 2010 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 4 years | |||
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Remaining unamortized stock-based compensation expense | $ 4,400,000 | |||
Remaining unamortized stock-based compensation expense, period for recognition (in years) | 2 years 5 months 13 days | |||
Unvested restricted stock units (in shares) | shares | 955,009 | 778,084 | ||
Outstanding non-vested RSUs aggregate intrinsic value | $ 6,200,000 | |||
Outstanding non-vested RSUs weighted average remaining contractual term (in years) | 1 year 5 months 16 days | |||
Intrinsic value of RSUs vested | $ 300,000 | $ 0 | ||
Granted (in usd per share) | $ / shares | $ 6.73 | $ 7.29 | ||
Granted (in shares) | shares | 224,600 | |||
Restricted Stock Units [Member] | Chief Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | shares | 40,000 | |||
Grant date fair value | $ 300,000 | |||
Restricted Stock Units [Member] | Senior Vice President of Engineering [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | shares | 14,000 | |||
Grant date fair value | $ 100,000 | |||
Restricted Stock Units [Member] | Vice President of Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | shares | 10,000 | |||
Grant date fair value | $ 100,000 | |||
Performance Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Remaining unamortized stock-based compensation expense, period for recognition (in years) | 2 years 1 month 2 days | |||
Unvested restricted stock units (in shares) | shares | 402,814 | 328,708 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 2,600,000 | |||
Intrinsic value of RSUs vested | $ 1,400,000 | |||
Granted (in usd per share) | $ / shares | $ 7.62 | |||
Granted (in shares) | shares | 108,500 | 240,164 | ||
Grant date fair value | $ 900,000 | |||
Unamortized stock based compensation | $ 2,500,000 | |||
Weighted average remaining contractual term, PSU | 2 years 1 month 2 days | |||
Performance Stock Units [Member] | Chief Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | shares | 40,000 | |||
Grant date fair value | $ 300,000 | |||
Performance Stock Units [Member] | Senior Vice President of Engineering [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | shares | 14,000 | |||
Grant date fair value | $ 100,000 | |||
Performance Stock Units [Member] | Vice President of Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | shares | 10,000 | |||
Grant date fair value | $ 100,000 | |||
Performance Stock Units [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights | 0.00% | |||
Performance Stock Units [Member] | Minimum [Member] | Two Thousand Twelve Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 1 year | |||
Performance Stock Units [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights | 200.00% | |||
Performance Stock Units [Member] | Maximum [Member] | Two Thousand Twelve Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
Performance Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Remaining unamortized stock-based compensation expense, period for recognition (in years) | 1 year 9 months 15 days | |||
Unvested restricted stock units (in shares) | shares | 33,333 | 33,333 | ||
Granted (in usd per share) | $ / shares | $ 0 | |||
Granted (in shares) | shares | 0 | |||
Unamortized stock based compensation | $ 400,000 | |||
RSU Vesting - December 28, 2018 | Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights | 20.00% | |||
RSU Vesting - December 28, 2019 | Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights | 20.00% | |||
RSU Vesting - December 28, 2020 | Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights | 20.00% | |||
RSU Vesting - December 28, 2021 | Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights | 20.00% |
Equity (Schedule of Stock Optio
Equity (Schedule of Stock Options Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares | ||
Outstanding, beginning of period (in shares) | 326,798 | |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | (3,479) | |
Forfeited (in shares) | (780) | |
Expired (in shares) | (12,941) | |
Outstanding, end of period (in shares) | 309,598 | |
Exercisable (in shares) | 267,946 | |
Weighted Average Exercise Price | ||
Outstanding, beginning of period (in usd per share) | $ 19.54 | |
Granted (in usd per share) | 0 | |
Exercised (in usd per share) | 4.50 | |
Forfeited (in usd per share) | 4.22 | |
Expired (in usd per share) | 27.59 | |
Outstanding, ending of period (in usd per share) | 19.41 | |
Exercisable (in usd per share) | $ 21.71 | |
Weighted Average Remaining Contractual Life (in years): | ||
Outstanding | 1 year 8 months 12 days | |
Exercisable | 9 months 4 days | |
Vested and expected to vest | ||
Number of stock options (in shares) | 309,598 | |
Weighted average exercise price (in usd per share) | $ 19.41 | |
Weighted average remaining contractual term | 1 year 8 months 12 days | |
Aggregate Intrinsic Value | ||
Intrinsic value of shares exercised | $ 13 | $ 100 |
Outstanding | 143 | |
Exercisable | 67 | |
Vested and expected to vest | $ 143 |
Equity (Schedule of Restricted
Equity (Schedule of Restricted Stock Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Intrinsic value of RSUs vested | $ 0.3 | $ 0 |
Remaining unamortized stock-based compensation expense | $ 4.4 | |
Number of Shares | ||
Non-vested, beginning balance (in shares) | 778,084 | |
Granted (in shares) | 224,600 | |
Vested (in shares) | (40,095) | |
Forfeited (in shares) | (7,580) | |
Non-vested, ending balance (in shares) | 955,009 | |
Weighted Average Grant Date Fair Value | ||
Non-vested, beginning balance (in usd per share) | $ 5.91 | |
Granted (in usd per share) | 6.73 | $ 7.29 |
Vested (in usd per share) | 7.09 | |
Forfeited (in usd per share) | 4.02 | |
Non-vested, ending balance (in usd per share) | $ 6.07 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Remaining unamortized stock-based compensation expense | $ 0.1 | |
Number of Shares | ||
Non-vested, beginning balance (in shares) | 8,154 | |
Granted (in shares) | 0 | |
Vested (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Non-vested, ending balance (in shares) | 8,154 | |
Weighted Average Grant Date Fair Value | ||
Non-vested, beginning balance (in usd per share) | $ 8.20 | |
Granted (in usd per share) | 0 | |
Vested (in usd per share) | 0 | |
Forfeited (in usd per share) | 0 | |
Non-vested, ending balance (in usd per share) | $ 8.20 |
Equity (Schedule of Performance
Equity (Schedule of Performance Stock Activity) (Details) - $ / shares | Dec. 28, 2017 | Dec. 31, 2017 |
Performance Stock Units [Member] | ||
Number of Shares | ||
Non-vested, beginning balance (in shares) | 328,708 | |
Granted (in shares) | 108,500 | 240,164 |
Vested (in shares) | (166,058) | |
Non-vested, ending balance (in shares) | 402,814 | |
Weighted Average Grant Date Fair Value | ||
Non-vested, beginning balance (in usd per share) | $ 8.36 | |
Granted (in usd per share) | 7.62 | |
Vested (in usd per share) | 6.86 | |
Non-vested, ending balance (in usd per share) | $ 8.54 | |
Performance Stock Awards [Member] | ||
Number of Shares | ||
Non-vested, beginning balance (in shares) | 33,333 | |
Granted (in shares) | 0 | |
Vested (in shares) | 0 | |
Non-vested, ending balance (in shares) | 33,333 | |
Weighted Average Grant Date Fair Value | ||
Non-vested, beginning balance (in usd per share) | $ 12.25 | |
Granted (in usd per share) | 0 | |
Vested (in usd per share) | 0 | |
Non-vested, ending balance (in usd per share) | $ 12.25 |
Equity (Schedule of Stock-based
Equity (Schedule of Stock-based Compensation Expense - by Award Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 915 | $ 763 |
Employee stock options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 10 | 11 |
Restricted stock awards and units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 451 | 354 |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 289 | 268 |
Employee stock purchase plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 86 | 52 |
Outside director fees in common stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 79 | $ 78 |
Equity (Schedule of Stock-bas47
Equity (Schedule of Stock-based Compensation Expense - by Expense Category) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 915 | $ 763 |
Cost of revenue [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 139 | 93 |
Selling, general, and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 638 | 570 |
Research and development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 138 | $ 100 |
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, 2017 | Dec. 31, 2016 | |
Numerator: | ||
(Loss) income from continuing operations | $ (82) | $ 1,766 |
Loss from discontinued operations | 0 | (9) |
Undistributed earnings allocated to common shareholders for basic and diluted net income per share | $ (82) | $ 1,757 |
Denominator: | ||
Denominator for basic net income per share - weighted average shares outstanding (in shares) | 27,032 | 26,279 |
Dilutive options outstanding, unvested stock units and ESPP (in shares) | 0 | 760 |
Denominator for diluted net income per share - adjusted weighted average shares outstanding (in shares) | 27,032 | 27,039 |
Net (loss) income per basic share: | ||
Continuing operations (in usd per share) | $ 0 | $ 0.07 |
Discontinued operations (in usd per share) | 0 | 0 |
Net income per basic share (in usd per share) | 0 | 0.07 |
Net (loss) income per diluted share: | ||
Continuing operations (in usd per share) | 0 | 0.07 |
Discontinued operations (in usd per share) | 0 | 0 |
Net income per diluted share (in usd per share) | $ 0 | $ 0.07 |
Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation (in shares) | 911 | 529 |
Average market price of common stock (in dollars per share) | $ 7.50 | $ 6.88 |
Equity (Schedule of Common Stoc
Equity (Schedule of Common Stock Reserved for Future Issuances) (Details) - shares | Dec. 31, 2017 | Sep. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise of outstanding stock options (in shares) | 309,598 | 326,798 |
Purchases under the employee stock purchase plan (in shares) | 911,071 | |
Issuance of stock-based awards under the Equity Plans (in shares) | 1,882,779 | |
Purchases under the officer and director share purchase plan (in shares) | 88,741 | |
Total reserved (in shares) | 4,952,826 | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock units (in shares) | 955,009 | 778,084 |
Performance Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock units (in shares) | 402,814 | 328,708 |
Unvested performance stock units (in shares) | 805,628 |
Geographical Information (Narra
Geographical Information (Narrative) (Details) - customers | 3 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Concentration risk, customers | 2 | 3 | |
Percentage of long-lived assets located in the United States | 48.00% | 46.00% | |
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 | 63.00% | 74.00% |
Geographical Information (Sched
Geographical Information (Schedule of Revenue by Geographic Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 24,036 | $ 30,176 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 20,079 | 24,754 |
Asia [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,657 | 3,719 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,227 | 1,630 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 73 | $ 73 |