Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Nov. 29, 2018 | Mar. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | EMCORE CORP | ||
Entity Central Index Key | 808,326 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2018 | ||
Document Fiscal Period Focus | Q4 | ||
Document Fiscal Year Focus | 2,018 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 27,607,194 | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 132.2 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | |||
Revenue | $ 85,617 | $ 122,895 | $ 91,998 |
Cost of revenue | 67,130 | 80,361 | 61,044 |
Gross profit | 18,487 | 42,534 | 30,954 |
Operating expense (income): | |||
Selling, general, and administrative | 21,232 | 22,246 | 20,734 |
Research and development | 15,387 | 12,542 | 9,921 |
Impairments | 0 | 506 | 0 |
Recovery of previously incurred litigation related fees and expenses from arbitration award | 0 | 0 | (2,599) |
Loss (gain) from change in estimate on ARO obligation | 145 | (45) | 0 |
Loss (gain) on sale of assets | 34 | (456) | (41) |
Total operating expense | 36,798 | 34,793 | 28,015 |
Operating (loss) income | (18,311) | 7,741 | 2,939 |
Other income (expense): | |||
Interest income, net | 733 | 245 | 88 |
Foreign exchange (loss) gain | (434) | 82 | (394) |
Other income | 110 | 316 | 0 |
Total other income (expense) | 409 | 643 | (306) |
Income (loss) from continuing operations before income taxes | (17,902) | 8,384 | 2,633 |
Income tax benefit (expense) | 449 | (163) | (14) |
(Loss) income from continuing operations | (17,453) | 8,221 | 2,619 |
Income from discontinued operations, net of tax | 0 | 14 | 5,647 |
Undistributed earnings allocated to common shareholders for basic and diluted net income per share | (17,453) | 8,235 | 8,266 |
Foreign exchange translation adjustment | 324 | (18) | (268) |
Comprehensive (loss) income | $ (17,129) | $ 8,217 | $ 7,998 |
Net (loss) income per basic share: | |||
Continuing operations (in usd per share) | $ (0.64) | $ 0.31 | $ 0.10 |
Discontinued operations (in usd per share) | 0 | 0 | 0.22 |
Net (loss) income per basic share (in usd per share) | (0.64) | 0.31 | 0.32 |
Net (loss) income per diluted share: | |||
Continuing operations (in usd per share) | (0.64) | 0.30 | 0.10 |
Discontinued operations (in usd per share) | 0 | 0 | 0.21 |
Net income per diluted share (in usd per share) | $ (0.64) | $ 0.30 | $ 0.31 |
Weighted-average number of basic shares outstanding (in shares) | 27,266 | 26,659 | 25,979 |
Weighted-average number of basic shares outstanding (in shares) | 27,266 | 27,544 | 26,518 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 63,117 | $ 68,333 |
Restricted cash | 78 | 421 |
Accounts receivable, net of allowance of $548 and $22, respectively | 19,275 | 22,265 |
Inventory | 20,850 | 25,139 |
Prepaid expenses and other current assets | 12,730 | 8,527 |
Total current assets | 116,050 | 124,685 |
Property, plant, and equipment, net | 18,216 | 16,635 |
Non-current inventory | 1,433 | 2,686 |
Other non-current assets | 199 | 78 |
Total assets | 135,898 | 144,084 |
Current liabilities: | ||
Accounts payable | 12,997 | 11,818 |
Accrued expenses and other current liabilities | 14,205 | 9,825 |
Total current liabilities | 27,202 | 21,643 |
Asset retirement obligations | 1,809 | 1,638 |
Other long-term liabilities | 82 | 29 |
Total liabilities | 29,093 | 23,310 |
Commitments and contingencies (Note 11) | ||
Shareholders’ equity: | ||
Common stock, no par value, 50,000 shares authorized; 34,487 shares issued and 27,577 shares outstanding as of September 30, 2018; 33,938 shares issued and 27,028 shares outstanding as of September 30, 2017 | 734,066 | 730,906 |
Treasury stock at cost; 6,910 shares | (47,721) | (47,721) |
Accumulated other comprehensive income | 885 | 561 |
Accumulated deficit | (580,425) | (562,972) |
Total shareholders’ equity | 106,805 | 120,774 |
Total liabilities and shareholders’ equity | $ 135,898 | $ 144,084 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Accounts receivable: | ||
Allowance for doubtful accounts | $ 548 | $ 22 |
Shareholders’ equity: | ||
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) | 34,487,000 | 33,938,000 |
Common stock, shares outstanding (in shares) | 27,577,000 | 27,028,000 |
Treasury stock, shares held (in shares) | 6,910,000 | 6,910,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit |
Beginning balance (in shares) at Sep. 30, 2015 | 25,676,000 | ||||
Beginning balance at Sep. 30, 2015 | $ 135,442 | $ 762,003 | $ (47,721) | $ 847 | $ (579,687) |
Net income | 8,266 | 8,266 | |||
Translation adjustment | (268) | (268) | |||
Stock-based compensation (in shares) | 284,000 | ||||
Stock-based compensation | 1,868 | $ 1,868 | |||
Stock option exercises (in shares) | 45,000 | ||||
Stock option exercises | 225 | $ 225 | |||
Special dividend paid | (39,214) | $ (39,214) | |||
Issuance of common stock - ESPP (in shares) | 193,000 | ||||
Issuance of common stock - ESPP | 735 | $ 735 | |||
Issuance of common stock - Board of Directors (in shares) | 46,000 | ||||
Issuance of common stock - Board of Directors | 263 | $ 263 | |||
Ending balance (in shares) at Sep. 30, 2016 | 26,244,000 | ||||
Ending balance at Sep. 30, 2016 | 107,317 | $ 725,666 | (47,721) | 579 | (571,207) |
Cumulative adjustment for adoption of accounting standard | $ (214) | 214 | |||
Net income | 8,235 | 8,235 | |||
Translation adjustment | (18) | (18) | |||
Stock-based compensation (in shares) | 432,000 | ||||
Stock-based compensation | 3,602 | $ 3,602 | |||
Stock option exercises (in shares) | 158,000 | ||||
Stock option exercises | 534 | $ 534 | |||
Issuance of common stock - ESPP (in shares) | 133,000 | ||||
Issuance of common stock - ESPP | 773 | $ 773 | |||
Issuance of common stock - Board of Directors (in shares) | 61,000 | ||||
Issuance of common stock - Board of Directors | $ 331 | $ 331 | |||
Ending balance (in shares) at Sep. 30, 2017 | 27,028,000 | 27,028,000 | |||
Ending balance at Sep. 30, 2017 | $ 120,774 | $ 730,906 | (47,721) | 561 | (562,972) |
Net income | (17,453) | (17,453) | |||
Translation adjustment | 324 | 324 | |||
Stock-based compensation (in shares) | 372,000 | ||||
Stock-based compensation | $ 3,648 | $ 3,648 | |||
Stock option exercises (in shares) | 6,392 | 6,000 | |||
Stock option exercises | $ 28 | $ 28 | |||
Issuance of common stock - ESPP (in shares) | 171,000 | ||||
Issuance of common stock - ESPP | 741 | $ 741 | |||
Tax withholding paid on behalf of employees for stock-based awards | $ (1,257) | $ (1,257) | |||
Ending balance (in shares) at Sep. 30, 2018 | 27,577,000 | 27,577,000 | |||
Ending balance at Sep. 30, 2018 | $ 106,805 | $ 734,066 | $ (47,721) | $ 885 | $ (580,425) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (17,453) | $ 8,235 | $ 8,266 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 5,617 | 3,757 | 2,506 |
Stock-based compensation expense | 3,648 | 3,602 | 2,086 |
Provision adjustments related to doubtful accounts | 599 | 23 | 23 |
Provision adjustments related to product warranty | 431 | 573 | 376 |
Impairments of equipment | 0 | 506 | 0 |
Recognition of previously deferred gain on sale of assets from discontinued operations | 0 | 0 | (3,804) |
Net loss (gain) on disposal of equipment | 34 | (456) | (41) |
Other | 412 | (50) | (1,422) |
Total non-cash adjustments | 10,741 | 7,955 | (276) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 2,372 | (3,859) | (1,171) |
Inventory | 5,067 | (140) | (10,904) |
Other assets | (3,925) | (4,455) | 148 |
Accounts payable | 477 | 2,095 | 3,179 |
Accrued expenses and other current liabilities | 4,191 | 1,870 | (4,794) |
Total change in operating assets and liabilities | 8,182 | (4,489) | (13,542) |
Net cash provided by (used in) operating activities | 1,470 | 11,701 | (5,552) |
Cash flows from investing activities: | |||
Purchase of equipment | (6,583) | (9,600) | (5,779) |
Receipt of escrow funds from sale of assets | 0 | 0 | 1,853 |
Proceeds from disposal of property, plant and equipment | 82 | 474 | 100 |
Net cash used in investing activities | (6,501) | (9,126) | (3,826) |
Cash flows from financing activities: | |||
Payment of special dividend | 0 | 0 | (39,214) |
Proceeds from stock plans | 770 | 1,306 | 960 |
Tax withholding paid on behalf of employees for stock-based awards | (1,257) | 0 | 0 |
Net cash (used in) provided by financing activities | (487) | 1,306 | (38,254) |
Effect of exchange rate changes on foreign currency | (41) | 3 | 242 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (5,559) | 3,884 | (47,390) |
Cash, cash equivalents and restricted cash at beginning of period | 68,754 | 64,870 | 112,260 |
Cash, cash equivalents and restricted cash at end of period | 63,195 | 68,754 | 64,870 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Cash paid during the period for interest | 63 | 71 | 88 |
Cash paid during the period for income taxes | 131 | 114 | 124 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | |||
Changes in accounts payable related to purchases of equipment | 755 | (861) | 282 |
Issuance of common stock to Board of Directors | $ 0 | $ 331 | $ 263 |
Description of Business
Description of Business | 12 Months Ended |
Sep. 30, 2018 | |
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. This segment is comprised of three product lines: Broadband (which includes Cable TV (“CATV”) systems and components, radio frequency over glass (“RFoG”) products, satellite/microwave communications products and wireless communication products), Chip Devices and Navigation Systems. Sale of Photovoltaics and Digital Products Businesses In the fiscal year ended September 30, 2015 , EMCORE completed the sale of the Company's Photovoltaics Business to SolAero Technologies Corporation (“SolAero”) pursuant to the Asset Purchase Agreement (the “Photovoltaics Agreement”) under which SolAero acquired substantially all of the assets, and assumed substantially all of the liabilities, primarily related to or used in connection with the Company's Photovoltaics Business, including EMCORE's subsidiaries EMCORE Solar Power, Inc. and EMCORE IRB Company, LLC (collectively, the “Photovoltaics Business” and, the sale of the Photovoltaics Business, the “Photovoltaics Asset Sale”), for $149.9 million in cash. In the fiscal year ended September 30, 2015 , EMCORE completed the sale of the Company's telecommunications business (the “Digital Products Business”) to NeoPhotonics Corporation, a Delaware corporation (“NeoPhotonics”), pursuant to the Asset Purchase Agreement (the “Digital Products Agreement”), under which NeoPhotonics acquired certain assets, and certain liabilities, related to the Company's Digital Products Business for an aggregate purchase price of $17.5 million . On January 2, 2015 , EMCORE completed the sale of the Digital Products Business for $1.5 million in cash and a promissory note in the principal amount of $16.0 million (the "Promissory Note"). On April 16, 2015 , EMCORE and NeoPhotonics entered into an agreement to adjust the purchase price for the Digital Products Business, resulting in an adjusted balance of the Promissory Note of $15.5 million . On April 17, 2015 , NeoPhotonics paid in full the outstanding balance of the Promissory Note of $15.5 million , plus accrued interest of $0.2 million . No Photovoltaics Business or Digital Products Business assets or liabilities that were sold remain on the consolidated balance sheet as of September 30, 2018 or September 30, 2017 . The financial results of the Photovoltaics Business and the Digital Products Business are presented as “discontinued operations” on the consolidated statements of operations and comprehensive income for the fiscal years ended September 30, 2018 , 2017 and 2016 . See Note 5 - Discontinued Operations for additional information. The notes to our consolidated financial statements relate to our continuing operations only, unless otherwise indicated. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation : Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the assets, liabilities, shareholders' equity, and operating results of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. We are not the primary beneficiary of, nor do we hold a significant variable interest in, any variable interest entity. Use of Estimates : The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, as of the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. The accounting estimates that require our most significant, difficult, and/or subjective judgments include: • the valuation of inventory; • the allowance for doubtful accounts; and, • the valuation allowance for deferred tax assets. We develop estimates based on historical experience and on various assumptions about the future that are believed to be reasonable based on the best information available to us. Our reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. Concentration of Credit Risk : Financial instruments that may subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Our cash and cash equivalents are held in safekeeping primarily with Wells Fargo. When necessary, we perform credit evaluations on our customers' financial condition and occasionally we request deposits in advance of shipping product to our customers. These financial evaluations require significant judgment and are based on a variety of factors including, but not limited to, current economic trends, historical payment patterns, bad debt write-off experience, and financial review of the particular customer. Cash and Cash Equivalents : Cash and cash equivalents consists primarily of bank deposits and highly liquid short-term investments with a maturity of three months or less at the time of purchase. Restricted Cash : Restricted cash represents recently deposited cash that is temporarily restricted by our bank in accordance with the terms of the outstanding credit facility. Accounts Receivable : We regularly evaluate the collectability of our accounts receivable and maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to meet their financial obligations to us. The allowance is based on the age of receivables and a specific identification of receivables considered at risk of collection. We classify charges associated with the allowance for doubtful accounts as selling, general, and administrative expense. Inventory : Inventory is stated at the lower of cost or net realizable value (first-in, first-out). Inventory that is expected to be used within the next 12 months is classified as current inventory. We write-down inventory once it has been determined that conditions exist that may not allow the inventory to be sold for its intended purpose or the inventory is determined to be excess or obsolete based on assumptions about future demand and market conditions. The charge related to inventory write-downs is recorded as a cost of revenue. We evaluate inventory levels at least quarterly against sales forecasts on a significant part-by-part basis, in addition to determining its overall inventory risk. We have incurred, and may in the future incur charges to write-down our inventory. See Note 8 - Inventory in the notes to the consolidated financial statements for additional information related to our inventory. Property, Plant, and Equipment : Our property, plant, and equipment are recorded at cost. Plant and equipment are depreciated on a straight-line basis over the following estimated useful lives of the assets: Description Estimated Useful Life Equipment three to ten years Furniture and fixtures five years Computer hardware and software five to seven years Leasehold improvements three to six years Leasehold improvements are amortized over the lesser of the asset life or the lease term. Expenditures for repairs and maintenance are charged to expense as incurred. The costs for major renewals and improvements are capitalized and depreciated over their estimated useful lives of the related asset. The cost and related accumulated depreciation of the assets are removed from the accounts upon disposition and any resulting gain or loss is reflected in the consolidated statement of operations and comprehensive income. Valuation of Long-lived Assets : Long-lived assets consist primarily of property, plant, and equipment, net. Since our long-lived assets are subject to amortization, we review these assets for impairment in accordance with the provisions of Accounting Standards Codification ("ASC") 360, Property, Plant, and Equipment. We review long-lived assets for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. Our impairment testing of long-lived assets consists of determining whether the carrying amount of the long-lived asset (asset group) is recoverable, in other words, whether the sum of the future undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group) exceeds its carrying amount. The determination of the existence of impairment involves judgments that are subjective in nature and may require the use of estimates in forecasting future results and cash flows related to an asset or group of assets. In making this determination, we use certain assumptions, including estimates of future cash flows expected to be generated by these assets, which are based on additional assumptions such as asset utilization, the length of service that assets will be used in our operations, and estimated salvage values. Asset Retirement and Environmental Obligations : Pursuant to ASC 410, Asset Retirement and Environmental Obligations , an asset retirement obligation (“ARO” or “AROs”) is recorded when there is a legal obligation associated with the retirement of a tangible long-lived asset and the fair value of the liability can reasonably be estimated. Upon initial recognition of an asset retirement obligation, a company increases the carrying amount of the long-lived asset by the same amount as the liability. Over time, the liabilities are accreted for the change in their present value through charges to operations costs. The initial capitalized costs are depleted over the useful lives of the related assets through charges to depreciation, and/or amortization. If the fair value of the estimated ARO changes, an adjustment is recorded to both the ARO and the asset retirement cost. Revisions in estimated liabilities can result from revisions of estimated inflation rates, escalating retirement costs, and changes in the estimated timing of settling ARO liabilities. We have known asset retirement conditions, such as certain asset decommissioning and restoration of rented facilities to be performed in the future. Fair Value of Financial Instruments : We determine the fair value of our financial instruments in accordance with ASC 820, Fair Value Measurements and Disclosures. Revenue Recognition : Revenue is recognized upon shipment, provided persuasive evidence of a contract exists, the price is fixed, the product meets our customer's specifications, title and ownership have transferred to the customer, and there is reasonable assurance of collection of the sales proceeds. The majority of our products have shipping terms that are free on board or free carrier alongside (“FCA”) shipping point, which means that we fulfill our delivery obligation when the goods are handed over to the freight carrier at our shipping dock. This means the customer bears all costs and risks of loss or damage to the goods from that point. We account for shipping and related transportation costs by recording the charges that are invoiced to customers as revenue, with the corresponding cost recorded as cost of revenue. In those instances where inventory is maintained at a consigned location, revenue is recognized only when our customer pulls product for use and after title and ownership has transferred to the customer. Any warranty cost and remaining obligations that are inconsequential or perfunctory are accrued when the corresponding revenue is recognized. Distributors: We use a number of distributors around the world and recognize revenue upon shipment of product to these distributors. Title and risk of loss pass to the distributors upon shipment, and our distributors are contractually obligated to pay us on standard commercial terms, just like direct customers. We do not sell to our distributors on consignment and, except in the event of product discontinuance, do not give distributors a right of return. Contract Manufacturers: Prior to certain customers accepting product that is manufactured at one of our contract manufacturers, these customers require that they first qualify the product and manufacturing processes at our contract manufacturer. The customers' qualification process determines whether the product manufactured at our contract manufacturer achieves their quality, performance, and reliability standards. After a customer completes the initial qualification process, we receive approval to ship qualified product to that customer. As part of the manufacturing process at our contract manufacturers, the finished product is tested prior to shipment to the customer using the same criteria that our customer uses to test product it receives. Revenue is recognized upon shipment of customer-qualified product, provided persuasive evidence of a contract exists, the price is fixed, the product meets our customer's specifications, title and ownership have transferred to the customer, and there is reasonable assurance of collection of the sales proceeds. Product Warranty Reserves : We provide our customers with limited rights of return for non-conforming shipments and warranty claims for certain products. Pursuant to ASC 450, Contingencies, we make estimates of product warranty expense using historical experience rates as a percentage of revenue and accrue estimated warranty expense as a cost of revenue. We estimate the costs of our warranty obligations based on historical experience of known product failure rates and anticipated rates of warranty claims, use of materials to repair or replace defective products, and service delivery costs incurred in correcting product issues. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. Should our actual experience relative to these factors differ from our estimates, we may be required to record additional warranty reserves. Alternatively, if we provide more reserves than needed, we may reverse a portion of such provisions in future periods. Research and Development : Research and development costs are charged as an expense when incurred. Stock-Based Compensation : Stock-based compensation expense is measured at the stock option or award grant date, based on the fair value of the award, and is recorded to cost of revenue, sales, general, and administrative, and research and development expense based on an employee's responsibility and function over the requisite service period. We use the Black-Scholes option-pricing model or the Monte-Carlo lattice model and the straight-line attribution approach to determine the fair value of stock-based awards in accordance with ASU 2016-09, Compensation. These option-pricing models require the input of highly subjective assumptions, including the option's expected life, the expected volatility of the price of the Company’s common stock, risk-free interest rates and the expected dividend yield of the Company’s common stock. Stock-based compensation expense is reduced for forfeitures. Foreign Exchange : We recognize gains and losses due to the effect of exchange rate changes on foreign currency primarily due to our operations in China. The assets and liabilities of our foreign operations are translated from their respective functional currencies into U.S. dollars at the rates in effect at the consolidated balance sheet dates, and the revenue and expense amounts are translated at the average rate during the applicable periods reflected on the consolidated statements of operations and comprehensive income. Foreign currency translation adjustments are recorded as other comprehensive income. Gains and losses from foreign currency transactions denominated in currencies other than the U.S. dollar, both realized and unrealized, are recorded as foreign exchange (loss) gain on our consolidated statements of operations and comprehensive income. Income Taxes : In accordance with ASC 740, Income Taxes, deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. We record valuation allowances against all deferred tax assets for amounts which are not considered more likely to be realized. Income (Loss) Per Share : We are required, in periods in which we have net income, to calculate basic and diluted income per share using the two-class method. The two-class method is required because our unvested restricted stock awards are considered participating securities as these securities have the right to receive dividends or dividend equivalents should we declare dividends on our common stock. Under the two-class method, during periods of net income, net income is first reduced for distributions declared on all classes of securities to arrive at undistributed earnings. The undistributed earnings are then allocated on a pro-rata basis between the common shareholders and participating securities holders. The weighted-average number of common shares and participating securities outstanding during the period is then used to calculate basic and diluted income per share. In periods in which we have a net loss, basic loss per share is calculated by dividing the loss attributable to common shareholders by the weighted-average number of common shares outstanding during the period. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements and U.S. Tax Reform | 12 Months Ended |
Sep. 30, 2018 | |
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 standard is effective for annual periods, beginning after December 15, 2017 and interim periods within those annual periods. The new standard will be effective for our fiscal year beginning October 1, 2018 and early adoption is permitted. The Company does not expect the adoption of ASU 2017-09 will have a material impact on the Company’s consolidated financial statements. • In June 2016, the FASB issued ASU 2016-13 Financial Instruments - Credit Losses, Measurement of Credit Losses on Financial Instruments , which changes the way entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net earnings. The new standard is effective for annual periods beginning after December 15, 2019, including interim periods within those annual periods. The new standard will be effective for our fiscal year beginning October 1, 2020 and early adoption is permitted. We are evaluating the impact the adoption of the new standard will have on our consolidated financial statements and related disclosures. • 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. We are in the process of implementing changes to our systems and processes in conjunction with our review of lease agreements. Topic 842 will be effective for our fiscal year beginning October 1, 2019 and expect to elect certain available transitional practical expedients. Early adoption is permitted. As currently issued, entities are required to use 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. There are additional optional practical expedients that an entity may elect to apply. The Company is continuing to evaluate the effect of this update on its consolidated financial statements and related disclosures. • In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilitie s. This ASU amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, and supersedes the guidance to classify equity securities with readily determinable fair values into different categories (that is, trading or available-for-sale) and requires equity securities to be measured at fair value with changes in the fair value recognized through net income. This ASU is effective for annual and interim periods beginning after December 15, 2017. The new standard will be effective for our fiscal year beginning October 1, 2018. The Company does not anticipate the adoption will have a material impact on our 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 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, was effective for our fiscal year beginning October 1, 2018. The standard permits the use of either the full retrospective or modified retrospective method. We established a cross-functional implementation team to implement ASU 2014-09. We have substantially completed and implemented changes to our systems, processes and internal controls to meet the reporting and disclosure requirements upon adoption as of October 1, 2018 . 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 our evaluation completed, the Company believes that the pattern of revenue recognition for these revenue streams upon implementation 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. As of September 30, 2018 , the Company plans to adopt ASU 2014-09 utilizing a modified retrospective method on October 1, 2018 . The adoption of ASU 2014-09 will not have a material impact on the Company's consolidated financial statements and related disclosures. 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 fiscal year ended September 30, 2018 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 fiscal year ended September 30, 2018 , the elimination of the manufacturing deduction and credit for certain foreign taxes paid did not result in a significant impact on our consolidated 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, 2018, these transitional impacts did not result in an impact on our consolidated financial statements for the fiscal year ended September 30, 2018 . 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 SEC has issued rules that 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 completed finalizing and recording any resulting adjustments during our fiscal year ending September 30, 2018. See also Note 12 - Income and other Taxes. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 12 Months Ended |
Sep. 30, 2018 | |
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 consolidated balance sheets that sum to the total of the same amounts shown in the unaudited statements of consolidated cash flows: As of September 30, (in thousands) 2018 2017 2016 Cash $ 2,965 $ 8,054 $ 3,989 Cash equivalents $ 60,152 $ 60,279 $ 59,916 Restricted cash 78 421 965 Total cash, cash equivalents and restricted cash $ 63,195 68,754 64,870 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 September 30, 2018 , 2017 , and 2016 . |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Sale of Photovoltaics Business The following table presents the statements of operations for the discontinued operations of the Photovoltaics Business: For the Fiscal Years Ended September 30, (in thousands) 2018 2017 2016 Revenue $ — $ — $ — Cost of revenue — 12 (159 ) Gross (loss) income — (12 ) 159 Operating expense (income) — 13 (868 ) (Loss) income from discontinued operations before income tax expense — (25 ) 1,027 Income tax benefit — — 20 (Loss) income from discontinued operations, net of tax $ — $ (25 ) $ 1,047 On December 22, 2015, we settled all of the outstanding rights and obligations of a solar power venture in Spain, including outstanding non-current receivables, for a payment of $0.7 million . The outstanding non-current receivables had a net book value of $0 at the time of settlement as they were fully allowed for previously. The resulting gain was recorded in the discontinued operations of the Photovoltaics Business for the fiscal year ended September 30, 2016. Included in discontinued operations of the Photovoltaics Business during the fiscal year ended September 30, 2016 were $0.4 million of New Mexico incentive tax credits received. There were no incentive tax credits received during the fiscal years ended September 30, 2018 and 2017. Sale of Digital Products Business The following table presents the statements of operations for the discontinued operations of the Digital Products Business: For the Fiscal Years Ended September 30, (in thousands) 2018 2017 2016 Revenue $ — $ — $ — Cost of revenue — — (500 ) Gross profit — — 500 Operating expense (income) — 2 (292 ) Recognition of previously deferred gain on sale of assets — — 3,804 Other income — 41 — Income from discontinued operations before income tax expense — 39 4,596 Income tax benefit — — 4 Income from discontinued operations, net of tax $ — $ 39 $ 4,600 In December 2015, we entered into an agreement to terminate our lease and related obligations associated with a facility in Newark, California which we abandoned effective February 2016 following the sale of the Digital Products Business. As a result of this agreement, we paid $0.2 million and recorded a gain of $0.3 million on the lease termination in the discontinued operations of the Digital Products Business during the fiscal year ended September 30, 2016. Also see Note 10 - Accrued Expenses and Other Current Liabilities . Included in cost of revenue for the fiscal year ended September 30, 2016 is $0.4 million due to a reduction in expected product warranty liabilities from a settlement associated with the Digital Products Business. During the fiscal year ended September 30, 2016, we recognized the deferred gain of $3.4 million and reversal of other liabilities of $0.4 million , that had been recorded as of September 30, 2015, resulting in a credit of $3.8 million to deferred gain on sale of assets within discontinued operations of the Digital Products Business as the result of the favorable ruling from the Sumitomo Electric Industries, LTD (“SEI”) arbitration. Also see Note 13- Commitments and Contingencies . |
Fair Value Accounting
Fair Value Accounting | 12 Months Ended |
Sep. 30, 2018 | |
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. Cash, cash equivalents and restricted cash are based on Level 1 measurements. The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, other current assets, and accounts payable approximate fair value because of the short maturity of these instruments. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The components of accounts receivable consisted of the following: As of September 30, (in thousands) 2018 2017 Accounts receivable, gross $ 19,823 $ 22,287 Allowance for doubtful accounts (548 ) (22 ) Accounts receivable, net $ 19,275 $ 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 fiscal years ended September 30, 2018 , 2017 and 2016 . Allowance for Doubtful Accounts (in thousands) For the Fiscal Years ended September 30, 2018 2017 2016 Balance at beginning of period $ 22 $ 36 $ 462 Provision adjustment - expense, net of recoveries 599 23 23 Write-offs and other adjustments - deductions to receivable balances (73 ) (37 ) (449 ) Balance at end of period $ 548 $ 22 $ 36 During the fiscal year ended September 30, 2018 , we recorded a $0.5 million reserve on accounts receivable related to two customers account balances for which management had uncertainty with respect to its respective total collectability. |
Inventory
Inventory | 12 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The components of inventory consisted of the following: As of September 30, (in thousands) 2018 2017 Raw materials $ 11,857 $ 15,826 Work in-process 5,402 6,586 Finished goods 5,024 5,413 Inventory balance at end of period $ 22,283 $ 27,825 Current portion $ 20,850 $ 25,139 Non-Current portion $ 1,433 $ 2,686 The non-current inventory balance of $1.4 million and $2.7 million as of September 30, 2018 and 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 it would cease manufacturing a part. During the fiscal year ended September 30, 2018 , we recorded a $1.0 million reserve on non-current inventory due to the decline in sales and future demand of the inventory. |
Property, Plant, and Equipment,
Property, Plant, and Equipment, net | 12 Months Ended |
Sep. 30, 2018 | |
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 September 30, (in thousands) 2018 2017 Equipment $ 36,625 $ 31,507 Furniture and fixtures 1,109 1,109 Computer hardware and software 2,928 2,974 Leasehold improvements 2,049 2,330 Construction in progress 3,648 4,539 Property, plant, and equipment, gross $ 46,359 42,459 Accumulated depreciation (28,143 ) (25,824 ) Property, plant, and equipment, net $ 18,216 $ 16,635 Depreciation expense totaled $5.6 million , $3.7 million and $2.4 million during the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively. Impairment testing As of September 30, 2018 and 2016 , we determined no impairment triggers were present, and therefore, an impairment test was not performed. In March 2017 , in connection with our opening a new manufacturing facility in China, we identified equipment with a net book value of approximately $0.6 million that would no longer be utilized after the completion of the move later in fiscal year 2017. After taking into consideration the costs of disposal and estimated net funds from the sale of the equipment of approximately $0.1 million , we recorded a charge to impairments of approximately $0.5 million in the fiscal year ended September 30, 2017 . |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Sep. 30, 2018 | |
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 September 30, (in thousands) 2018 2017 Compensation $ 3,065 $ 3,904 Warranty 642 684 Professional fees 604 653 Customer deposits 22 20 Deferred revenue 368 — Income and other taxes 7,593 2,920 Severance and restructuring accruals 82 628 Other 1,829 1,016 Accrued expenses and other current liabilities $ 14,205 $ 9,825 Compensation : Compensation is primarily comprised of accrued employee salaries, taxes and benefits. Severance and restructuring accruals : In connection with the abandonment of our Newark, California facility following the closing of the sale of the Digital Products Business, we accrued for the remaining lease costs through the lease termination in May 2016 . In December 2015 , we entered into an agreement to terminate this lease and related obligations, including AROs, as of February 2016 for a payment of $0.2 million . As a result of the agreement, we recorded a gain of $0.3 million on the lease termination. The resulting gain was recorded in the discontinued operations of the Digital Products Business for the fiscal year ended September 30, 2016 . See Note 5 - Discontinued Operations . On June 7, 2016 , the Company's former Chief Financial Officer (“CFO”) notified the Company that he would resign as the Company's CFO, effective as of June 20, 2016 (the “Separation Date”). The Company and the former CFO entered into a separation agreement and general release, dated June 7, 2016 (the “Separation Agreement”), which includes mutual releases by the former CFO and the Company of all claims related to his employment and service relationship with, and termination of employment and service from, the Company. The Separation Agreement provides for, among other things, the continuation of his base salary for 64 weeks , benefits for 16 months , outplacement services for a period of not more than 1 year and with a value not in excess of $15,000 and immediate vesting of all his outstanding non-vested equity awards, other than his most recent equity award. These payments are not contingent upon any future service by the former CFO. The Company recorded a charge of approximately $0.4 million in the fiscal year ended September 30, 2016 related to this Separation Agreement. In an effort to better align our current and future business operations, in May 2016 the Company announced a reduction in its workforce by approximately 30 individuals and recorded a charge for severance for the affected employees in the amount of $0.3 million in the fiscal year ended September 30, 2016 . In November 2016 , the Company announced an additional reduction in the workforce of approximately 5 individuals and recorded a charge of $0.2 million in the fiscal year ended September 30, 2017 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 a portion 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 anticipated opening later in fiscal year 2017 of a new manufacturing facility in China to reduce costs and improve efficiency, 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 close its Ivyland, Pennsylvania location during fiscal year 2018 and reduce 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 . In connection with the closing of the Ivyland, Pennsylvania location in January 2018 , we accrued for the remaining lease costs of the facility through the lease termination of February 2019 . Included in selling, general and administrative expense for the fiscal year ended September 30, 2018 , was $0.2 million related to the remaining lease costs. In March 2018 , the Company announced an additional workforce reduction of approximately 21 individuals to better align our workforce towards our Chip Devices and Navigation Systems product lines and away from Broadbrand product lines and recorded a charge of $0.4 million in the fiscal year ended September 30, 2018 . 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 Restructuring- related accruals Total Balance as of September 30, 2016 $ 642 $ — $ 642 Expense - charged to accrual 1,994 — 1,994 Payments and accrual adjustments (2,008 ) — (2,008 ) Balance as of September 30, 2017 628 — 628 Expense - charged to accrual 512 186 698 Payments and accrual adjustments (1,133 ) (111 ) (1,244 ) Balance as of September 30, 2018 $ 7 $ 75 $ 82 Warranty: The following table summarizes the changes in our product warranty accrual accounts: Product Warranty Accruals For the Fiscal Years ended September 30, (in thousands) 2018 2017 2016 Balance at beginning of period $ 684 $ 871 $ 1,664 Provision for product warranty - expense 431 573 376 Adjustments and utilization of warranty accrual (473 ) (760 ) (1,169 ) Balance at end of period $ 642 $ 684 $ 871 |
Credit Facilities
Credit Facilities | 12 Months Ended |
Sep. 30, 2018 | |
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 July 27, 2017 , we entered into a Ninth Amendment of the Credit Facility which adjusted the interest rate to LIBOR plus 1.75% . On November 7, 2018 , we entered into a Tenth Amendment of the Credit Facility which extended the maturity date of the facility to November 2021 . 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 purpose subject to a limitation of the Company having liquidity of at least $25,000,000 million after such use. As of September 30, 2018 , there were no amounts outstanding under this Credit Facility and the Company was in compliance with all financial covenants. Also, as of September 30, 2018 , the Credit Facility had approximately $0.5 million reserved for one outstanding stand-by letter of credit and $7.3 million available for borrowing. As of November 29, 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 | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income and Other Taxes | Income and Other Taxes The Company's income (loss) from continuing operations before income taxes consisted of the following: Income (loss) from continuing operations before income taxes For the Fiscal Years Ended September 30, (in thousands) 2018 2017 2016 Domestic $ (16,752 ) $ 10,632 $ 1,735 Foreign (1,150 ) (2,248 ) 898 Income (loss) from continuing operations before income taxes $ (17,902 ) $ 8,384 $ 2,633 The Company's income tax (benefit) expense consisted of the following: Income tax (benefit) expense For the Fiscal Years Ended September 30, (in thousands) 2018 2017 2016 Federal: Current $ (502 ) $ 135 $ — Deferred — — — (502 ) 135 — State: Current 53 28 (117 ) Deferred — — — 53 28 (117 ) Foreign: Current — — 131 Deferred — — — — — 131 Total income tax (benefit) expense $ (449 ) $ 163 $ 14 EMCORE Corporation is incorporated in the state of New Jersey. A reconciliation of the provision for income taxes, with the amount computed by applying the statutory U.S. federal and state income tax rates to continuing operations income before provision for income taxes is as follows: Provision for Income Taxes For the Fiscal Years Ended September 30, (in thousands) 2018 2017 2016 Income tax benefit computed at U.S. federal statutory rate $ (4,346 ) $ 2,841 $ 896 State tax expense benefit, net of U.S. federal effect (168 ) 414 (41 ) Foreign tax rate differential 36 229 (94 ) Effect due to change in tax rate 57,988 2,528 626 Shortfall (windfall) from stock based compensation 681 (150 ) — Other 216 126 (57 ) State net operating loss carryforward adjustment (305 ) 933 685 Change in valuation allowance (54,551 ) (6,758 ) (2,001 ) Income tax (benefit) expense $ (449 ) $ 163 $ 14 Effective tax rate (2.5 )% 1.9 % 0.5 % Significant components of our deferred tax assets are as follows: Deferred Tax Assets As of September 30 (in thousands) 2018 2017 Deferred tax assets: Federal net operating loss carryforwards $ 91,639 $ 144,455 Foreign net operating loss carryforwards 1,301 587 Income tax credit carryforwards 2,671 3,211 Inventory reserves 2,065 2,037 Accounts receivable reserves 123 8 Accrued warranty reserve 144 249 State net operating loss carryforwards 4,624 4,525 Stock compensation 728 2,367 Deferred compensation 200 349 Fixed assets and intangibles (33 ) 136 Other 838 927 Total deferred tax assets 104,300 158,851 Valuation allowance (104,300 ) (158,851 ) Net deferred tax assets $ — $ — For the fiscal years ended September 30, 2018 , 2017 and 2016 , the Company recorded income tax benefit (expense) from continuing operations of approximately $0.4 million , $(0.2) million and $(14,000) , respectively. For the fiscal years ended September 30, 2018 , 2017 and 2016 , the Company recorded income tax benefit from discontinued operations of $0 , $0 and $24,000 , respectively. Income tax benefit for fiscal year ended September 30, 2018 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, state minimum taxes, and foreign tax expense included within continuing operations. For the fiscal years ended September 30, 2018 , 2017 and 2016, the effective tax rate on continuing operations was (2.5)% , 1.9% and 0.5% , respectively. The higher beneficial tax rate for fiscal year 2018 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 and the fiscal year 2018 operating loss. The higher tax rate for fiscal year 2017 was primarily due to higher alternative minimum tax as a result of the increase in net income. The lower tax rate for fiscal year 2016 was primarily due to permanent differences, state tax benefits, foreign tax rate differentials and changes in the Company's results in the current year. The Company uses some estimates to forecast permanent differences between book and tax accounting. On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act includes significant changes to the U.S. corporate income tax system including: a federal corporate rate reduction from 34% to 21% effective January 1, 2018. Consequently, the Company recorded a decrease to the tax effected U.S. net deferred tax assets of $58.0 million , which was primarily offset by a change in the valuation allowance. The Tax Act also includes other items such as limitations on the deductibility of executive compensation, immediate expensing of qualified property, the creation of new minimum taxes such as the base erosion anti-abuse tax (“BEAT”), global Intangible Low Taxed Income (“GILTI”) tax and the transition of U.S. international taxation from a worldwide tax system to a modified territorial tax system, which will result in a one time U.S. tax liability on those earnings which have not previously been repatriated to the U.S. (the “Transition Tax”). The Company evaluated the applicability of these items and appropriately reflected them in the tax provision as of September 30, 2018. In the fourth quarter of fiscal 2018, we recorded an adjustment to the provisional amounts originally recorded in the first and second quarters of fiscal 2018 related to the re-measurement of net DTA. This adjustment was $58.0 million . During fiscal 2018, we recorded a tax benefit of $0.5 million related to the Tax Act related to the credit on future tax payments for past AMT amounts paid. In December 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118, which addresses how a company recognizes provisional estimates when a company does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the effect of the changes in the Tax Act. The measurement period ends when a company has obtained, prepared, and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. The final impact of the Tax Act may differ from the above provisional estimates due to changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, by changes in accounting standard for income taxes and related interpretations in response to the Tax Act, and any updates or changes to estimates used in the provisional amounts. We have determined that the $0.5 million of tax benefit for the credit on future tax payments for past AMT amounts paid and the $58.0 million of tax expense for DTA re-measurement were each provisional amounts and reasonable estimates for fiscal 2018. Estimates used in the provisional amounts include: the anticipated reversal pattern of the gross DTAs; and earnings and foreign taxes attributable to foreign subsidiaries. All deferred tax assets have a full valuation allowance at September 30, 2018 . However, on a quarterly basis, the Company will evaluate the positive and negative evidence to assess whether the more likely than not criteria, mandated by ASC 740, has been satisfied in determining whether there will be further adjustments to the valuation allowance. During the fiscal year ended September 30, 2017 , we increased previously unrecognized tax benefits by $0.1 million related to foreign taxes. During the fiscal year ended September 30, 2016 , we decreased previously unrecognized tax benefits by $0.1 million . Of the fiscal year 2016 amount of unrecognized tax benefits, $112,800 was recognized in income tax expense from continuing operations and $12,000 was recognized in income tax expense from discontinued operations. As of September 30, 2018 and 2017 , we had approximately $0.4 million and $0.3 million , respectively of interest and penalties accrued as tax liabilities on our balance sheet. As of September 30, 2018, the Company had net operating loss carryforwards for U.S. federal income tax purposes of approximately $436.4 million which begin to expire in 2022 . As of September 30, 2018, the Company had foreign net operating loss carryforwards of $5.2 million which begin to expire in 2021 , as well as state net operating loss carryforwards of approximately $53.0 million which begin to expire in 2019 . As of September 30, 2018 , the Company also had tax credits (primarily foreign income and U.S. research and development tax credits) of approximately $2.7 million . The research credits will begin to expire in 2019 . Utilization of net operating loss and tax credit carryforwards are subject to a substantial annual limitation due to the ownership change limitations set forth in Internal Revenue Code Section 382 and similar state provisions. The Company prepared an Internal Revenue Code 382 analysis to determine the annual limitations on the Company's consolidated net operating loss carryforwards. As a result of the $436.4 million of U.S. net operating loss carryforwards, approximately $219.5 million is subject to an annual limitation and $216.9 million of the net operating losses are not subject to an annual limitation. Such annual limitations could result in the expiration of the net operating loss and tax credit carryforwards before utilization. A reconciliation of the beginning and ending amount of unrecognized gross tax benefits is as follows: Unrecognized Gross Tax Benefit (in thousands) Balance as of September 30, 2016 $ 288 Adjustments based on tax positions related to the current year 131 Adjustments based on tax positions of prior years — Balance as of September 30, 2017 419 Adjustments based on tax positions related to the current year — Adjustments based on tax positions of prior years — Balance as of September 30, 2018 $ 419 As of September 30, 2018 and 2017 , we had approximately $0.4 million and $0.3 million , respectively of interest and penalties accrued as tax liabilities on our balance sheet. We believe that it is reasonably possible that none of the uncertain tax position will be paid or settled within the next 12 months. We file income tax returns in the U.S. federal, state, and local jurisdictions. In April 2015 the IRS completed its exam of the September 30, 2012 tax return and the Company was notified there were no changes to the originally filed return. There are no state income tax returns under examination. The following tax years remain open to assessment for each of the more significant jurisdictions where we are subject to income taxes: after fiscal year 2014 for the U.S. federal, after fiscal year 2013 for the State of New Mexico, and after fiscal year 2013 for the state of California. Included in discontinued operations during the fiscal year ended September 30, 2016 was $0.4 million of New Mexico incentive tax credits received. The amount received was allocated to cost of goods sold, selling, general and administrative and research and development expense primarily based on the number of employees allocated to the related departments. These credits resulted in cash refunds and a reduction of future payroll and compensation taxes. There were no incentive tax credits received during the fiscal years ended September 30, 2018 and 2017 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases : Estimated future minimum lease payments under non-cancelable operating leases with an initial or remaining term of one year or more are $0.8 million , $0.8 million , $0.6 million , $0.6 million , and $0.7 million for the fiscal years ended September 30, 2019 , 2020 , 2021 , 2022 and 2023 and thereafter, respectively. Operating Lease Obligations : We lease certain facilities and equipment under non-cancelable operating leases. Operating lease amounts exclude renewal option periods, property taxes, insurance, and maintenance expenses on leased properties. Our facility leases typically provide for rental adjustments for increases in base rent (up to specific limits), property taxes, insurance, and general property maintenance that would be recorded as rent expense. Rent expense was approximately $1.2 million , $1.4 million and $1.4 million for the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively. 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 fiscal year ended September 30, 2018 . Accretion expense of $0.1 million was recorded during fiscal years ended September 30, 2018 , 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 . 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 September 30, 2018 and September 30, 2017 of $1.8 million and $1.6 million , respectively. Leases related to the other two buildings expired in 2011, and these buildings are being occupied on a month-to-month basis. The Company’s ARO consists of legal requirements to return the existing leased facilities to their original state and certain environmental work to be performed due to the presence of a manufacturing fabrication operation and significant changes to the facilities over the past thirty years. During the fiscal year ended September 30, 2018 , in connection with the Company extending the lease term of the Alhambra facility, the lease and related obligations, including ARO, were revised, resulting in an increase of the estimated ARO obligation by the Company. As a result of the lease extension, the Company increased its ARO associated with the Alhambra facility by $0.1 million . During the fiscal year ended September 30, 2017 , in connection with the Company moving to a new manufacturing facility in China, the lease and related obligations, including ARO, at the former China facility was terminated, resulting in no payment by the Company. As a result of this agreement, the Company reduced its ARO associated with the former China facility by $45,000 . During the fiscal year ended September 30, 2016 , the Company entered into an agreement to terminate the lease and related obligations, including ARO, in Newark, California for a one-time settlement payment of $0.2 million . As a result of this agreement and payment, the Company reduced its ARO associated with the Newark facility by $0.3 million . In May 2016 , which was retroactively effective on February 1, 2016, the Company entered into a five year lease agreement for facilities in Beijing, China where some manufacturing work is to be performed. In connection with the lease agreement, the Company has recorded an ARO liability in the amount of $0.1 million at September 30, 2018 and 2017 . The following table summarizes ARO activity: Asset Retirement Obligations September 30, (in thousands) 2018 Balance at September 30, 2017 $ 1,638 Accretion expense 66 Revision in estimated cash flows 105 Balance at September 30, 2018 $ 1,809 Indemnifications : We have agreed to indemnify certain customers against claims of infringement of intellectual property rights of others in our sales contracts with these customers. Historically, we have not paid any claims under these indemnification obligations. In March 2012, we entered into a Master Purchase Agreement with SEI, pursuant to which we agreed to sell certain assets and transfer certain obligations. Under the terms of the Master Purchase Agreement, we agreed to indemnify SEI for up to $3.4 million of potential claims and expenses for the two -year period following the sale and we recorded this amount as a deferred gain on our balance sheet as a result of these contingencies. On September 23, 2014 , SEI filed for arbitration against EMCORE, in accordance with the terms of the Master Purchase Agreement between the parties. SEI was seeking $47.5 million from EMCORE, relating to numerous claims. On April 12, 2016 , the International Court of Arbitration tribunal rejected SEI's claims. The panel ruled that EMCORE owed SEI none of the amounts SEI sought in the arbitration and that the Company was entitled to collect the $1.9 million held in escrow, which was received in June 2016. The Company was also entitled to recover $2.6 million in fees and costs from SEI, which was received in June 2016. During the fiscal year ended September 30, 2016 , we recognized a gain associated with the release of $3.4 million of previously recorded gain associated with the sale of assets and reversal of other liabilities of $0.4 million , resulting in a credit of $3.8 million to recognition of previously deferred gain on sale of assets within discontinued operations of the Digital Products Business. During the fiscal year ended September 30, 2016 , we recognized the $2.6 million recovery of previously incurred litigation fees and costs incurred by EMCORE within operating income as such represented the recovery of previously incurred legal expenses. See Note 5 - Discontinued Operations . We enter into indemnification agreements with each of our directors and executive officers pursuant to which we agree to indemnify them for certain potential expenses and liabilities arising from their status as a director or executive officer of the Company. We maintain director and officer insurance, which may cover certain liabilities arising from our obligation to indemnify our directors and executive officers in certain circumstances. It is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Legal Proceedings : We are subject to various legal proceedings, claims, and litigation, either asserted or unasserted, that arise in the ordinary course of business. The outcome of these matters is currently not determinable and we are unable to estimate a range of loss, should a loss occur, from these proceedings. The ultimate outcome of legal proceedings involves judgments, estimates and inherent uncertainties and 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 on February 26, 2018, the Court entered final judgment. The settlement amount of $0.3 million was paid in May 2018 . There remains no outstanding liability related to the settlement as of September 30, 2018 . During the fiscal year ended September 30, 2017 , 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 . d) Phoenix Navigation Components, LLC Legal Proceedings On June 12, 2018, Phoenix Navigation Components, LLC (“Phoenix”) commenced an arbitration against EMCORE with the American Arbitration Association (“AAA”) in New York. On August 31, 2018, Phoenix filed a First Amended Demand for Arbitration, asserting the following claims: breach of contract, breach of the covenant of good faith and fair dealing, misappropriation of trade secrets (under the Defend Trade Secrets Act, 18 U.S.C. § 1836, and New York law), conversion, unjust enrichment, correction of inventorship relating to U.S. Patent No. 8,773,665, and declaratory relief, relating to EMCORE’s termination of certain agreements entered into between EMCORE and Phoenix related to the purported license of certain intellectual property related to fiber optic gyroscope technology and disputed royalty payments related thereto. On September 14, 2018, EMCORE filed an Answering Statement and Counterclaim, denying all of Phoenix’s claims and asserting counterclaims for breach of the implied covenant of good faith and fair dealing and declaratory relief. An arbitration hearing on all claims with the exception of the patent claims has been set for January 8, 2019. A second arbitration hearing on the patent claims has been set for May 20, 2019. We believe that the claims asserted by Phoenix are without merit and we intend to vigorously defend ourselves against them. On June 21, 2018, Phoenix Navigation Components, LLC commenced a special proceeding against EMCORE in the New York Supreme Court, Commercial Division, Index No. 653128/2018. As part of the special proceeding, Phoenix filed an application for a preliminary injunction in aid of arbitration pursuant to CLPR 7502(c), in connection with the AAA arbitration proceeding in New York. On August 6, 2018, Phoenix’s application was resolved pursuant to a stipulation between EMCORE and Phoenix. This special proceeding remains open pending resolution of the AAA arbitration. On September 18, 2018, EMCORE filed a complaint against Phoenix in the United States District Court for the Central District of California seeking a declaratory judgment with respect to U.S. Patent No. 8,773,665. On October 19, 2018, Phoenix filed a Motion to Stay Pending Arbitration or to Dismiss the Complaint. |
Equity
Equity | 12 Months Ended |
Sep. 30, 2018 | |
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 fiscal year ended September 30, 2018 : 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 (6,392 ) $4.37 $ 15 Forfeited (6,407 ) $4.60 Expired (244,019 ) $24.57 Outstanding as of September 30, 2018 69,980 $4.74 5.11 $ 31 Exercisable as of September 30, 2018 46,886 $4.76 4.11 $ 23 Vested and expected to vest as of September 30, 2018 69,980 $4.74 5.11 $ 45 (*) Intrinsic value for stock options represents the “in-the-money” portion or the positive variance between a stock option's exercise price and the underlying stock price. For the fiscal years ended September 30, 2017 and 2016, the intrinsic value of options exercised was $0.9 million and $87,000 , respectively. As of September 30, 2018 , 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 2.0 years . Valuation Assumptions There were no stock option grants for the fiscal years ended September 30, 2018 and 2017 . 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 fiscal year ended September 30, 2018 : 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 648,043 $5.80 — $0.00 Vested (374,969 ) $5.40 — $0.00 Forfeited (39,537 ) $5.23 — $0.00 Non-vested as of September 30, 2018 1,011,621 $6.04 8,154 $8.20 As of September 30, 2018 , there was approximately $5.0 million of remaining unamortized stock-based compensation expense associated with RSUs, which will be expensed over a weighted average remaining service period of approximately 2.9 years. The 1.0 million outstanding non-vested and expected to vest RSUs have an aggregate intrinsic value of approximately $4.8 million and a weighted average remaining contractual term of 1.7 years. For fiscal years ended September 30, 2018 , 2017 and 2016 , the intrinsic value of RSUs vested was approximately $2.3 million , $3.4 million and $1.6 million , respectively. For the fiscal years ended September 30, 2017 and 2016, the weighted average grant date fair value of RSUs granted was $8.20 and $5.53 per share, respectively. As of September 30, 2018 , there was approximately $45,000 of remaining unamortized stock-based compensation expense associated with RSAs, which will be expensed over a weighted average remaining service period of approximately 2.0 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 (now co-VP, Broadband), 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 fiscal year ended September 30, 2018 : 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 Forfeited (5,037 ) $13.36 — $0.00 Non-vested as of September 30, 2018 397,777 $8.48 33,333 $12.25 As of September 30, 2018 , there was approximately $1.5 million of remaining unamortized stock-based compensation expense associated with PSUs, which will be expensed over a weighted average remaining service period of approximately 1.3 years. The 0.4 million outstanding non-vested and expected to vest PSUs have an aggregate intrinsic value of approximately $1.9 million and a weighted average remaining contractual term of 1.3 years. For the fiscal year ended September 30, 2018 , the intrinsic value of PSUs vested was approximately $1.4 million . There were no PSUs vested in the fiscal years ended September 30, 2017 and 2016 . For the fiscal year ended September 30, 2017 , the weighted average grant date fair value of PSUs granted was $8.34 . There was no PSUs granted in the fiscal year ended September 30, 2016 . As of September 30, 2018 , there was approximately $0.3 million of remaining unamortized stock-based compensation expense associated with PRSAs, which will be expensed over a weighted average remaining service period of approximately 1.0 year . 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 . Included in the 240,164 PSUs granted and 166,058 PSUs vested during the fiscal year ended September 30, 2018 are 67,664 PSUs that vested at more than 100% of the target PSUs upon vesting. Stock-based compensation The effect of recording stock-based compensation expense was as follows: Stock-based Compensation Expense - by award type For the Fiscal Years Ended September 30, (in thousands) 2018 2017 2016 Employee stock options $ 32 $ 45 $ 38 Restricted stock units and awards 1,742 1,643 1,683 Performance stock units and awards 1,343 1,367 — Employee stock purchase plan 276 300 223 Outside director equity awards and fees in common stock 255 247 218 Total stock-based compensation expense $ 3,648 $ 3,602 $ 2,162 Stock-based Compensation Expense - by expense type For the Fiscal Years ended September 30, (in thousands) 2018 2017 2016 Cost of revenue $ 450 $ 492 $ 345 Selling, general, and administrative 2,584 2,605 1,445 Research and development 614 505 372 Total stock-based compensation expense $ 3,648 $ 3,602 $ 2,162 For the fiscal year ended September 30, 2017, total stock-based compensation expense did not agree with the amount listed on our statements of shareholders' equity due to the timing difference between the expense accrued and the issuance of common stock for the payment of outside directors' fees. For the fiscal year ended September 30, 2016, total stock-based compensation expense did not agree with the amount listed on our statements of shareholders' equity primarily due to the timing difference between the expense accrued and the issuance of common stock for the payment of outside directors' fees and due to reclassification of stock-based compensation expense related to discontinued operations. The stock-based compensation expense above relates to continuing operations. Stock-based compensation within selling, general and administrative expense was higher for the fiscal year ended September 30, 2017 due to stock-based compensation expense associated with the grants of PSUs and PRSAs. Included within discontinued operations is $0 , $0 and $(77,000) of stock-based compensation expense for the fiscal year ended September 30, 2018 , 2017 and 2016 , respectively. Capital Stock Our authorized capital stock consists of 50 million shares of common stock, no par value, and 5,882,000 shares of preferred stock, $0.0001 par value. As of September 30, 2018 , we had 34.5 million and 27.6 million shares of common stock issued and outstanding, respectively. There were no shares of preferred stock issued or outstanding as of September 30, 2018 and 2017 . 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 fiscal years ended September 30, 2018 , 2017 and 2016 was approximately $0.5 million , $0.5 million and $0.4 million , respectively. (Loss) Income 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 Fiscal Years Ended September 30, (in thousands, except per share) 2018 2017 2016 Numerator: (Loss) income from continuing operations $ (17,453 ) $ 8,221 $ 2,619 Loss from discontinued operations — 14 5,647 Undistributed earnings allocated to common shareholders for basic and diluted net income per share (17,453 ) 8,235 8,266 Denominator: Denominator for basic net income per share - weighted average shares outstanding 27,266 26,659 25,979 Dilutive options outstanding, unvested stock units, unvested stock awards and ESPP — 885 539 Denominator for diluted net income per share - adjusted weighted average shares outstanding 27,266 27,544 26,518 Net (loss) income per basic share: Continuing operations $ (0.64 ) $ 0.31 $ 0.10 Discontinued operations — 0.00 0.22 Net (loss) income per basic share $ (0.64 ) $ 0.31 $ 0.32 Net (loss) income per diluted share: Continuing operations $ (0.64 ) $ 0.30 $ 0.10 Discontinued operations — 0.00 0.21 Net (loss) income per diluted share $ (0.64 ) $ 0.30 $ 0.31 Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation 949 398 508 Average market price of common stock $ 5.87 $ 8.92 $ 5.88 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 fiscal year ended September 30, 2018 due to the Company incurring a net loss for the period. For the fiscal year ended September 30, 2017 , we excluded 0.4 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. For the fiscal year ended September 30, 2016 we excluded 0.5 million of weighted average outstanding stock options and RSUs 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 approximately 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 . Per the amended ESPP, the total number of shares of common stock on which options may be granted under the ESPP are 3,250,000 shares. With the special dividend paid in July 2016, the total number of shares of common stock on which options may be granted under the ESPP were increased by 265,574 shares to a total of 3,515,574 shares. We issue new shares of common stock to satisfy the issuance of shares under this stock-based compensation plan. Common stock issued under the ESPP during the fiscal years ended September 30, 2018 , 2017 and 2016 totaled 171,000 , 133,000 and 193,000 shares, respectively. As of September 30, 2018 , the total amount of common stock issued under the ESPP totaled 2,775,016 shares and the total shares remaining available for issuance under the ESPP totaled 740,558 . Future Issuances As of September 30, 2018 , 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 69,980 Unvested restricted stock units 1,011,621 Unvested performance stock units and awards (at 200% maximum payout) 862,220 Purchases under the employee stock purchase plan 740,558 Issuance of stock-based awards under the Equity Plans 1,474,701 Purchases under the officer and director share purchase plan 88,741 Total reserved 4,247,821 |
Geographical Information
Geographical Information | 12 Months Ended |
Sep. 30, 2018 | |
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, Fiber Optics. Revenue : The following tables set forth revenue by geographic region with revenue assigned to geographic regions based on our customers’ billing address. Revenue by Geographic Region For the Fiscal Years ended September 30, (in thousands) 2018 2017 2016 United States $ 69,543 $ 98,520 $ 66,436 Asia 10,386 16,713 17,401 Europe 5,422 7,015 7,618 Other 266 647 543 Total revenue $ 85,617 $ 122,895 $ 91,998 Significant Customers : Significant customers are defined as customers representing greater than 10% of our consolidated revenue. Revenue from two of our significant customers represented an aggregate of 60% of our consolidated revenue for the fiscal year ended September 30, 2018 . Revenue from three of our significant customers represented an aggregate of 71% and 61% of our consolidated revenue for the fiscal years ended September 30, 2017 and 2016 , respectively. Long-lived Assets : Long-lived assets consist of property, plant, and equipment. As of September 30, 2018 and 2017 , approximately 49% and 46% ,respectively, of our long-lived assets were located in the United States. The remaining long-lived assets are primarily located in China. |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information (unaudited) | Selected Quarterly Financial Information (unaudited) The following tables present our unaudited consolidated results of operations for the eight most recently ended quarters. We believe that all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts below to present fairly the selected quarterly information when read in conjunction with the consolidated financial statements and notes included elsewhere in this Annual Report. Our results from operations vary substantially from quarter to quarter. Accordingly, the operating results for a quarter are not necessarily indicative of results for any subsequent quarter or for the full year. We have experienced and expect to continue to experience significant fluctuations in quarterly results. EMCORE CORPORATION Quarterly Consolidated Statements of Operations For the Fiscal Year Ended September 30, 2018 (in thousands, except income per share) (unaudited) For the Three Months Ended December 31, March 31, June 30, September 30, 2017 2018 2018 2018 Revenue $ 24,036 $ 18,623 $ 17,717 $ 25,241 Cost of revenue 16,122 13,676 16,519 20,813 Gross profit 7,914 4,947 1,198 4,428 Operating expense (income): Selling, general, and administrative 4,819 5,644 5,237 5,532 Research and development 3,800 3,300 3,915 4,372 Loss from change in estimate on ARO obligation — — — 145 Loss (gain) on sale of assets 107 (68 ) — (5 ) Total operating expense 8,726 8,876 9,152 10,044 Operating loss (812 ) (3,929 ) (7,954 ) (5,616 ) Other income (expense): Interest income, net 111 163 216 243 Foreign exchange gain (loss) 286 526 (676 ) (570 ) Other income — — — 110 Total other income (expense) 397 689 (460 ) (217 ) Loss from continuing operations before income tax (expense) benefit (415 ) (3,240 ) (8,414 ) (5,833 ) Income tax benefit (expense) 333 169 — (53 ) Loss from continuing operations (82 ) (3,071 ) (8,414 ) (5,886 ) Loss from discontinued operations, net of tax — — — — Net income $ (82 ) $ (3,071 ) $ (8,414 ) $ (5,886 ) Per share data: Net income per basic share: Continuing operations $ (0.00 ) $ (0.11 ) $ (0.31 ) $ (0.21 ) Discontinued operations — — — — Net income per basic share $ (0.00 ) $ (0.11 ) $ (0.31 ) $ (0.21 ) Net income per diluted share: Continuing operations $ (0.00 ) $ (0.11 ) $ (0.31 ) $ (0.21 ) Discontinued operations — — — — Net income per diluted share $ (0.00 ) $ (0.11 ) $ (0.31 ) $ (0.21 ) Weighted-average number of basic and diluted shares outstanding 27,032 27,197 27,387 27,424 EMCORE CORPORATION Quarterly Consolidated Statements of Operations For the Fiscal Year Ended September 30, 2017 (in thousands, except income per share) (unaudited) For the Three Months Ended December 31, March 31, June 30, September 30, 2016 2017 2017 2017 Revenue $ 30,176 $ 32,591 $ 30,952 $ 29,176 Cost of revenue 20,133 21,553 20,110 18,565 Gross profit 10,043 11,038 10,842 10,611 Operating expense (income): Selling, general, and administrative 5,578 5,672 5,815 5,181 Research and development 2,199 3,141 3,340 3,862 Impairments — 468 — 38 Gain from change in estimate on ARO obligation — — — (45 ) Gain on sale of assets — — (322 ) (134 ) Total operating expense 7,777 9,281 8,833 8,902 Operating income 2,266 1,757 2,009 1,709 Other income (expense): Interest income, net 23 46 77 99 Foreign exchange (loss) gain (403 ) 44 53 388 Other income — — 316 — Total other (expense) income (380 ) 90 446 487 Income from continuing operations before income tax (expense) benefit 1,886 1,847 2,455 2,196 Income tax (expense) benefit (120 ) 8 (19 ) (32 ) Income from continuing operations 1,766 1,855 2,436 2,164 Loss from discontinued operations, net of tax (9 ) (7 ) (11 ) 41 Net income $ 1,757 $ 1,848 $ 2,425 $ 2,205 Per share data: Net income per basic share: Continuing operations $ 0.07 $ 0.07 $ 0.09 $ 0.08 Discontinued operations 0.00 0.00 0.00 0.00 Net income per basic share $ 0.07 $ 0.07 $ 0.09 $ 0.08 Net income per diluted share: Continuing operations $ 0.07 $ 0.07 $ 0.09 $ 0.08 Discontinued operations 0.00 0.00 0.00 0.00 Net income per diluted share $ 0.07 $ 0.07 $ 0.09 $ 0.08 Weighted-average number of basic shares outstanding 26,279 26,622 26,833 26,904 Weighted-average number of diluted shares outstanding 27,039 27,585 27,816 27,768 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation : Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the assets, liabilities, shareholders' equity, and operating results of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. We are not the primary beneficiary of, nor do we hold a significant variable interest in, any variable interest entity. |
Use of Estimates | Use of Estimates : The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, as of the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. The accounting estimates that require our most significant, difficult, and/or subjective judgments include: • the valuation of inventory; • the allowance for doubtful accounts; and, • the valuation allowance for deferred tax assets. We develop estimates based on historical experience and on various assumptions about the future that are believed to be reasonable based on the best information available to us. Our reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. |
Concentration of Credit Risk | Concentration of Credit Risk : Financial instruments that may subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Our cash and cash equivalents are held in safekeeping primarily with Wells Fargo. When necessary, we perform credit evaluations on our customers' financial condition and occasionally we request deposits in advance of shipping product to our customers. These financial evaluations require significant judgment and are based on a variety of factors including, but not limited to, current economic trends, historical payment patterns, bad debt write-off experience, and financial review of the particular customer. |
Cash and Cash Equivalents | Cash and Cash Equivalents : Cash and cash equivalents consists primarily of bank deposits and highly liquid short-term investments with a maturity of three months or less at the time of purchase. Cash consists primarily of bank deposits or highly liquid short-term investments with a maturity of three months or less at the time of purchase. |
Restricted Cash | Restricted Cash : Restricted cash represents recently deposited cash that is temporarily restricted by our bank in accordance with the terms of the outstanding credit facility. Restricted cash represents temporarily restricted deposits held as compensating balances against short-term borrowing arrangements. |
Accounts Receivable | Accounts Receivable : We regularly evaluate the collectability of our accounts receivable and maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to meet their financial obligations to us. The allowance is based on the age of receivables and a specific identification of receivables considered at risk of collection. We classify charges associated with the allowance for doubtful accounts as selling, general, and administrative expense. |
Inventory | Inventory : Inventory is stated at the lower of cost or net realizable value (first-in, first-out). Inventory that is expected to be used within the next 12 months is classified as current inventory. We write-down inventory once it has been determined that conditions exist that may not allow the inventory to be sold for its intended purpose or the inventory is determined to be excess or obsolete based on assumptions about future demand and market conditions. The charge related to inventory write-downs is recorded as a cost of revenue. We evaluate inventory levels at least quarterly against sales forecasts on a significant part-by-part basis, in addition to determining its overall inventory risk. We have incurred, and may in the future incur charges to write-down our inventory. See Note 8 - Inventory in the notes to the consolidated financial statements for additional information related to our inventory. |
Property, Plant and Equipment | Property, Plant, and Equipment : Our property, plant, and equipment are recorded at cost. Plant and equipment are depreciated on a straight-line basis over the following estimated useful lives of the assets: Description Estimated Useful Life Equipment three to ten years Furniture and fixtures five years Computer hardware and software five to seven years Leasehold improvements three to six years Leasehold improvements are amortized over the lesser of the asset life or the lease term. Expenditures for repairs and maintenance are charged to expense as incurred. The costs for major renewals and improvements are capitalized and depreciated over their estimated useful lives of the related asset. The cost and related accumulated depreciation of the assets are removed from the accounts upon disposition and any resulting gain or loss is reflected in the consolidated statement of operations and comprehensive income. |
Valuation of Long-lived Assets | Valuation of Long-lived Assets : Long-lived assets consist primarily of property, plant, and equipment, net. Since our long-lived assets are subject to amortization, we review these assets for impairment in accordance with the provisions of Accounting Standards Codification ("ASC") 360, Property, Plant, and Equipment. We review long-lived assets for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. Our impairment testing of long-lived assets consists of determining whether the carrying amount of the long-lived asset (asset group) is recoverable, in other words, whether the sum of the future undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group) exceeds its carrying amount. The determination of the existence of impairment involves judgments that are subjective in nature and may require the use of estimates in forecasting future results and cash flows related to an asset or group of assets. In making this determination, we use certain assumptions, including estimates of future cash flows expected to be generated by these assets, which are based on additional assumptions such as asset utilization, the length of service that assets will be used in our operations, and estimated salvage values. |
Asset Retirement and Environment Obligation | Asset Retirement and Environmental Obligations : Pursuant to ASC 410, Asset Retirement and Environmental Obligations , an asset retirement obligation (“ARO” or “AROs”) is recorded when there is a legal obligation associated with the retirement of a tangible long-lived asset and the fair value of the liability can reasonably be estimated. Upon initial recognition of an asset retirement obligation, a company increases the carrying amount of the long-lived asset by the same amount as the liability. Over time, the liabilities are accreted for the change in their present value through charges to operations costs. The initial capitalized costs are depleted over the useful lives of the related assets through charges to depreciation, and/or amortization. If the fair value of the estimated ARO changes, an adjustment is recorded to both the ARO and the asset retirement cost. Revisions in estimated liabilities can result from revisions of estimated inflation rates, escalating retirement costs, and changes in the estimated timing of settling ARO liabilities. We have known asset retirement conditions, such as certain asset decommissioning and restoration of rented facilities to be performed in the future. 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. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments : We determine the fair value of our financial instruments in accordance with ASC 820, Fair Value Measurements and Disclosures. ASC 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. |
Revenue Recognition | Revenue Recognition : Revenue is recognized upon shipment, provided persuasive evidence of a contract exists, the price is fixed, the product meets our customer's specifications, title and ownership have transferred to the customer, and there is reasonable assurance of collection of the sales proceeds. The majority of our products have shipping terms that are free on board or free carrier alongside (“FCA”) shipping point, which means that we fulfill our delivery obligation when the goods are handed over to the freight carrier at our shipping dock. This means the customer bears all costs and risks of loss or damage to the goods from that point. We account for shipping and related transportation costs by recording the charges that are invoiced to customers as revenue, with the corresponding cost recorded as cost of revenue. In those instances where inventory is maintained at a consigned location, revenue is recognized only when our customer pulls product for use and after title and ownership has transferred to the customer. Any warranty cost and remaining obligations that are inconsequential or perfunctory are accrued when the corresponding revenue is recognized. Distributors: We use a number of distributors around the world and recognize revenue upon shipment of product to these distributors. Title and risk of loss pass to the distributors upon shipment, and our distributors are contractually obligated to pay us on standard commercial terms, just like direct customers. We do not sell to our distributors on consignment and, except in the event of product discontinuance, do not give distributors a right of return. Contract Manufacturers: Prior to certain customers accepting product that is manufactured at one of our contract manufacturers, these customers require that they first qualify the product and manufacturing processes at our contract manufacturer. The customers' qualification process determines whether the product manufactured at our contract manufacturer achieves their quality, performance, and reliability standards. After a customer completes the initial qualification process, we receive approval to ship qualified product to that customer. As part of the manufacturing process at our contract manufacturers, the finished product is tested prior to shipment to the customer using the same criteria that our customer uses to test product it receives. Revenue is recognized upon shipment of customer-qualified product, provided persuasive evidence of a contract exists, the price is fixed, the product meets our customer's specifications, title and ownership have transferred to the customer, and there is reasonable assurance of collection of the sales proceeds. |
Product Warranty Reserves | Product Warranty Reserves : We provide our customers with limited rights of return for non-conforming shipments and warranty claims for certain products. Pursuant to ASC 450, Contingencies, we make estimates of product warranty expense using historical experience rates as a percentage of revenue and accrue estimated warranty expense as a cost of revenue. We estimate the costs of our warranty obligations based on historical experience of known product failure rates and anticipated rates of warranty claims, use of materials to repair or replace defective products, and service delivery costs incurred in correcting product issues. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. Should our actual experience relative to these factors differ from our estimates, we may be required to record additional warranty reserves. Alternatively, if we provide more reserves than needed, we may reverse a portion of such provisions in future periods. |
Research and Development | Research and Development : Research and development costs are charged as an expense when incurred. |
Stock-Based Compensation | Stock-Based Compensation : Stock-based compensation expense is measured at the stock option or award grant date, based on the fair value of the award, and is recorded to cost of revenue, sales, general, and administrative, and research and development expense based on an employee's responsibility and function over the requisite service period. We use the Black-Scholes option-pricing model or the Monte-Carlo lattice model and the straight-line attribution approach to determine the fair value of stock-based awards in accordance with ASU 2016-09, Compensation. These option-pricing models require the input of highly subjective assumptions, including the option's expected life, the expected volatility of the price of the Company’s common stock, risk-free interest rates and the expected dividend yield of the Company’s common stock. Stock-based compensation expense is reduced for forfeitures. |
Foreign Exchange | Foreign Exchange : We recognize gains and losses due to the effect of exchange rate changes on foreign currency primarily due to our operations in China. The assets and liabilities of our foreign operations are translated from their respective functional currencies into U.S. dollars at the rates in effect at the consolidated balance sheet dates, and the revenue and expense amounts are translated at the average rate during the applicable periods reflected on the consolidated statements of operations and comprehensive income. Foreign currency translation adjustments are recorded as other comprehensive income. Gains and losses from foreign currency transactions denominated in currencies other than the U.S. dollar, both realized and unrealized, are recorded as foreign exchange (loss) gain on our consolidated statements of operations and comprehensive income. |
Income Taxes | Income Taxes : In accordance with ASC 740, Income Taxes, deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. We record valuation allowances against all deferred tax assets for amounts which are not considered more likely to be realized. |
Income (Loss) Per Share | Income (Loss) Per Share : We are required, in periods in which we have net income, to calculate basic and diluted income per share using the two-class method. The two-class method is required because our unvested restricted stock awards are considered participating securities as these securities have the right to receive dividends or dividend equivalents should we declare dividends on our common stock. Under the two-class method, during periods of net income, net income is first reduced for distributions declared on all classes of securities to arrive at undistributed earnings. The undistributed earnings are then allocated on a pro-rata basis between the common shareholders and participating securities holders. The weighted-average number of common shares and participating securities outstanding during the period is then used to calculate basic and diluted income per share. In periods in which we have a net loss, basic loss per share is calculated by dividing the loss attributable to common shareholders by the weighted-average number of common shares outstanding during the period. |
Recent Accounting Pronouncements | There have been no recent accounting pronouncements or changes in accounting pronouncements that are of significance, or of potential significance, to us other than those discussed below: • In 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 standard is effective for annual periods, beginning after December 15, 2017 and interim periods within those annual periods. The new standard will be effective for our fiscal year beginning October 1, 2018 and early adoption is permitted. The Company does not expect the adoption of ASU 2017-09 will have a material impact on the Company’s consolidated financial statements. • In June 2016, the FASB issued ASU 2016-13 Financial Instruments - Credit Losses, Measurement of Credit Losses on Financial Instruments , which changes the way entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net earnings. The new standard is effective for annual periods beginning after December 15, 2019, including interim periods within those annual periods. The new standard will be effective for our fiscal year beginning October 1, 2020 and early adoption is permitted. We are evaluating the impact the adoption of the new standard will have on our consolidated financial statements and related disclosures. • 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. We are in the process of implementing changes to our systems and processes in conjunction with our review of lease agreements. Topic 842 will be effective for our fiscal year beginning October 1, 2019 and expect to elect certain available transitional practical expedients. Early adoption is permitted. As currently issued, entities are required to use 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. There are additional optional practical expedients that an entity may elect to apply. The Company is continuing to evaluate the effect of this update on its consolidated financial statements and related disclosures. • In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilitie s. This ASU amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, and supersedes the guidance to classify equity securities with readily determinable fair values into different categories (that is, trading or available-for-sale) and requires equity securities to be measured at fair value with changes in the fair value recognized through net income. This ASU is effective for annual and interim periods beginning after December 15, 2017. The new standard will be effective for our fiscal year beginning October 1, 2018. The Company does not anticipate the adoption will have a material impact on our 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 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, was effective for our fiscal year beginning October 1, 2018. The standard permits the use of either the full retrospective or modified retrospective method. We established a cross-functional implementation team to implement ASU 2014-09. We have substantially completed and implemented changes to our systems, processes and internal controls to meet the reporting and disclosure requirements upon adoption as of October 1, 2018 . 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 our evaluation completed, the Company believes that the pattern of revenue recognition for these revenue streams upon implementation 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. As of September 30, 2018 , the Company plans to adopt ASU 2014-09 utilizing a modified retrospective method on October 1, 2018 . |
Receivables | The allowance for doubtful accounts is based on the age of receivables and a specific identification of receivables considered at risk of collection. |
Expense Related to Severance and Restructuring Accruals | Expense related to severance and restructuring accruals is included in selling, general, and administrative expense on our statements of operations and comprehensive income. |
Professional Legal Fees | 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, Fiber Optics. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Life | Our property, plant, and equipment are recorded at cost. Plant and equipment are depreciated on a straight-line basis over the following estimated useful lives of the assets: Description Estimated Useful Life Equipment three to ten years Furniture and fixtures five years Computer hardware and software five to seven years Leasehold improvements three to six years The components of property, plant, and equipment, net consisted of the following: As of September 30, (in thousands) 2018 2017 Equipment $ 36,625 $ 31,507 Furniture and fixtures 1,109 1,109 Computer hardware and software 2,928 2,974 Leasehold improvements 2,049 2,330 Construction in progress 3,648 4,539 Property, plant, and equipment, gross $ 46,359 42,459 Accumulated depreciation (28,143 ) (25,824 ) Property, plant, and equipment, net $ 18,216 $ 16,635 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents, | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited consolidated balance sheets that sum to the total of the same amounts shown in the unaudited statements of consolidated cash flows: As of September 30, (in thousands) 2018 2017 2016 Cash $ 2,965 $ 8,054 $ 3,989 Cash equivalents $ 60,152 $ 60,279 $ 59,916 Restricted cash 78 421 965 Total cash, cash equivalents and restricted cash $ 63,195 68,754 64,870 |
Schedule of Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited consolidated balance sheets that sum to the total of the same amounts shown in the unaudited statements of consolidated cash flows: As of September 30, (in thousands) 2018 2017 2016 Cash $ 2,965 $ 8,054 $ 3,989 Cash equivalents $ 60,152 $ 60,279 $ 59,916 Restricted cash 78 421 965 Total cash, cash equivalents and restricted cash $ 63,195 68,754 64,870 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Photovoltaics Business | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of Discontinued Operations, Balance Sheet and Income Statement | The following table presents the statements of operations for the discontinued operations of the Photovoltaics Business: For the Fiscal Years Ended September 30, (in thousands) 2018 2017 2016 Revenue $ — $ — $ — Cost of revenue — 12 (159 ) Gross (loss) income — (12 ) 159 Operating expense (income) — 13 (868 ) (Loss) income from discontinued operations before income tax expense — (25 ) 1,027 Income tax benefit — — 20 (Loss) income from discontinued operations, net of tax $ — $ (25 ) $ 1,047 |
Digital Products Business | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of Discontinued Operations, Balance Sheet and Income Statement | The following table presents the statements of operations for the discontinued operations of the Digital Products Business: For the Fiscal Years Ended September 30, (in thousands) 2018 2017 2016 Revenue $ — $ — $ — Cost of revenue — — (500 ) Gross profit — — 500 Operating expense (income) — 2 (292 ) Recognition of previously deferred gain on sale of assets — — 3,804 Other income — 41 — Income from discontinued operations before income tax expense — 39 4,596 Income tax benefit — — 4 Income from discontinued operations, net of tax $ — $ 39 $ 4,600 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table summarizes changes in the allowance for doubtful accounts for the fiscal years ended September 30, 2018 , 2017 and 2016 . Allowance for Doubtful Accounts (in thousands) For the Fiscal Years ended September 30, 2018 2017 2016 Balance at beginning of period $ 22 $ 36 $ 462 Provision adjustment - expense, net of recoveries 599 23 23 Write-offs and other adjustments - deductions to receivable balances (73 ) (37 ) (449 ) Balance at end of period $ 548 $ 22 $ 36 The components of accounts receivable consisted of the following: As of September 30, (in thousands) 2018 2017 Accounts receivable, gross $ 19,823 $ 22,287 Allowance for doubtful accounts (548 ) (22 ) Accounts receivable, net $ 19,275 $ 22,265 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventory consisted of the following: As of September 30, (in thousands) 2018 2017 Raw materials $ 11,857 $ 15,826 Work in-process 5,402 6,586 Finished goods 5,024 5,413 Inventory balance at end of period $ 22,283 $ 27,825 Current portion $ 20,850 $ 25,139 Non-Current portion $ 1,433 $ 2,686 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, net (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Our property, plant, and equipment are recorded at cost. Plant and equipment are depreciated on a straight-line basis over the following estimated useful lives of the assets: Description Estimated Useful Life Equipment three to ten years Furniture and fixtures five years Computer hardware and software five to seven years Leasehold improvements three to six years The components of property, plant, and equipment, net consisted of the following: As of September 30, (in thousands) 2018 2017 Equipment $ 36,625 $ 31,507 Furniture and fixtures 1,109 1,109 Computer hardware and software 2,928 2,974 Leasehold improvements 2,049 2,330 Construction in progress 3,648 4,539 Property, plant, and equipment, gross $ 46,359 42,459 Accumulated depreciation (28,143 ) (25,824 ) Property, plant, and equipment, net $ 18,216 $ 16,635 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | The components of accrued expenses and other current liabilities consisted of the following: As of September 30, (in thousands) 2018 2017 Compensation $ 3,065 $ 3,904 Warranty 642 684 Professional fees 604 653 Customer deposits 22 20 Deferred revenue 368 — Income and other taxes 7,593 2,920 Severance and restructuring accruals 82 628 Other 1,829 1,016 Accrued expenses and other current liabilities $ 14,205 $ 9,825 |
Schedule of Restructuring and Related Costs | The following table summarizes the changes in the severance accrual account: (in thousands) Severance-related accruals Restructuring- related accruals Total Balance as of September 30, 2016 $ 642 $ — $ 642 Expense - charged to accrual 1,994 — 1,994 Payments and accrual adjustments (2,008 ) — (2,008 ) Balance as of September 30, 2017 628 — 628 Expense - charged to accrual 512 186 698 Payments and accrual adjustments (1,133 ) (111 ) (1,244 ) Balance as of September 30, 2018 $ 7 $ 75 $ 82 |
Schedule of Product Warranty Accruals | The following table summarizes the changes in our product warranty accrual accounts: Product Warranty Accruals For the Fiscal Years ended September 30, (in thousands) 2018 2017 2016 Balance at beginning of period $ 684 $ 871 $ 1,664 Provision for product warranty - expense 431 573 376 Adjustments and utilization of warranty accrual (473 ) (760 ) (1,169 ) Balance at end of period $ 642 $ 684 $ 871 |
Income and Other Taxes (Tables)
Income and Other Taxes (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
(Loss) Income from Continuing Operations before Income Taxes | The Company's income (loss) from continuing operations before income taxes consisted of the following: Income (loss) from continuing operations before income taxes For the Fiscal Years Ended September 30, (in thousands) 2018 2017 2016 Domestic $ (16,752 ) $ 10,632 $ 1,735 Foreign (1,150 ) (2,248 ) 898 Income (loss) from continuing operations before income taxes $ (17,902 ) $ 8,384 $ 2,633 |
Schedule of Components of Income Tax Expense (Benefit) | The Company's income tax (benefit) expense consisted of the following: Income tax (benefit) expense For the Fiscal Years Ended September 30, (in thousands) 2018 2017 2016 Federal: Current $ (502 ) $ 135 $ — Deferred — — — (502 ) 135 — State: Current 53 28 (117 ) Deferred — — — 53 28 (117 ) Foreign: Current — — 131 Deferred — — — — — 131 Total income tax (benefit) expense $ (449 ) $ 163 $ 14 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the provision for income taxes, with the amount computed by applying the statutory U.S. federal and state income tax rates to continuing operations income before provision for income taxes is as follows: Provision for Income Taxes For the Fiscal Years Ended September 30, (in thousands) 2018 2017 2016 Income tax benefit computed at U.S. federal statutory rate $ (4,346 ) $ 2,841 $ 896 State tax expense benefit, net of U.S. federal effect (168 ) 414 (41 ) Foreign tax rate differential 36 229 (94 ) Effect due to change in tax rate 57,988 2,528 626 Shortfall (windfall) from stock based compensation 681 (150 ) — Other 216 126 (57 ) State net operating loss carryforward adjustment (305 ) 933 685 Change in valuation allowance (54,551 ) (6,758 ) (2,001 ) Income tax (benefit) expense $ (449 ) $ 163 $ 14 Effective tax rate (2.5 )% 1.9 % 0.5 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets are as follows: Deferred Tax Assets As of September 30 (in thousands) 2018 2017 Deferred tax assets: Federal net operating loss carryforwards $ 91,639 $ 144,455 Foreign net operating loss carryforwards 1,301 587 Income tax credit carryforwards 2,671 3,211 Inventory reserves 2,065 2,037 Accounts receivable reserves 123 8 Accrued warranty reserve 144 249 State net operating loss carryforwards 4,624 4,525 Stock compensation 728 2,367 Deferred compensation 200 349 Fixed assets and intangibles (33 ) 136 Other 838 927 Total deferred tax assets 104,300 158,851 Valuation allowance (104,300 ) (158,851 ) Net deferred tax assets $ — $ — |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized gross tax benefits is as follows: Unrecognized Gross Tax Benefit (in thousands) Balance as of September 30, 2016 $ 288 Adjustments based on tax positions related to the current year 131 Adjustments based on tax positions of prior years — Balance as of September 30, 2017 419 Adjustments based on tax positions related to the current year — Adjustments based on tax positions of prior years — Balance as of September 30, 2018 $ 419 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of Stock Options Activity | The following table summarizes stock option activity under the Equity Plans for the fiscal year ended September 30, 2018 : 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 (6,392 ) $4.37 $ 15 Forfeited (6,407 ) $4.60 Expired (244,019 ) $24.57 Outstanding as of September 30, 2018 69,980 $4.74 5.11 $ 31 Exercisable as of September 30, 2018 46,886 $4.76 4.11 $ 23 Vested and expected to vest as of September 30, 2018 69,980 $4.74 5.11 $ 45 (*) Intrinsic value for stock options represents the “in-the-money” portion or the positive variance between a stock option's exercise price and the underlying stock price. For the fiscal years ended September 30, 2017 and 2016, the intrinsic value of options exercised was $0.9 million and $87,000 , respectively. |
Schedule of Restricted Stock Activity | The following table summarizes the activity related to RSUs and RSAs subject to time-based vesting requirements for fiscal year ended September 30, 2018 : 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 648,043 $5.80 — $0.00 Vested (374,969 ) $5.40 — $0.00 Forfeited (39,537 ) $5.23 — $0.00 Non-vested as of September 30, 2018 1,011,621 $6.04 8,154 $8.20 |
Schedule of Performance Share Activity | The following table summarizes the activity related to PSUs and PRSAs for the fiscal year ended September 30, 2018 : 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 Forfeited (5,037 ) $13.36 — $0.00 Non-vested as of September 30, 2018 397,777 $8.48 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 Fiscal Years Ended September 30, (in thousands) 2018 2017 2016 Employee stock options $ 32 $ 45 $ 38 Restricted stock units and awards 1,742 1,643 1,683 Performance stock units and awards 1,343 1,367 — Employee stock purchase plan 276 300 223 Outside director equity awards and fees in common stock 255 247 218 Total stock-based compensation expense $ 3,648 $ 3,602 $ 2,162 |
Schedule of Stock-based Compensation Expense - By Expense Type | Stock-based Compensation Expense - by expense type For the Fiscal Years ended September 30, (in thousands) 2018 2017 2016 Cost of revenue $ 450 $ 492 $ 345 Selling, general, and administrative 2,584 2,605 1,445 Research and development 614 505 372 Total stock-based compensation expense $ 3,648 $ 3,602 $ 2,162 |
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 Fiscal Years Ended September 30, (in thousands, except per share) 2018 2017 2016 Numerator: (Loss) income from continuing operations $ (17,453 ) $ 8,221 $ 2,619 Loss from discontinued operations — 14 5,647 Undistributed earnings allocated to common shareholders for basic and diluted net income per share (17,453 ) 8,235 8,266 Denominator: Denominator for basic net income per share - weighted average shares outstanding 27,266 26,659 25,979 Dilutive options outstanding, unvested stock units, unvested stock awards and ESPP — 885 539 Denominator for diluted net income per share - adjusted weighted average shares outstanding 27,266 27,544 26,518 Net (loss) income per basic share: Continuing operations $ (0.64 ) $ 0.31 $ 0.10 Discontinued operations — 0.00 0.22 Net (loss) income per basic share $ (0.64 ) $ 0.31 $ 0.32 Net (loss) income per diluted share: Continuing operations $ (0.64 ) $ 0.30 $ 0.10 Discontinued operations — 0.00 0.21 Net (loss) income per diluted share $ (0.64 ) $ 0.30 $ 0.31 Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation 949 398 508 Average market price of common stock $ 5.87 $ 8.92 $ 5.88 |
Schedule of Common Stock Reserved for Future Issuances | As of September 30, 2018 , 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 69,980 Unvested restricted stock units 1,011,621 Unvested performance stock units and awards (at 200% maximum payout) 862,220 Purchases under the employee stock purchase plan 740,558 Issuance of stock-based awards under the Equity Plans 1,474,701 Purchases under the officer and director share purchase plan 88,741 Total reserved 4,247,821 |
Geographical Information (Table
Geographical Information (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Region | The following tables set forth revenue by geographic region with revenue assigned to geographic regions based on our customers’ billing address. Revenue by Geographic Region For the Fiscal Years ended September 30, (in thousands) 2018 2017 2016 United States $ 69,543 $ 98,520 $ 66,436 Asia 10,386 16,713 17,401 Europe 5,422 7,015 7,618 Other 266 647 543 Total revenue $ 85,617 $ 122,895 $ 91,998 |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following tables present our unaudited consolidated results of operations for the eight most recently ended quarters. We believe that all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts below to present fairly the selected quarterly information when read in conjunction with the consolidated financial statements and notes included elsewhere in this Annual Report. Our results from operations vary substantially from quarter to quarter. Accordingly, the operating results for a quarter are not necessarily indicative of results for any subsequent quarter or for the full year. We have experienced and expect to continue to experience significant fluctuations in quarterly results. EMCORE CORPORATION Quarterly Consolidated Statements of Operations For the Fiscal Year Ended September 30, 2018 (in thousands, except income per share) (unaudited) For the Three Months Ended December 31, March 31, June 30, September 30, 2017 2018 2018 2018 Revenue $ 24,036 $ 18,623 $ 17,717 $ 25,241 Cost of revenue 16,122 13,676 16,519 20,813 Gross profit 7,914 4,947 1,198 4,428 Operating expense (income): Selling, general, and administrative 4,819 5,644 5,237 5,532 Research and development 3,800 3,300 3,915 4,372 Loss from change in estimate on ARO obligation — — — 145 Loss (gain) on sale of assets 107 (68 ) — (5 ) Total operating expense 8,726 8,876 9,152 10,044 Operating loss (812 ) (3,929 ) (7,954 ) (5,616 ) Other income (expense): Interest income, net 111 163 216 243 Foreign exchange gain (loss) 286 526 (676 ) (570 ) Other income — — — 110 Total other income (expense) 397 689 (460 ) (217 ) Loss from continuing operations before income tax (expense) benefit (415 ) (3,240 ) (8,414 ) (5,833 ) Income tax benefit (expense) 333 169 — (53 ) Loss from continuing operations (82 ) (3,071 ) (8,414 ) (5,886 ) Loss from discontinued operations, net of tax — — — — Net income $ (82 ) $ (3,071 ) $ (8,414 ) $ (5,886 ) Per share data: Net income per basic share: Continuing operations $ (0.00 ) $ (0.11 ) $ (0.31 ) $ (0.21 ) Discontinued operations — — — — Net income per basic share $ (0.00 ) $ (0.11 ) $ (0.31 ) $ (0.21 ) Net income per diluted share: Continuing operations $ (0.00 ) $ (0.11 ) $ (0.31 ) $ (0.21 ) Discontinued operations — — — — Net income per diluted share $ (0.00 ) $ (0.11 ) $ (0.31 ) $ (0.21 ) Weighted-average number of basic and diluted shares outstanding 27,032 27,197 27,387 27,424 EMCORE CORPORATION Quarterly Consolidated Statements of Operations For the Fiscal Year Ended September 30, 2017 (in thousands, except income per share) (unaudited) For the Three Months Ended December 31, March 31, June 30, September 30, 2016 2017 2017 2017 Revenue $ 30,176 $ 32,591 $ 30,952 $ 29,176 Cost of revenue 20,133 21,553 20,110 18,565 Gross profit 10,043 11,038 10,842 10,611 Operating expense (income): Selling, general, and administrative 5,578 5,672 5,815 5,181 Research and development 2,199 3,141 3,340 3,862 Impairments — 468 — 38 Gain from change in estimate on ARO obligation — — — (45 ) Gain on sale of assets — — (322 ) (134 ) Total operating expense 7,777 9,281 8,833 8,902 Operating income 2,266 1,757 2,009 1,709 Other income (expense): Interest income, net 23 46 77 99 Foreign exchange (loss) gain (403 ) 44 53 388 Other income — — 316 — Total other (expense) income (380 ) 90 446 487 Income from continuing operations before income tax (expense) benefit 1,886 1,847 2,455 2,196 Income tax (expense) benefit (120 ) 8 (19 ) (32 ) Income from continuing operations 1,766 1,855 2,436 2,164 Loss from discontinued operations, net of tax (9 ) (7 ) (11 ) 41 Net income $ 1,757 $ 1,848 $ 2,425 $ 2,205 Per share data: Net income per basic share: Continuing operations $ 0.07 $ 0.07 $ 0.09 $ 0.08 Discontinued operations 0.00 0.00 0.00 0.00 Net income per basic share $ 0.07 $ 0.07 $ 0.09 $ 0.08 Net income per diluted share: Continuing operations $ 0.07 $ 0.07 $ 0.09 $ 0.08 Discontinued operations 0.00 0.00 0.00 0.00 Net income per diluted share $ 0.07 $ 0.07 $ 0.09 $ 0.08 Weighted-average number of basic shares outstanding 26,279 26,622 26,833 26,904 Weighted-average number of diluted shares outstanding 27,039 27,585 27,816 27,768 |
Description of Business (Busine
Description of Business (Business Overview) (Details) | 12 Months Ended |
Sep. 30, 2018product_linessegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reporting segments | segment | 1 |
Number of product lines | product_lines | 3 |
Description of Business (Sale o
Description of Business (Sale of Photovoltaics and Digital Products Business) (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Millions | Sep. 30, 2015 | Apr. 17, 2015 | Apr. 16, 2015 | Jan. 02, 2015 |
Photovoltaics Business | Photovoltaics | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Asset purchase agreement, selling price | $ 149.9 | |||
Digital Products Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Asset purchase agreement, selling price | $ 17.5 | |||
Asset sale, promissory note, principal amount, post-adjustment | $ 15.5 | $ 15.5 | $ 1.5 | |
Asset sale, promissory note, principal amount, pre-adjustment | $ 16 | |||
Accrued interest on note receivable | $ 0.2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Estimated Useful Life) (Details) | 12 Months Ended |
Sep. 30, 2018 | |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Computer hardware and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Computer hardware and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 6 years |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements and U.S. Tax Reform (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2018USD ($) | |
Accounting Policies [Abstract] | |
U.S. Statutory Federal Rate | 25.00% |
Tax benefit, Tax Cuts and Jobs Act | $ 0.5 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Cash and Cash Equivalents [Abstract] | ||||
Cash | $ 2,965 | $ 8,054 | $ 3,989 | |
Cash equivalents | 60,152 | 60,279 | 59,916 | |
Restricted cash | 78 | 421 | 965 | |
Total cash, cash equivalents and restricted cash | $ 63,195 | $ 68,754 | $ 64,870 | $ 112,260 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) | Dec. 22, 2015 | Dec. 31, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Payments to terminate lease agreement | $ 200,000 | ||||
Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of venture | $ 700,000 | ||||
Book value of outstanding receivables | $ 0 | ||||
Incentive tax credits | 400,000 | ||||
Payments to terminate lease agreement | $ 200,000 | 200,000 | |||
Gain on lease termination | 300,000 | ||||
New Mexico | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Incentive tax credits | $ 0 | $ 0 | |||
Sumitomo Electric Industries, LTD | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on settlement | 3,400,000 | ||||
Sumitomo Electric Industries, LTD | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Write off of loss accrual | 400,000 | ||||
Gain on settlement | $ 3,800,000 |
Discontinued Operations (Income
Discontinued Operations (Income Statements) (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Photovoltaics Business | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenue | $ 0 | $ 0 | $ 0 |
Cost of revenue | 0 | 12 | (159) |
Gross profit | 0 | (12) | 159 |
Operating expense (income) | 0 | 13 | (868) |
Income from discontinued operations before income tax expense | 0 | (25) | 1,027 |
Income tax benefit (expense) | 0 | 0 | 20 |
Income from discontinued operations, net of tax | 0 | (25) | 1,047 |
Digital Products Business | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenue | 0 | 0 | 0 |
Cost of revenue | 0 | 0 | (500) |
Gross profit | 0 | 0 | 500 |
Operating expense (income) | 0 | 2 | (292) |
Recognition of previously deferred gain on sale of assets | 0 | 0 | 3,804 |
Other income | 0 | 41 | 0 |
Income from discontinued operations before income tax expense | 0 | 39 | 4,596 |
Income tax benefit (expense) | 0 | 0 | 4 |
Income from discontinued operations, net of tax | $ 0 | $ 39 | $ 4,600 |
Accounts Receivable (Schedule o
Accounts Receivable (Schedule of Components of Accounts Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Receivables [Abstract] | ||
Accounts receivable, gross | $ 19,823 | $ 22,287 |
Allowance for doubtful accounts | (548) | (22) |
Accounts receivable, net | $ 19,275 | $ 22,265 |
Accounts Receivable (Allowance
Accounts Receivable (Allowance for Doubtful Accounts Rollforward) (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018USD ($)customers | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of period | $ 22 | $ 36 | $ 462 |
Provision adjustment - expense, net of recoveries | 599 | 23 | 23 |
Write-offs and other adjustments - deductions to receivable balances | (73) | (37) | (449) |
Balance at end of period | 548 | 22 | 36 |
Reserve on accounts receivable | $ 599 | $ 23 | $ 23 |
Number of customer account balances determined uncertain for collectability | customers | 2 | ||
Customer Accounts With Uncertainty For Total Collectability | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Reserve on accounts receivable | $ 500 |
Inventory (Schedule of Componen
Inventory (Schedule of Components of Inventory) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 11,857 | $ 15,826 |
Work in-process | 5,402 | 6,586 |
Finished goods | 5,024 | 5,413 |
Inventory balance at end of period | 22,283 | 27,825 |
Current portion | 20,850 | 25,139 |
Non-Current portion | 1,433 | $ 2,686 |
Inventory reserve | $ 1,000 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, net (Schedule of Property, Plant, and Equipment) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 46,359 | $ 42,459 |
Accumulated depreciation | (28,143) | (25,824) |
Property, plant, and equipment, net | 18,216 | 16,635 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 36,625 | 31,507 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 1,109 | 1,109 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 2,928 | 2,974 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 2,049 | 2,330 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 3,648 | $ 4,539 |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment, net (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | ||||||||
Depreciation | $ 5,600 | $ 3,700 | $ 2,400 | |||||
Net book value, equipment no longer to be utilized | $ 600 | $ 600 | ||||||
Proceeds from disposal of property, plant and equipment | $ 100 | 82 | 474 | 100 | ||||
Impairments of equipment | $ 38 | $ 0 | $ 468 | $ 0 | $ 0 | $ 506 | $ 0 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Schedule of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Payables and Accruals [Abstract] | ||
Compensation | $ 3,065 | $ 3,904 |
Warranty | 642 | 684 |
Professional fees | 604 | 653 |
Customer deposits | 22 | 20 |
Deferred revenue | 368 | 0 |
Income and other taxes | 7,593 | 2,920 |
Severance and restructuring accruals | 82 | 628 |
Other | 1,829 | 1,016 |
Accrued expenses and other current liabilities | $ 14,205 | $ 9,825 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities (Severance and Restructuring Accruals) (Narrative) (Details) | Jun. 07, 2016USD ($) | Mar. 31, 2018employee | Mar. 31, 2017employee | Nov. 30, 2016employee | May 31, 2016employee | Dec. 31, 2015USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)employee | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) |
Payables and Accruals [Line Items] | ||||||||||
Payments to terminate lease agreement | $ 200,000 | |||||||||
Expense - charged to accrual | $ 698,000 | $ 1,994,000 | ||||||||
Employee Severance | ||||||||||
Payables and Accruals [Line Items] | ||||||||||
Restructuring costs | 400,000 | |||||||||
Expense - charged to accrual | 512,000 | 1,994,000 | ||||||||
Restructuring- related accruals | ||||||||||
Payables and Accruals [Line Items] | ||||||||||
Expense - charged to accrual | $ 186,000 | 0 | ||||||||
Satellite Communications Assembly Operations | Employee Severance | ||||||||||
Payables and Accruals [Line Items] | ||||||||||
Number of positions eliminated | employee | 5 | 30 | ||||||||
Restructuring costs | 200,000 | 300,000 | ||||||||
Water Fabrication Lab | ||||||||||
Payables and Accruals [Line Items] | ||||||||||
Number of positions eliminated | employee | 14 | |||||||||
Water Fabrication Lab | Employee Severance | ||||||||||
Payables and Accruals [Line Items] | ||||||||||
Number of positions eliminated | employee | 72 | |||||||||
Restructuring costs | 100,000 | |||||||||
Workforce Reduction | Employee Severance | ||||||||||
Payables and Accruals [Line Items] | ||||||||||
Number of positions eliminated | employee | 6 | |||||||||
Restructuring costs | $ 400,000 | |||||||||
New Manufacturing Facility in China | Employee Severance | ||||||||||
Payables and Accruals [Line Items] | ||||||||||
Number of positions eliminated | employee | 265 | |||||||||
Restructuring costs | 500,000 | |||||||||
Ivyland, Pennsylvania Location Closure | Employee Severance | ||||||||||
Payables and Accruals [Line Items] | ||||||||||
Number of positions eliminated | employee | 11 | |||||||||
Restructuring costs | $ 300,000 | |||||||||
Ivyland, Pennsylvania Location Closure | Restructuring- related accruals | ||||||||||
Payables and Accruals [Line Items] | ||||||||||
Expense - charged to accrual | $ 200,000 | |||||||||
Alignment Towards Chip Devices and Navigation Systems | ||||||||||
Payables and Accruals [Line Items] | ||||||||||
Number of positions eliminated | employee | 21 | |||||||||
Alignment Towards Chip Devices and Navigation Systems | Employee Severance | ||||||||||
Payables and Accruals [Line Items] | ||||||||||
Restructuring costs | $ 400,000 | |||||||||
Discontinued Operations, Disposed of by Sale | ||||||||||
Payables and Accruals [Line Items] | ||||||||||
Payments to terminate lease agreement | $ 200,000 | 200,000 | ||||||||
Gain on lease termination | 300,000 | |||||||||
Chief Financial Officer | ||||||||||
Payables and Accruals [Line Items] | ||||||||||
Continuation of base salary, period | 448 days | |||||||||
Continuation of benefits, period | 16 months | |||||||||
Outplacement services, period | 1 year | |||||||||
Outplacement services | $ 15,000 | |||||||||
Estimated charge related to separation agreement | $ 400,000 |
Accrued Expenses and Other Cu_5
Accrued Expenses and Other Current Liabilities (Schedule of Restructuring and Related Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | $ 628 | $ 642 |
Expense - charged to accrual | 698 | 1,994 |
Payments and accrual adjustments | (1,244) | (2,008) |
Ending Balance | 82 | 628 |
Severance-related accruals | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 628 | 642 |
Expense - charged to accrual | 512 | 1,994 |
Payments and accrual adjustments | (1,133) | (2,008) |
Ending Balance | 7 | 628 |
Restructuring- related accruals | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0 | 0 |
Expense - charged to accrual | 186 | 0 |
Payments and accrual adjustments | (111) | 0 |
Ending Balance | $ 75 | $ 0 |
Accrued Expenses and Other Cu_6
Accrued Expenses and Other Current Liabilities (Schedule of Product Warranty Accruals) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance at beginning of period | $ 684 | $ 871 | $ 1,664 |
Provision for product warranty - expense | 431 | 573 | 376 |
Adjustments and utilization of warranty accrual | (473) | (760) | (1,169) |
Balance at end of period | $ 642 | $ 684 | $ 871 |
Credit Facilities (Narrative) (
Credit Facilities (Narrative) (Details) - Revolving Credit Facility | Jul. 27, 2017 | Nov. 29, 2018USD ($)letter_of_credit | Sep. 30, 2018USD ($)letter_of_credit |
Line of Credit Facility [Line Items] | |||
Liquidity requirement, minimum | $ 25,000,000,000,000 | ||
Long-term line of credit | 0 | ||
Subsequent Event | |||
Line of Credit Facility [Line Items] | |||
Long-term line of credit | $ 0 | ||
Ninth Amendment | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
Tenth Amendment | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 15,000,000 | ||
LIBOR Rate Loan | |||
Line of Credit Facility [Line Items] | |||
Standby letters of credit, total amount outstanding | $ 500,000 | ||
Number of standby letters of credit outstanding | letter_of_credit | 1 | ||
Remaining borrowing capacity | $ 7,300,000 | ||
LIBOR Rate Loan | Subsequent Event | |||
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 (Schedul
Income and Other Taxes (Schedule of Income (Loss) Before Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ (16,752) | $ 10,632 | $ 1,735 | ||||||||
Foreign | (1,150) | (2,248) | 898 | ||||||||
Income (loss) from continuing operations before income taxes | $ (5,833) | $ (8,414) | $ (3,240) | $ (415) | $ 2,196 | $ 2,455 | $ 1,847 | $ 1,886 | $ (17,902) | $ 8,384 | $ 2,633 |
Income and Other Taxes (Income
Income and Other Taxes (Income Tax Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Federal: | |||||||||||
Current | $ (502) | $ 135 | $ 0 | ||||||||
Deferred | 0 | 0 | 0 | ||||||||
Federal income tax expense (benefit) | (502) | 135 | 0 | ||||||||
State: | |||||||||||
Current | 53 | 28 | (117) | ||||||||
Deferred | 0 | 0 | 0 | ||||||||
State and local income tax expense (benefit) | 53 | 28 | (117) | ||||||||
Foreign: | |||||||||||
Current | 0 | 0 | 131 | ||||||||
Deferred | 0 | 0 | 0 | ||||||||
Foreign income tax expense (benefit) | 0 | 0 | 131 | ||||||||
Total income tax (benefit) expense | $ 53 | $ 0 | $ (169) | $ (333) | $ 32 | $ 19 | $ (8) | $ 120 | $ (449) | $ 163 | $ 14 |
Income and Other Taxes (Provisi
Income and Other Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax benefit computed at U.S. federal statutory rate | $ (4,346) | $ 2,841 | $ 896 | ||||||||
State tax expense benefit, net of U.S. federal effect | (168) | 414 | (41) | ||||||||
Foreign tax rate differential | 36 | 229 | (94) | ||||||||
Effect due to change in tax rate | 57,988 | 2,528 | 626 | ||||||||
Shortfall (windfall) from stock based compensation | 681 | (150) | 0 | ||||||||
Other | 216 | 126 | (57) | ||||||||
State net operating loss carryforward adjustment | (305) | 933 | 685 | ||||||||
Change in valuation allowance | (54,551) | (6,758) | (2,001) | ||||||||
Total income tax (benefit) expense | $ 53 | $ 0 | $ (169) | $ (333) | $ 32 | $ 19 | $ (8) | $ 120 | $ (449) | $ 163 | $ 14 |
Effective tax rate | (2.50%) | 1.90% | 0.50% |
Income and Other Taxes (Deferre
Income and Other Taxes (Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Income Tax Disclosure [Abstract] | ||
Federal net operating loss carryforwards | $ 91,639 | $ 144,455 |
Foreign net operating loss carryforwards | 1,301 | 587 |
Income tax credit carryforwards | 2,671 | 3,211 |
Inventory reserves | 2,065 | 2,037 |
Accounts receivable reserves | 123 | 8 |
Accrued warranty reserve | 144 | 249 |
State net operating loss carryforwards | 4,624 | 4,525 |
Stock compensation | 728 | 2,367 |
Deferred compensation | 200 | 349 |
Fixed assets and intangibles | (33) | 136 |
Other | 838 | 927 |
Total deferred tax assets | 104,300 | 158,851 |
Valuation allowance | (104,300) | (158,851) |
Net deferred tax assets | $ 0 | $ 0 |
Income and Other Taxes (Narrati
Income and Other Taxes (Narrative) (Details) - USD ($) | Jan. 01, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Operating Loss Carryforwards [Line Items] | ||||||||||||
Income tax benefit (expense) | $ (53,000) | $ 0 | $ 169,000 | $ 333,000 | $ (32,000) | $ (19,000) | $ 8,000 | $ (120,000) | $ 449,000 | $ (163,000) | $ (14,000) | |
Income tax benefit, discontinued operations | $ 0 | $ 0 | $ 24,000 | |||||||||
Effective tax rate | (2.50%) | 1.90% | 0.50% | |||||||||
Tax Cuts and Jobs Act, decrease in net deferred tax assets | $ 58,000,000 | 58,000,000 | ||||||||||
Tax Cuts and Jobs Act, tax expense | $ 500,000 | |||||||||||
Adjustments based on tax positions related to the current year | 0 | $ 131,000 | ||||||||||
Decrease in unrecognized tax benefits | $ 100,000 | |||||||||||
Income tax penalties and interest accrued | 400,000 | $ 300,000 | 400,000 | $ 300,000 | ||||||||
Operating loss carryforward portion subject limitation | 219,500,000 | 219,500,000 | ||||||||||
Operating loss carryforward portion not subject to limitation | 216,900,000 | 216,900,000 | ||||||||||
Internal Revenue Service (IRS) | ||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||
Operating loss carryforwards | 436,400,000 | 436,400,000 | ||||||||||
Foreign Tax Authority | ||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||
Operating loss carryforwards | 5,200,000 | 5,200,000 | ||||||||||
State and Local Jurisdiction | ||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||
Operating loss carryforwards | 53,000,000 | 53,000,000 | ||||||||||
Continuing Operations | ||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||
Decrease in unrecognized tax benefits | 112,800 | |||||||||||
Discontinued Operations | ||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||
Decrease in unrecognized tax benefits | 12,000 | |||||||||||
Income tax credits and adjustments | $ 400,000 | |||||||||||
Foreign Income and Research And Development Credit | ||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||
Tax credit carryforward | $ 2,700,000 | $ 2,700,000 |
Income and Other Taxes (Unrecog
Income and Other Taxes (Unrecognized Gross Tax Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Unrecognized Gross Tax Benefit | ||
Beginning balance | $ 419 | $ 288 |
Adjustments based on tax positions related to the current year | 0 | 131 |
Adjustments based on tax positions of prior years | 0 | 0 |
Ending balance | $ 419 | $ 419 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) | Jan. 06, 2017USD ($) | Sep. 23, 2014USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2012USD ($) | Sep. 30, 2018USD ($)building | Sep. 30, 2017USD ($)building | Sep. 30, 2016USD ($) | May 31, 2018USD ($) | May 31, 2016 |
Loss Contingencies [Line Items] | ||||||||||
Estimated future minimum lease payments, 2019 | $ 800,000 | |||||||||
Estimated future minimum lease payments, 2020 | 800,000 | |||||||||
Estimated future minimum lease payments, 2021 | 600,000 | |||||||||
Estimated future minimum lease payments, 2022 | 600,000 | |||||||||
Estimated future minimum lease payments, 2023 | 700,000 | |||||||||
Rent expense | $ 1,200,000 | $ 1,400,000 | $ 1,400,000 | |||||||
Fair value assumptions, credit adjusted risk-free rate, range minimal amount | 1.20% | |||||||||
Fair value assumptions, credit adjusted risk-free rate, range maximum amount | 4.20% | |||||||||
Accretion expense | $ 66,000 | 100,000 | 100,000 | |||||||
Asset retirement obligation | 1,809,000 | 1,638,000 | ||||||||
Asset retirement obligation, increase (decrease) | $ 100,000 | (45,000) | (300,000) | |||||||
Payments to terminate lease agreement | 200,000 | |||||||||
Amount of indemnification under Master Purchase Agreement | $ 3,400,000 | |||||||||
Period of indemnification under Master Purchase Agreement | 2 years | |||||||||
Sumitomo Electric Industries, LTD | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages sought in arbitration | $ 47,500,000 | |||||||||
Gain on settlement | 3,400,000 | |||||||||
Settled Litigation | Sumitomo Electric Industries, LTD | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Amount entitled to collect, held in escrow | $ 1,900,000 | |||||||||
Amount recovered in fees and costs from other party | 2,600,000 | |||||||||
Settled Litigation | Mirasol Class Action | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Litigation settlement, awarded to other party | $ 300,000 | |||||||||
Settlement agreement | $ 300,000 | |||||||||
Provision accrual | $ 200,000 | |||||||||
Settled Litigation | Mirasol Wrongful Termination | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Litigation settlement, awarded to other party | $ 50,000 | |||||||||
Buildings | Property Subject to Operating Lease | ||||||||||
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 | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Asset retirement obligation | $ 1,800,000 | $ 1,600,000 | ||||||||
Property in Beijing, China | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Lease term (in years) | 5 years | |||||||||
Asset retirement obligation | $ 100,000 | $ 100,000 | ||||||||
Discontinued Operations, Disposed of by Sale | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Payments to terminate lease agreement | $ 200,000 | 200,000 | ||||||||
Discontinued Operations, Disposed of by Sale | Sumitomo Electric Industries, LTD | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Gain on settlement | 3,800,000 | |||||||||
Write off of loss accrual | $ 400,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Balance at September 30, 2017 | $ 1,638 | ||
Accretion expense | 66 | $ 100 | $ 100 |
Revision in estimated cash flows | 105 | ||
Balance at September 30, 2018 | $ 1,809 | $ 1,638 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) | Dec. 28, 2017USD ($)shares | Jul. 31, 2016shares | Sep. 30, 2018USD ($)plan$ / sharesshares | Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2015shares | Mar. 05, 2014shares |
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 | $ | $ 15,000 | $ 900,000 | $ 87,000 | ||||
Granted (in shares) | 0 | 0 | |||||
Award vesting rights | 100.00% | ||||||
Stock-based compensation expense | $ | $ (3,648,000) | $ (3,602,000) | (2,162,000) | ||||
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | |||||
Preferred stock authorized (in shares) | 5,882,000 | ||||||
Par value of preferred stock (in usd per share) | $ / shares | $ 0.0001 | ||||||
Common stock, shares issued (in shares) | 34,487,000 | 33,938,000 | |||||
Common stock, shares outstanding (in shares) | 27,577,000 | 27,028,000 | |||||
Preferred stock outstanding (in shares) | 0 | 0 | |||||
Preferred stock issued (in shares) | 0 | 0 | |||||
Cash matching contribution | $ | $ 500,000 | $ 500,000 | $ 400,000 | ||||
Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation (in shares) | 949,000 | 398,000 | 508,000 | ||||
Amount of common stock issued under ESPP (in shares) | (2,775,016) | ||||||
Purchases under the employee stock purchase plan (in shares) | 740,558 | ||||||
Discontinued Operations | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ | $ 0 | $ 0 | $ (77,000) | ||||
Employee stock purchase plan | |||||||
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 | ||||||
Number of shares on which options may be granted in ESPP (in shares) | 3,515,574 | 3,250,000 | |||||
Increase in number of shares to be granted under ESPP (in shares) | 265,573.75 | ||||||
Employee stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options, average minimum vesting period (in years) | 4 years | ||||||
Stock options, average maximum vesting period (in years) | 5 years | ||||||
Stock options, contractual life (in years) | 10 years | ||||||
Unrecognized compensation expense | $ | $ 100,000 | ||||||
Unrecognized compensation expense, period for recognition (in years) | 2 years 4 days | ||||||
Stock-based compensation expense | $ | $ (32,000) | $ (45,000) | (38,000) | ||||
Restricted Stock Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Remaining unamortized stock-based compensation expense | $ | $ 45,000 | ||||||
Remaining unamortized stock-based compensation expense, period for recognition (in years) | 2 years 18 days | ||||||
Unvested restricted stock units (in shares) | 8,154 | 8,154 | |||||
Granted (in usd per share) | $ / shares | $ 0 | ||||||
Granted (in shares) | 0 | ||||||
Vested (in shares) | 0 | ||||||
Restricted Stock Awards | Minimum | Equity incentive plans 2012 and 2010 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period (in years) | 3 years | ||||||
Restricted Stock Awards | Maximum | Equity incentive plans 2012 and 2010 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period (in years) | 4 years | ||||||
Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Remaining unamortized stock-based compensation expense | $ | $ 5,000,000 | ||||||
Remaining unamortized stock-based compensation expense, period for recognition (in years) | 2 years 10 months 10 days | ||||||
Unvested restricted stock units (in shares) | 1,011,621 | 778,084 | |||||
Outstanding non-vested RSUs aggregate intrinsic value | $ | $ 4,800,000 | ||||||
Outstanding non-vested RSUs weighted average remaining contractual term (in years) | 1 year 7 months 28 days | ||||||
Intrinsic value of RSUs vested | $ | $ 2,300,000 | $ 3,400,000 | $ 1,600,000 | ||||
Granted (in usd per share) | $ / shares | $ 5.80 | $ 8.20 | $ 5.53 | ||||
Granted (in shares) | 648,043 | ||||||
Vested (in shares) | (374,969) | ||||||
Restricted Stock Units | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 40,000 | ||||||
Grant date fair value | $ | $ 300,000 | ||||||
Restricted Stock Units | Senior Vice President of Engineering | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 14,000 | ||||||
Grant date fair value | $ | $ 100,000 | ||||||
Restricted Stock Units | Vice President of Sales | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 10,000 | ||||||
Grant date fair value | $ | $ 100,000 | ||||||
Performance Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Remaining unamortized stock-based compensation expense, period for recognition (in years) | 1 year 4 months 2 days | ||||||
Unvested restricted stock units (in shares) | 397,777 | 328,708 | |||||
Intrinsic value of RSUs vested | $ | $ 1,400,000 | $ 0 | $ 0 | ||||
Granted (in usd per share) | $ / shares | $ 7.62 | $ 8.34 | |||||
Granted (in shares) | 108,500 | 240,164 | 0 | ||||
Grant date fair value | $ | $ 900,000 | ||||||
Award vesting rights | 200.00% | ||||||
Unamortized stock based compensation | $ | $ 1,500,000 | ||||||
Outstanding non-vested PSUs aggregate intrinsic value | $ | $ 1,900,000 | ||||||
Weighted average remaining contractual term, PSU | 1 year 4 months 2 days | ||||||
Vested (in shares) | (166,058) | ||||||
PSUs vested over target percentage | 67,664 | ||||||
Performance Stock Units | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 40,000 | ||||||
Grant date fair value | $ | $ 300,000 | ||||||
Performance Stock Units | Senior Vice President of Engineering | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 14,000 | ||||||
Grant date fair value | $ | $ 100,000 | ||||||
Performance Stock Units | Vice President of Sales | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 10,000 | ||||||
Grant date fair value | $ | $ 100,000 | ||||||
Performance Stock Units | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights | 0.00% | ||||||
Performance Stock Units | Minimum | Two Thousand Twelve Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period (in years) | 1 year | ||||||
Performance Stock Units | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights | 200.00% | ||||||
Performance Stock Units | Maximum | Two Thousand Twelve Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period (in years) | 3 years | ||||||
Performance Stock Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Remaining unamortized stock-based compensation expense, period for recognition (in years) | 1 year | ||||||
Unvested restricted stock units (in shares) | 33,333 | 33,333 | |||||
Granted (in usd per share) | $ / shares | $ 0 | ||||||
Granted (in shares) | 0 | ||||||
Unamortized stock based compensation | $ | $ 300,000 | ||||||
Vested (in shares) | 0 | ||||||
RSU Vesting - December 28, 2018 | Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights | 25.00% | ||||||
RSU Vesting - December 28, 2019 | Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights | 25.00% | ||||||
RSU Vesting - December 28, 2020 | Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights | 25.00% | ||||||
RSU Vesting - December 28, 2021 | Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights | 25.00% | ||||||
Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, shares outstanding (in shares) | 27,577,000 | 27,028,000 | 26,244,000 | 25,676,000 | |||
Issuance of common stock - ESPP (in shares) | 171,000 | 133,000 | 193,000 |
Equity (Schedule of Stock Optio
Equity (Schedule of Stock Options Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Number of Shares | |||
Outstanding, beginning of period (in shares) | 326,798 | ||
Granted (in shares) | 0 | 0 | |
Exercised (in shares) | (6,392) | ||
Forfeited (in shares) | (6,407) | ||
Expired (in shares) | (244,019) | ||
Outstanding, end of period (in shares) | 69,980 | 326,798 | |
Exercisable (in shares) | 46,886 | ||
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) | 4.37 | ||
Forfeited (in usd per share) | 4.60 | ||
Expired (in usd per share) | 24.57 | ||
Outstanding, ending of period (in usd per share) | 4.74 | $ 19.54 | |
Exercisable (in usd per share) | $ 4.76 | ||
Weighted Average Remaining Contractual Life (in years) | |||
Outstanding | 5 years 1 month 10 days | ||
Exercisable | 4 years 1 month 10 days | ||
Aggregate Intrinsic Value | |||
Intrinsic value of shares exercised | $ 15 | $ 900 | $ 87 |
Outstanding | 31 | ||
Exercisable | $ 23 | ||
Vested and expected to vest | |||
Number of stock options (in shares) | 69,980 | ||
Weighted average exercise price (in usd per share) | $ 4.74 | ||
Weighted average remaining contractual term | 5 years 1 month 10 days | ||
Aggregate intrinsic value | $ 45 |
Equity (Schedule of Restricted
Equity (Schedule of Restricted Stock Activity) (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restricted Stock Units | |||
Number of Shares | |||
Non-vested, beginning balance (in shares) | 778,084 | ||
Granted (in shares) | 648,043 | ||
Vested (in shares) | (374,969) | ||
Forfeited (in shares) | (39,537) | ||
Non-vested, ending balance (in shares) | 1,011,621 | 778,084 | |
Weighted Average Grant Date Fair Value | |||
Non-vested, beginning balance (in usd per share) | $ 5.91 | ||
Granted (in usd per share) | 5.80 | $ 8.20 | $ 5.53 |
Vested (in usd per share) | 5.40 | ||
Forfeited (in usd per share) | 5.23 | ||
Non-vested, ending balance (in usd per share) | $ 6.04 | $ 5.91 | |
Restricted Stock | |||
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 | 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 | $ 8.20 |
Equity (Schedule of Performance
Equity (Schedule of Performance Stock Activity) (Details) - $ / shares | Dec. 28, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Performance Stock Units | ||||
Number of Shares | ||||
Non-vested, beginning balance (in shares) | 328,708 | |||
Granted (in shares) | 108,500 | 240,164 | 0 | |
Vested (in shares) | (166,058) | |||
Forfeited (in shares) | (5,037) | |||
Non-vested, ending balance (in shares) | 397,777 | 328,708 | ||
Weighted Average Grant Date Fair Value | ||||
Non-vested, beginning balance (in usd per share) | $ 8.36 | |||
Granted (in usd per share) | 7.62 | $ 8.34 | ||
Vested (in usd per share) | 6.86 | |||
Forfeited (in usd per share) | 13.36 | |||
Non-vested, ending balance (in usd per share) | $ 8.48 | $ 8.36 | ||
Performance Stock Awards | ||||
Number of Shares | ||||
Non-vested, beginning balance (in shares) | 33,333 | |||
Granted (in shares) | 0 | |||
Vested (in shares) | 0 | |||
Forfeited (in shares) | 0 | |||
Non-vested, ending balance (in shares) | 33,333 | 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 | |||
Forfeited (in usd per share) | 0 | |||
Non-vested, ending balance (in usd per share) | $ 12.25 | $ 12.25 |
Equity (Schedule of Stock-based
Equity (Schedule of Stock-based Compensation Expense - by Award Type) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 3,648 | $ 3,602 | $ 2,162 |
Employee stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 32 | 45 | 38 |
Restricted stock units and awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,742 | 1,643 | 1,683 |
Performance stock units and awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,343 | 1,367 | 0 |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 276 | 300 | 223 |
Outside director equity awards and fees in common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 255 | $ 247 | $ 218 |
Equity (Schedule of Stock-bas_2
Equity (Schedule of Stock-based Compensation Expense - by Expense Category) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 3,648 | $ 3,602 | $ 2,162 |
Cost of revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 450 | 492 | 345 |
Selling, general, and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 2,584 | 2,605 | 1,445 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 614 | $ 505 | $ 372 |
Equity (Schedule of Earnings pe
Equity (Schedule of Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: | |||||||||||
(Loss) income from continuing operations | $ (5,886) | $ (8,414) | $ (3,071) | $ (82) | $ 2,164 | $ 2,436 | $ 1,855 | $ 1,766 | $ (17,453) | $ 8,221 | $ 2,619 |
Loss from discontinued operations | 0 | 0 | 0 | 0 | 41 | (11) | (7) | (9) | 0 | 14 | 5,647 |
Undistributed earnings allocated to common shareholders for basic and diluted net income per share | $ (5,886) | $ (8,414) | $ (3,071) | $ (82) | $ 2,205 | $ 2,425 | $ 1,848 | $ 1,757 | $ (17,453) | $ 8,235 | $ 8,266 |
Denominator: | |||||||||||
Denominator for basic net income per share - weighted average shares outstanding (in shares) | 26,904 | 26,833 | 26,622 | 26,279 | 27,266 | 26,659 | 25,979 | ||||
Dilutive options outstanding, unvested stock units and ESPP (in shares) | 0 | 885 | 539 | ||||||||
Denominator for diluted net income per share - adjusted weighted average shares outstanding (in shares) | 27,768 | 27,816 | 27,585 | 27,039 | 27,266 | 27,544 | 26,518 | ||||
Net (loss) income per basic share: | |||||||||||
Continuing operations (in usd per share) | $ (0.21) | $ (0.31) | $ (0.11) | $ 0 | $ 0.08 | $ 0.09 | $ 0.07 | $ 0.07 | $ (0.64) | $ 0.31 | $ 0.10 |
Discontinued operations (in usd per share) | 0 | 0 | 0.22 | ||||||||
Net income per basic share (in usd per share) | (0.64) | 0.31 | 0.32 | ||||||||
Net (loss) income per diluted share: | |||||||||||
Continuing operations (in usd per share) | (0.21) | (0.31) | (0.11) | 0 | 0.08 | 0.09 | 0.07 | 0.07 | (0.64) | 0.30 | 0.10 |
Discontinued operations (in usd per share) | 0 | 0 | 0.21 | ||||||||
Net income per diluted share (in usd per share) | $ (0.21) | $ (0.31) | $ (0.11) | $ 0 | $ 0.08 | $ 0.09 | $ 0.07 | $ 0.07 | $ (0.64) | $ 0.30 | $ 0.31 |
Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation (in shares) | 949 | 398 | 508 | ||||||||
Average market price of common stock (in dollars per share) | $ 5.87 | $ 8.92 | $ 5.88 |
Equity (Schedule of Common Stoc
Equity (Schedule of Common Stock Reserved for Future Issuances) (Details) - shares | Sep. 30, 2018 | Sep. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise of outstanding stock options (in shares) | 69,980 | 326,798 |
Purchases under the employee stock purchase plan (in shares) | 740,558 | |
Issuance of stock-based awards under the Equity Plans (in shares) | 1,474,701 | |
Purchases under the officer and director share purchase plan (in shares) | 88,741 | |
Total reserved (in shares) | 4,247,821 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock units (in shares) | 1,011,621 | 778,084 |
Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock units (in shares) | 397,777 | 328,708 |
Unvested performance stock units (in shares) | 862,220 | |
Maximum payout percentage | 200.00% |
Geographical Information (Narra
Geographical Information (Narrative) (Details) - customers | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Concentration risk, customers | 2 | 3 | 3 |
Percentage of long-lived assets located in the United States | 49.00% | 46.00% | |
Customer Concentration Risk | Sales Revenue, Segment | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Concentration risk percentage | 60.00% | 71.00% | 61.00% |
Geographical Information (Sched
Geographical Information (Schedule of Revenue by Geographic Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 25,241 | $ 17,717 | $ 18,623 | $ 24,036 | $ 29,176 | $ 30,952 | $ 32,591 | $ 30,176 | $ 85,617 | $ 122,895 | $ 91,998 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 69,543 | 98,520 | 66,436 | ||||||||
Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 10,386 | 16,713 | 17,401 | ||||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 5,422 | 7,015 | 7,618 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 266 | $ 647 | $ 543 |
Selected Quarterly Financial _3
Selected Quarterly Financial Information (unaudited) (Summary of Selected Quarter Financial Information) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 25,241 | $ 17,717 | $ 18,623 | $ 24,036 | $ 29,176 | $ 30,952 | $ 32,591 | $ 30,176 | $ 85,617 | $ 122,895 | $ 91,998 |
Cost of revenue | 20,813 | 16,519 | 13,676 | 16,122 | 18,565 | 20,110 | 21,553 | 20,133 | 67,130 | 80,361 | 61,044 |
Gross profit | 4,428 | 1,198 | 4,947 | 7,914 | 10,611 | 10,842 | 11,038 | 10,043 | 18,487 | 42,534 | 30,954 |
Operating expense (income): | |||||||||||
Selling, general, and administrative | 5,532 | 5,237 | 5,644 | 4,819 | 5,181 | 5,815 | 5,672 | 5,578 | 21,232 | 22,246 | 20,734 |
Research and development | 4,372 | 3,915 | 3,300 | 3,800 | 3,862 | 3,340 | 3,141 | 2,199 | 15,387 | 12,542 | 9,921 |
Impairments | 38 | 0 | 468 | 0 | 0 | 506 | 0 | ||||
Loss (gain) from change in estimate on ARO obligation | 145 | 0 | 0 | 0 | (45) | 0 | 0 | 0 | 145 | (45) | 0 |
Loss (gain) on sale of assets | (5) | 0 | (68) | 107 | (134) | (322) | 0 | 0 | 34 | (456) | (41) |
Total operating expense | 10,044 | 9,152 | 8,876 | 8,726 | 8,902 | 8,833 | 9,281 | 7,777 | 36,798 | 34,793 | 28,015 |
Operating (loss) income | (5,616) | (7,954) | (3,929) | (812) | 1,709 | 2,009 | 1,757 | 2,266 | (18,311) | 7,741 | 2,939 |
Other income (expense): | |||||||||||
Interest income, net | 243 | 216 | 163 | 111 | 99 | 77 | 46 | 23 | 733 | 245 | 88 |
Foreign exchange (loss) gain | (570) | (676) | 526 | 286 | 388 | 53 | 44 | (403) | (434) | 82 | (394) |
Other income | 110 | 0 | 0 | 0 | 0 | 316 | 0 | 0 | 110 | 316 | 0 |
Total other income (expense) | (217) | (460) | 689 | 397 | 487 | 446 | 90 | (380) | 409 | 643 | (306) |
Income (loss) from continuing operations before income taxes | (5,833) | (8,414) | (3,240) | (415) | 2,196 | 2,455 | 1,847 | 1,886 | (17,902) | 8,384 | 2,633 |
Income tax benefit (expense) | (53) | 0 | 169 | 333 | (32) | (19) | 8 | (120) | 449 | (163) | (14) |
(Loss) income from continuing operations | (5,886) | (8,414) | (3,071) | (82) | 2,164 | 2,436 | 1,855 | 1,766 | (17,453) | 8,221 | 2,619 |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 | 41 | (11) | (7) | (9) | 0 | 14 | 5,647 |
Undistributed earnings allocated to common shareholders for basic and diluted net income per share | $ (5,886) | $ (8,414) | $ (3,071) | $ (82) | $ 2,205 | $ 2,425 | $ 1,848 | $ 1,757 | $ (17,453) | $ 8,235 | $ 8,266 |
Net income per basic share: | |||||||||||
Continuing operations (in usd per share) | $ (0.21) | $ (0.31) | $ (0.11) | $ 0 | $ 0.08 | $ 0.09 | $ 0.07 | $ 0.07 | $ (0.64) | $ 0.31 | $ 0.10 |
Discontinued operations (in usd per share) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.22 |
Net (loss) income per basic share (in usd per share) | (0.21) | (0.31) | (0.11) | 0 | 0.08 | 0.09 | 0.07 | 0.07 | (0.64) | 0.31 | 0.32 |
Net income per diluted share: | |||||||||||
Continuing operations (in usd per share) | (0.21) | (0.31) | (0.11) | 0 | 0.08 | 0.09 | 0.07 | 0.07 | (0.64) | 0.30 | 0.10 |
Discontinued operations (in usd per share) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.21 |
Net income per diluted share (in usd per share) | $ (0.21) | $ (0.31) | $ (0.11) | $ 0 | $ 0.08 | $ 0.09 | $ 0.07 | $ 0.07 | $ (0.64) | $ 0.30 | $ 0.31 |
Weighted-average number of basic and diluted shares outstanding (in shares) | 27,424 | 27,387 | 27,197 | 27,032 | |||||||
Weighted-average number of basic shares outstanding (in shares) | 26,904 | 26,833 | 26,622 | 26,279 | 27,266 | 26,659 | 25,979 | ||||
Weighted-average number of basic shares outstanding (in shares) | 27,768 | 27,816 | 27,585 | 27,039 | 27,266 | 27,544 | 26,518 |