Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2018 | Jan. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | EMCORE CORP | |
Entity Central Index Key | 808,326 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,019 | |
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 | 27,670,466 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 24,001 | $ 24,036 |
Cost of revenue | 18,193 | 16,122 |
Gross profit | 5,808 | 7,914 |
Operating expense: | ||
Selling, general, and administrative | 7,593 | 4,819 |
Research and development | 4,019 | 3,800 |
Loss on sale of assets | 0 | 107 |
Total operating expense | 11,612 | 8,726 |
Operating loss | (5,804) | (812) |
Other income: | ||
Interest income, net | 267 | 111 |
Foreign exchange gain | 14 | 286 |
Total other income | 281 | 397 |
Loss before income tax (expense) benefit | (5,523) | (415) |
Income tax (expense) benefit | (15) | 333 |
Net loss | (5,538) | (82) |
Foreign exchange translation adjustment | 14 | 253 |
Comprehensive (loss) income | $ (5,524) | $ 171 |
Per share data: | ||
Net loss per basic share (in usd per share) | $ (0.20) | $ 0 |
Weighted-average number of basic and diluted shares outstanding (in shares) | 27,534 | 27,032 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 57,284 | $ 63,117 |
Restricted cash | 11 | 78 |
Accounts receivable, net of allowance of $322 and $548, respectively | 18,362 | 19,275 |
Inventory | 20,466 | 20,850 |
Prepaid expenses and other current assets | 13,251 | 12,730 |
Total current assets | 109,374 | 116,050 |
Property, plant, and equipment, net | 19,088 | 18,216 |
Non-current inventory | 1,415 | 1,433 |
Other non-current assets | 114 | 199 |
Total assets | 129,991 | 135,898 |
Current liabilities: | ||
Accounts payable | 10,515 | 12,997 |
Accrued expenses and other current liabilities | 16,008 | 14,205 |
Total current liabilities | 26,523 | 27,202 |
Asset retirement obligations | 1,823 | 1,809 |
Other long-term liabilities | 89 | 82 |
Total liabilities | 28,435 | 29,093 |
Commitments and contingencies (Note 11) | ||
Shareholders’ equity: | ||
Common stock, no par value, 50,000 shares authorized; 34,578 shares issued and 27,668 shares outstanding as of December 31, 2018; 34,487 shares issued and 27,577 shares outstanding as of September 30, 2018 | 734,341 | 734,066 |
Treasury stock at cost; 6,910 shares | (47,721) | (47,721) |
Accumulated other comprehensive income | 899 | 885 |
Accumulated deficit | (585,963) | (580,425) |
Total shareholders’ equity | 101,556 | 106,805 |
Total liabilities and shareholders’ equity | $ 129,991 | $ 135,898 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Accounts receivable: | ||
Allowance for doubtful accounts | $ 322 | $ 548 |
Shareholders’ equity: | ||
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 34,578,000 | 34,487,000 |
Common stock, shares outstanding (in shares) | 27,668,000 | 27,577,000 |
Treasury stock, shares held (in shares) | 6,910,000 | 6,910,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (5,538) | $ (82) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 1,594 | 1,202 |
Stock-based compensation expense | 425 | 915 |
Provision adjustments related to doubtful accounts | 0 | 17 |
Provision adjustments related to product warranty | 56 | 58 |
Net loss on disposal of equipment | 0 | 107 |
Other | 28 | (132) |
Total non-cash adjustments | 2,103 | 2,167 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 911 | (883) |
Inventory | 392 | 2,169 |
Other assets | (436) | (277) |
Accounts payable | (2,064) | (4,322) |
Accrued expenses and other current liabilities | 1,763 | (727) |
Total change in operating assets and liabilities | 566 | (4,040) |
Net cash used in operating activities | (2,869) | (1,955) |
Cash flows from investing activities: | ||
Purchase of equipment | (2,878) | (1,881) |
Proceeds from disposal of property, plant and equipment | 0 | 8 |
Net cash used in investing activities | (2,878) | (1,873) |
Cash flows from financing activities: | ||
Proceeds from stock plans | 0 | 16 |
Tax withholding paid on behalf of employees for stock-based awards | (150) | (724) |
Net cash used in financing activities | (150) | (708) |
Effect of exchange rate changes on foreign currency | (3) | 15 |
Net decrease in cash, cash equivalents and restricted cash | (5,900) | (4,521) |
Cash, cash equivalents and restricted cash at beginning of period | 63,195 | 68,754 |
Cash, cash equivalents and restricted cash at end of period | 57,295 | 64,233 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid during the period for interest | 25 | 16 |
Cash paid during the period for income taxes | 2 | 33 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Changes in accounts payable related to purchases of equipment | $ (410) | $ (176) |
Description of Business
Description of Business | 3 Months Ended |
Dec. 31, 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. Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim information, and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by U.S. GAAP for annual financial statements. In our opinion, the interim financial statements reflect all normal adjustments that are necessary to provide a fair presentation of the financial results for the interim periods presented. Operating results for interim periods are not necessarily indicative of results that may be expected for an entire fiscal year. The condensed consolidated balance sheet as of September 30, 2018 has been derived from the audited consolidated financial statements as of such date. For a more complete understanding of our business, financial position, operating results, cash flows, risk factors and other matters, please refer to our Annual Report on Form 10-K for the fiscal year ended September 30, 2018. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements and U.S. Tax Reform | Recent Accounting Pronouncements (a) New Accounting Updates Recently Adopted • In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) , which replaces numerous requirements in U.S. GAAP, including industry-specific requirements, and provides companies with a single revenue recognition model for recognizing revenue from contracts with customers. Under the new standard, 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. In July 2015, the FASB approved the deferral of the new standard's effective date by one year. The new standard was effective for our fiscal year beginning October 1, 2018. Effective October 1, 2018, we adopted the requirements of Topic 606 using the modified retrospective method. There was no significant cumulative impact to our accumulated deficit upon adoption. • In May 2017, the FASB issued 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 was effective for our fiscal year beginning October 1, 2018. The adoption of ASU 2017-09 did not have an impact on the Company’s condensed consolidated financial statements. • 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 new standard was be effective for our fiscal year beginning October 1, 2018. The adoption of ASU 2016-01 did not have an impact on our condensed consolidated financial statements and related disclosures. (b) Recent Accounting Standards or Updates Not Yet Effective • 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 continuing to evaluate 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 we 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Our significant accounting policies are detailed in “Note 2 - Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended September 30, 2018 . Significant changes to our accounting policies as a result of adopting Topic 606 are discussed below: Revenue Recognition - To determine the proper revenue recognition, we perform the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to the customer. The vast majority of our revenues are from product sales to our customers, pursuant to purchase orders with short lead times. Revenues from product sales are recognized when the customer obtains control of our product, which occurs at a point in time. The Company has elected to account for shipping and handling activities as a fulfillment cost as permitted by the standard. When we perform shipping and handling activities after the transfer of control to the customer (e.g. when control transfers prior to delivery), they are considered fulfillment activities, and accordingly, the costs are accrued when the related revenue is recognized. We expense incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that we would have recognized is one year or less. In certain instances, inventory is maintained by our customers at consigned locations. Revenues from consigned sales are recognized when the customer obtains control of our product, which occurs at a point in time. This is typically when the customer pulls product for use. We use a number of wholesale distributors around the world and recognize revenue when the wholesale distributor obtains control of our product, which occurs at a point in time, typically upon shipment. Our wholesale distributors are contractually obligated to pay us on standard commercial terms, consistent with our end-use customers. We do not sell to wholesale distributors on consignment and do not give wholesale distributors a right of return. In certain instances, prior to 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 (e.g. customer acceptance clause). 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. Revenues are recognized when the customer obtains control of the qualified product, which occurs at a point in time, typically upon shipment. To a lesser extent, we enter into other types of contracts including non-recurring engineering contracts. We recognize revenue for these arrangements over time or at a point in time depending on our evaluation of when the customer obtains control of the promised goods or services. For contracts that include multiple performance obligations, we allocate revenue to each performance obligation based on estimates of the relative standalone selling price that we would charge the customer for each promised product or service. Receivables, Net - Receivables, net, include amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. Payments are generally due within 90 days or less of invoicing and do not include a significant financing component. We maintain an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable. Receivables, net, totaled $18.4 million and $19.3 million at December 31, 2018 and September 30, 2018 , respectively. Remaining Performance Obligations - Remaining performance obligations represents the transaction price of firm orders for long-term contracts which control has not transferred to the customer. As of December 31, 2018 , the aggregate amount of the transaction price allocated to remaining performance obligations was $4.3 million . The Company expects to recognize revenue on approximately 84% of the remaining performance obligations over the next year with the remaining amount recognized thereafter. Product Warranty Reserves - We provide our customers with warranty claims for certain products and warranty-related services are not considered a separate performance obligation. Pursuant to Accounting Standards Codification (“ASC”) 450, Contingencies , we make estimates of product warranty expense using historical experience rates 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 the product issues. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. Disaggregation of Revenue - Revenue is classified based on the product line of business. For additional information on the disaggregated revenues by geographical region see Note 14 - Geographical Information in the notes to the condensed consolidated financial statements. Revenue is also classified by major product category and is presented below: For the three months ended December 31, (in thousands) 2018 % of Revenue 2017 % of Revenue Broadband $ 17,327 72 % $ 20,866 87 % Chips 4,215 18 % 2,151 9 % Navigation 2,459 10 % 1,019 4 % Total revenue $ 24,001 100 % $ 24,036 100 % |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 3 Months Ended |
Dec. 31, 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 As of As of (in thousands) December 31, 2018 September 30, 2018 December 31, 2017 Cash $ 2,619 $ 2,965 $ 3,769 Cash equivalents $ 54,665 $ 60,152 $ 60,431 Restricted cash 11 78 33 Total cash, cash equivalents and restricted cash $ 57,295 63,195 64,233 The Company's restricted cash includes cash balances which are legally or contractually restricted to use. The Company's restricted cash is included in current assets as of December 31, 2018 , September 30, 2018 and December 31, 2017 . |
Fair Value Accounting
Fair Value Accounting | 3 Months Ended |
Dec. 31, 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 | 3 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The components of accounts receivable consisted of the following: As of (in thousands) December 31, 2018 September 30, 2018 Accounts receivable, gross $ 18,684 $ 19,823 Allowance for doubtful accounts (322 ) (548 ) Accounts receivable, net $ 18,362 $ 19,275 The allowance for doubtful accounts is based on the age of receivables and a specific identification of receivables considered at risk of collection. The following table summarizes changes in the allowance for doubtful accounts for the three months ended December 31, 2018 and 2017 . Allowance for Doubtful Accounts (in thousands) For the three months ended December 31, 2018 2017 Balance at beginning of period $ 548 $ 22 Provision adjustment - expense, net of recoveries — 17 Write-offs and other adjustments - deductions to receivable balances (226 ) — Balance at end of period $ 322 $ 39 |
Inventory
Inventory | 3 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The components of inventory consisted of the following: As of (in thousands) December 31, 2018 September 30, 2018 Raw materials $ 11,951 $ 11,857 Work in-process 5,515 5,402 Finished goods 4,415 5,024 Inventory balance at end of period $ 21,881 $ 22,283 Current portion $ 20,466 $ 20,850 Non-Current portion $ 1,415 $ 1,433 The non-current inventory balance of $1.4 million as of both December 31, 2018 and September 30, 2018 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 three months ended December 31, 2018 , we recorded a $0.4 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 | 3 Months Ended |
Dec. 31, 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 (in thousands) December 31, 2018 September 30, 2018 Equipment $ 37,025 $ 36,625 Furniture and fixtures 1,109 1,109 Computer hardware and software 2,934 2,928 Leasehold improvements 2,089 2,049 Construction in progress 5,683 3,648 Property, plant, and equipment, gross $ 48,840 46,359 Accumulated depreciation (29,752 ) (28,143 ) Property, plant, and equipment, net $ 19,088 $ 18,216 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Dec. 31, 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 (in thousands) December 31, 2018 September 30, 2018 Compensation $ 2,826 $ 3,065 Warranty 652 642 Professional fees 1,095 604 Customer deposits 285 22 Deferred revenue 474 368 Income and other taxes 9,311 7,593 Severance and restructuring accruals 85 82 Other 1,280 1,829 Accrued expenses and other current liabilities $ 16,008 $ 14,205 Compensation : Compensation is primarily comprised of accrued employee salaries, taxes and benefits. Severance and restructuring accruals : On December 4, 2018 , the Company and Jikun Kim, the Company's former Chief Financial Officer, entered into a Separation and General Release Agreement (the “Separation Agreement”) pursuant to which the Company and Mr. Kim agreed that he would cease service with the Company effective as of December 31, 2018 (the “Separation Date”). The Separation Agreement provided for, among other things, the continuation of his base salary for a period of two months following the Separation Date and a lump sum payment of $22,875 in lieu of any cash bonus payment under the Company’s Fiscal Year 2018 Bonus Plan, in each case subject to his execution and non-revocation of a general release agreement releasing the Company from any liability or obligation to him and compliance with certain confidentiality, non-solicitation and other restrictive covenants as provided in the Separation Agreement. Mr. Kim’s outstanding equity awards that remained unvested as of the Separation Date were cancelled and terminated. The Company recorded a charge of approximately $0.1 million in the three months ended December 31, 2018 related to this Separation Agreement. Our severance and restructuring-related accruals specifically relate to the separation agreement 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 and restructuring accrual account: (in thousands) Severance-related accruals Restructuring- related accruals Total Balance as of September 30, 2018 7 75 82 Expense - charged to accrual 57 — 57 Payments and accrual adjustments (13 ) (41 ) (54 ) Balance as of December 31, 2018 $ 51 $ 34 $ 85 Warranty: The following table summarizes the changes in our product warranty accrual accounts: Product Warranty Accruals For the three months ended December 31, (in thousands) 2018 2017 Balance at beginning of period $ 642 $ 684 Provision for product warranty - expense 56 58 Adjustments and utilization of warranty accrual (46 ) (29 ) Balance at end of period $ 652 $ 713 |
Credit Facilities
Credit Facilities | 3 Months Ended |
Dec. 31, 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, acquisitions, and other general corporate purpose subject to a requirement, for certain specific uses, that the Company have liquidity of at least $25 million after such use. As of December 31, 2018 , there were no amounts outstanding under this Credit Facility and the Company was in compliance with all financial covenants. Also, as of December 31, 2018 , the Credit Facility had approximately $0.5 million reserved for one outstanding stand-by letter of credit and $5.5 million available for borrowing. As of January 31, 2019 , there was no outstanding balance under this Credit Facility and $0.5 million reserved for one outstanding stand-by letter of credit. |
Income and Other Taxes
Income and Other Taxes | 3 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income and Other Taxes | Income and Other Taxes For the three months ended December 31, 2018 and 2017 , the Company recorded income tax (expense) benefit of approximately $(15,000) and $0.3 million , respectively. Income tax expense for the three months ended December 31, 2018 is primarily comprised of state minimum tax expense. Income tax benefit for three months ended December 31, 2017 is primarily comprised of the effect of the December 22, 2017 Tax Cuts and Jobs Act (the “Tax Act”) which eliminated Alternative Minimum Taxes and resulted in a refund to the Company of amounts paid in prior fiscal years, state minimum tax expense, and foreign tax expense included within continuing operations. For the three months ended December 31, 2018 and 2017 , the effective tax rate on continuing operations was 0% and (80.2)% , respectively. The lower tax rate for the three months ended December 31, 2018 is primarily due to the operating loss and state minimum tax expense. The higher beneficial tax rate for three months ended December 31, 2017 was primarily due to the effect of the Tax Act, which resulted in a credit to the Company on future tax payments for past AMT amounts paid and the fiscal year 2018 operating loss. Income tax expense is comprised of estimated alternative minimum tax as prescribed by ASC 740 and foreign tax expense. The Company uses some estimates to forecast permanent differences between book and tax accounting. We have not provided for income taxes on non-U.S. subsidiaries' undistributed earnings as of December 31, 2018 because we plan to indefinitely reinvest the unremitted earnings of our non-U.S. subsidiaries and all of our non-U.S. subsidiaries historically have negative earnings and profits. All deferred tax assets have a full valuation allowance at December 31, 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 three months ended December 31, 2018 and 2017 , there were no material increases or decreases in unrecognized tax benefits. As of December 31, 2018 and September 30, 2018 , we had approximately $0.4 million 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. Interest that is accrued on tax liabilities is recorded within interest expense on the statement of condensed consolidated statements of operations. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Obligations : We lease certain facilities and equipment under non-cancelable operating leases. Operating lease amounts exclude renewal option periods, property taxes, insurance, and maintenance expenses on leased properties. Our facility leases typically provide for rental adjustments for increases in base rent (up to specific limits), property taxes, insurance, and general property maintenance that would be recorded as rent expense. Rent expense was approximately $0.3 million for the three months ended December 31, 2018 and 2017 . There are no off-balance sheet arrangements other than our operating leases. Asset Retirement Obligation : We have known conditional Asset Retirement Obligations (“AROs”) such as certain asset decommissioning and restoration of rented facilities to be performed in the future. Our ARO includes assumptions related to renewal option periods for those facilities where we expect to extend lease terms. The Company recognizes its estimate of the fair value of its ARO in the period incurred in long-term liabilities. The fair value of the ARO is also capitalized as property, plant and equipment. In future periods, the ARO is accreted for the change in its present value and capitalized costs are depreciated over the useful life of the related assets. If the fair value of the estimated ARO changes, an adjustment will be recorded to both the ARO and the asset retirement capitalized cost. Revisions in estimated liabilities can result from revisions of estimated inflation rates, changes in estimated retirement costs, and changes in the estimated timing of settling the ARO. The fair value of our ARO was estimated by discounting projected cash flows over the estimated life of the related assets using credit adjusted risk-free rates which ranged from 1.20% to 4.20% . There was no ARO settled during the three months ended December 31, 2018 and 2017 . Accretion expense of $14,000 and $17,000 was recorded during the three months ended December 31, 2018 and 2017 , respectively. 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 December 31, 2018 and September 30, 2018 of $1.8 million . 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. In May 2016 (and 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 December 31, 2018 and September 30, 2018 . Indemnifications : We have agreed to indemnify certain customers against claims of infringement of intellectual property rights of others in our sales contracts with these customers. Historically, we have not paid any claims under these indemnification obligations. Legal Proceedings : We are subject to various legal proceedings, claims, and litigation, either asserted or unasserted, that arise in the ordinary course of business. 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) 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 was held on January 8 through 12, 2019, and closing arguments are currently scheduled for March 29, 2019. A second arbitration hearing on the patent claims has been set for July 29, 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. On December 7, 2018, the United States District Court for the Central District of California issued an order granting Phoenix's motion to dismiss this action. |
Equity
Equity | 3 Months Ended |
Dec. 31, 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 three months ended December 31, 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, 2018 69,980 $4.74 Granted — — Exercised — — — Forfeited (52 ) $3.97 Expired (1,267 ) $5.21 Outstanding as of December 31, 2018 68,661 $4.73 4.93 $ 11 Exercisable as of December 31, 2018 47,122 $4.77 4.04 $ 10 Vested and expected to vest as of December 31, 2018 68,661 $4.73 4.93 $ 11 (*) Intrinsic value for stock options represents the “in-the-money” portion or the positive variance between a stock option's exercise price and the underlying stock price. For the three months ended December 31, 2017 , the intrinsic value of options exercised was $13,000 . As of December 31, 2018 , there was approximately $44,000 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 1.8 years . Valuation Assumptions There were no stock option grants for the three months ended December 31, 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 the three months ended December 31, 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, 2018 1,011,621 $6.04 8,154 $8.20 Granted 10,000 $4.48 — $0.00 Vested (93,422 ) $6.84 — $0.00 Forfeited (117,108 ) $4.73 — $0.00 Non-vested as of December 31, 2018 811,091 $6.12 8,154 $8.20 As of December 31, 2018 , there was approximately $4.1 million of remaining unamortized stock-based compensation expense associated with RSUs, which will be expensed over a weighted average remaining service period of approximately 2.7 years. The 0.8 million outstanding non-vested and expected to vest RSUs have an aggregate intrinsic value of approximately $3.4 million and a weighted average remaining contractual term of 1.6 years. For the three months ended December 31, 2018 and 2017 , the intrinsic value of RSUs vested was approximately $0.4 million and $0.3 million , respectively. For the three months ended December 31, 2017 , the weighted average grant date fair value of RSUs granted was $6.73 per share. As of December 31, 2018 , there was approximately $39,000 of remaining unamortized stock-based compensation expense associated with RSAs, which will be expensed over a weighted average remaining service period of approximately 1.8 years . Performance Stock Performance based restricted stock units (“PSUs”) and performance based shares of restricted stock (“PRSAs”) granted to employees under the 2012 Plan typically vest over 1 to 3 years and are subject to forfeiture in whole, if employment terminates, or in whole or in part, if specified vesting conditions are not satisfied, in each case prior to vesting. PSUs are not considered issued or outstanding common stock until they vest. PRSAs are considered issued and outstanding on the grant date (at 200% of the target number of shares) and are subject to forfeiture if specified vesting conditions are not satisfied. PSUs and PRSAs that are granted to our executive officers and key employees are provided as long-term incentive compensation that is based on relative total shareholder return, which measures our performance against that of our competitors. The following table summarizes the activity related to PSUs and PRSAs for the three months ended December 31, 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, 2018 397,777 $8.48 33,333 $12.25 Granted — $0.00 — $0.00 Vested (30,874 ) $7.14 — $0.00 Forfeited (132,579 ) $7.24 — $0.00 Non-vested as of December 31, 2018 234,324 $9.35 33,333 $12.25 As of December 31, 2018 , there was approximately $1.2 million of remaining unamortized stock-based compensation expense associated with PSUs, which will be expensed over a weighted average remaining service period of approximately 1.7 years. The 0.2 million outstanding non-vested and expected to vest PSUs have an aggregate intrinsic value of approximately $1.0 million and a weighted average remaining contractual term of 1.7 years. For the three months ended December 31, 2018 and 2017 , the intrinsic value of PSUs vested was approximately $0.2 million and $1.4 million , respectively. For the three months ended December 31, 2017 , the weighted average grant date fair value of PSUs granted was $7.62 . As of December 31, 2018 , there was approximately $0.2 million of remaining unamortized stock-based compensation expense associated with PRSAs, which will be expensed over a weighted average remaining service period of approximately 0.8 years . Stock-based compensation The effect of recording stock-based compensation expense was as follows: Stock-based Compensation Expense - by award type For the three months ended December 31, (in thousands) 2018 2017 Employee stock options $ 7 $ 10 Restricted stock units and awards 386 451 Performance stock units and awards (60 ) 289 Employee stock purchase plan 40 86 Outside director equity awards and fees in common stock 52 79 Total stock-based compensation expense $ 425 $ 915 Stock-based Compensation Expense - by expense type For the three months ended December 31, (in thousands) 2018 2017 Cost of revenue $ 111 $ 139 Selling, general, and administrative 159 638 Research and development 155 138 Total stock-based compensation expense $ 425 $ 915 Stock-based compensation within selling, general and administrative expense was lower for the three months ended December 31, 2018 due to the reversal of previously recognized expense associated with the forfeiture of unvested RSUs and PSUs of our former CFO Jikun Kim. 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 each of the three months ended December 31, 2018 and 2017 was approximately $0.1 million . Loss Per Share The following table sets forth the computation of basic and diluted net loss per share: Basic and Diluted Net Loss Per Share For the three months ended December 31, (in thousands, except per share) 2018 2017 Numerator: Loss from continuing operations $ (5,538 ) $ (82 ) Undistributed earnings allocated to common shareholders for basic and diluted net income per share (5,538 ) (82 ) Denominator: Denominator for basic and fully diluted net loss per share - weighted average shares outstanding 27,534 27,032 Net loss per basic and fully diluted share $ (0.20 ) $ — Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation 664 911 Average market price of common stock $ 4.69 $ 7.50 For diluted loss per share, the denominator includes all outstanding common shares and all potential dilutive common shares to be issued. The anti-dilutive stock options and unvested stock were excluded from the computation of diluted net loss per share for the three months ended December 31, 2018 and 2017 due to the Company incurring a net loss for the period. Employee Stock Purchase Plan We maintain an Employee Stock Purchase Plan (“ESPP”) that provides employees an opportunity to purchase common stock through payroll deductions. The ESPP is a 6 -month duration plan with new participation periods beginning on 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 . Future Issuances As of December 31, 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 68,661 Unvested restricted stock units 811,091 Unvested performance stock units and awards (at 200% maximum payout) 535,314 Purchases under the employee stock purchase plan 740,558 Issuance of stock-based awards under the Equity Plans 1,879,160 Purchases under the officer and director share purchase plan 88,741 Total reserved 4,123,525 |
Geographical Information
Geographical Information | 3 Months Ended |
Dec. 31, 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 three months ended December 31, (in thousands) 2018 2017 United States and Canada $ 18,576 $ 20,079 Asia 4,045 2,657 Europe 1,266 1,227 Other 114 73 Total revenue $ 24,001 $ 24,036 Significant Customers : Significant customers are defined as customers representing greater than 10% of our consolidated revenue. Revenue from four and two of our significant customers represented an aggregate of 74% and 63% of our consolidated revenue for the three months ended December 31, 2018 and 2017 , respectively. Long-lived Assets : Long-lived assets consist of property, plant, and equipment. As of December 31, 2018 and September 30, 2018 , approximately 65% and 49% , respectively, of our long-lived assets were located in the United States. The remaining long-lived assets are primarily located in China. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Revenue from Contract with Customer | Revenue Recognition - To determine the proper revenue recognition, we perform the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to the customer. The vast majority of our revenues are from product sales to our customers, pursuant to purchase orders with short lead times. Revenues from product sales are recognized when the customer obtains control of our product, which occurs at a point in time. The Company has elected to account for shipping and handling activities as a fulfillment cost as permitted by the standard. When we perform shipping and handling activities after the transfer of control to the customer (e.g. when control transfers prior to delivery), they are considered fulfillment activities, and accordingly, the costs are accrued when the related revenue is recognized. We expense incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that we would have recognized is one year or less. In certain instances, inventory is maintained by our customers at consigned locations. Revenues from consigned sales are recognized when the customer obtains control of our product, which occurs at a point in time. This is typically when the customer pulls product for use. We use a number of wholesale distributors around the world and recognize revenue when the wholesale distributor obtains control of our product, which occurs at a point in time, typically upon shipment. Our wholesale distributors are contractually obligated to pay us on standard commercial terms, consistent with our end-use customers. We do not sell to wholesale distributors on consignment and do not give wholesale distributors a right of return. In certain instances, prior to 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 (e.g. customer acceptance clause). 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. Revenues are recognized when the customer obtains control of the qualified product, which occurs at a point in time, typically upon shipment. To a lesser extent, we enter into other types of contracts including non-recurring engineering contracts. We recognize revenue for these arrangements over time or at a point in time depending on our evaluation of when the customer obtains control of the promised goods or services. For contracts that include multiple performance obligations, we allocate revenue to each performance obligation based on estimates of the relative standalone selling price that we would charge the customer for each promised product or service. |
Receivables, Policy | Receivables, Net - Receivables, net, include amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. Payments are generally due within 90 days or less of invoicing and do not include a significant financing component. We maintain an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable. The allowance for doubtful accounts is based on the age of receivables and a specific identification of receivables considered at risk of collection. |
Standard Product Warranty, Policy | Product Warranty Reserves - We provide our customers with warranty claims for certain products and warranty-related services are not considered a separate performance obligation. Pursuant to Accounting Standards Codification (“ASC”) 450, Contingencies , we make estimates of product warranty expense using historical experience rates 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 the product issues. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy | Expense related to severance and restructuring accruals is included in selling, general, and administrative expense on our statements of operations and comprehensive income. |
Fair Value of Financial Instruments, Policy | 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. |
Legal Costs, Policy | Professional legal fees are expensed when incurred. We accrue for contingent losses when such losses are probable and reasonably estimable. |
New Accounting Pronouncements, Policy | • In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) , which replaces numerous requirements in U.S. GAAP, including industry-specific requirements, and provides companies with a single revenue recognition model for recognizing revenue from contracts with customers. Under the new standard, 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. In July 2015, the FASB approved the deferral of the new standard's effective date by one year. The new standard was effective for our fiscal year beginning October 1, 2018. Effective October 1, 2018, we adopted the requirements of Topic 606 using the modified retrospective method. There was no significant cumulative impact to our accumulated deficit upon adoption. • In May 2017, the FASB issued 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 was effective for our fiscal year beginning October 1, 2018. The adoption of ASU 2017-09 did not have an impact on the Company’s condensed consolidated financial statements. • 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 new standard was be effective for our fiscal year beginning October 1, 2018. The adoption of ASU 2016-01 did not have an impact on our condensed consolidated financial statements and related disclosures. (b) Recent Accounting Standards or Updates Not Yet Effective • 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 continuing to evaluate 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 we 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. |
Asset Retirement Obligation [Policy Text Block] | 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. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted cash represents temporarily restricted deposits held as compensating balances against short-term borrowing arrangements. |
Cash and Cash Equivalents, Unrestricted Cash and Cash Equivalents, Policy [Policy Text Block] | 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. |
Segment Reporting, Policy [Policy Text Block] | 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) | 3 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | Revenue is also classified by major product category and is presented below: For the three months ended December 31, (in thousands) 2018 % of Revenue 2017 % of Revenue Broadband $ 17,327 72 % $ 20,866 87 % Chips 4,215 18 % 2,151 9 % Navigation 2,459 10 % 1,019 4 % Total revenue $ 24,001 100 % $ 24,036 100 % |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 3 Months Ended |
Dec. 31, 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 As of As of (in thousands) December 31, 2018 September 30, 2018 December 31, 2017 Cash $ 2,619 $ 2,965 $ 3,769 Cash equivalents $ 54,665 $ 60,152 $ 60,431 Restricted cash 11 78 33 Total cash, cash equivalents and restricted cash $ 57,295 63,195 64,233 |
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 As of As of (in thousands) December 31, 2018 September 30, 2018 December 31, 2017 Cash $ 2,619 $ 2,965 $ 3,769 Cash equivalents $ 54,665 $ 60,152 $ 60,431 Restricted cash 11 78 33 Total cash, cash equivalents and restricted cash $ 57,295 63,195 64,233 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The components of accounts receivable consisted of the following: As of (in thousands) December 31, 2018 September 30, 2018 Accounts receivable, gross $ 18,684 $ 19,823 Allowance for doubtful accounts (322 ) (548 ) Accounts receivable, net $ 18,362 $ 19,275 The following table summarizes changes in the allowance for doubtful accounts for the three months ended December 31, 2018 and 2017 . Allowance for Doubtful Accounts (in thousands) For the three months ended December 31, 2018 2017 Balance at beginning of period $ 548 $ 22 Provision adjustment - expense, net of recoveries — 17 Write-offs and other adjustments - deductions to receivable balances (226 ) — Balance at end of period $ 322 $ 39 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventory consisted of the following: As of (in thousands) December 31, 2018 September 30, 2018 Raw materials $ 11,951 $ 11,857 Work in-process 5,515 5,402 Finished goods 4,415 5,024 Inventory balance at end of period $ 21,881 $ 22,283 Current portion $ 20,466 $ 20,850 Non-Current portion $ 1,415 $ 1,433 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, net (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The components of property, plant, and equipment, net consisted of the following: As of (in thousands) December 31, 2018 September 30, 2018 Equipment $ 37,025 $ 36,625 Furniture and fixtures 1,109 1,109 Computer hardware and software 2,934 2,928 Leasehold improvements 2,089 2,049 Construction in progress 5,683 3,648 Property, plant, and equipment, gross $ 48,840 46,359 Accumulated depreciation (29,752 ) (28,143 ) Property, plant, and equipment, net $ 19,088 $ 18,216 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | The components of accrued expenses and other current liabilities consisted of the following: As of (in thousands) December 31, 2018 September 30, 2018 Compensation $ 2,826 $ 3,065 Warranty 652 642 Professional fees 1,095 604 Customer deposits 285 22 Deferred revenue 474 368 Income and other taxes 9,311 7,593 Severance and restructuring accruals 85 82 Other 1,280 1,829 Accrued expenses and other current liabilities $ 16,008 $ 14,205 |
Schedule of Restructuring and Related Costs | The following table summarizes the changes in the severance and restructuring accrual account: (in thousands) Severance-related accruals Restructuring- related accruals Total Balance as of September 30, 2018 7 75 82 Expense - charged to accrual 57 — 57 Payments and accrual adjustments (13 ) (41 ) (54 ) Balance as of December 31, 2018 $ 51 $ 34 $ 85 |
Schedule of Product Warranty Accruals | The following table summarizes the changes in our product warranty accrual accounts: Product Warranty Accruals For the three months ended December 31, (in thousands) 2018 2017 Balance at beginning of period $ 642 $ 684 Provision for product warranty - expense 56 58 Adjustments and utilization of warranty accrual (46 ) (29 ) Balance at end of period $ 652 $ 713 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Stock Options Activity | The following table summarizes stock option activity under the Equity Plans for the three months ended December 31, 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, 2018 69,980 $4.74 Granted — — Exercised — — — Forfeited (52 ) $3.97 Expired (1,267 ) $5.21 Outstanding as of December 31, 2018 68,661 $4.73 4.93 $ 11 Exercisable as of December 31, 2018 47,122 $4.77 4.04 $ 10 Vested and expected to vest as of December 31, 2018 68,661 $4.73 4.93 $ 11 (*) Intrinsic value for stock options represents the “in-the-money” portion or the positive variance between a stock option's exercise price and the underlying stock price. For the three months ended December 31, 2017 , the intrinsic value of options exercised was $13,000 . |
Schedule of Restricted Stock Activity | The following table summarizes the activity related to RSUs and RSAs subject to time-based vesting requirements for the three months ended December 31, 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, 2018 1,011,621 $6.04 8,154 $8.20 Granted 10,000 $4.48 — $0.00 Vested (93,422 ) $6.84 — $0.00 Forfeited (117,108 ) $4.73 — $0.00 Non-vested as of December 31, 2018 811,091 $6.12 8,154 $8.20 |
Schedule of Performance Share Activity | The following table summarizes the activity related to PSUs and PRSAs for the three months ended December 31, 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, 2018 397,777 $8.48 33,333 $12.25 Granted — $0.00 — $0.00 Vested (30,874 ) $7.14 — $0.00 Forfeited (132,579 ) $7.24 — $0.00 Non-vested as of December 31, 2018 234,324 $9.35 33,333 $12.25 |
Schedule of Stock-based Compensation Expense - By Award Type | The effect of recording stock-based compensation expense was as follows: Stock-based Compensation Expense - by award type For the three months ended December 31, (in thousands) 2018 2017 Employee stock options $ 7 $ 10 Restricted stock units and awards 386 451 Performance stock units and awards (60 ) 289 Employee stock purchase plan 40 86 Outside director equity awards and fees in common stock 52 79 Total stock-based compensation expense $ 425 $ 915 |
Schedule of Stock-based Compensation Expense - By Expense Type | Stock-based Compensation Expense - by expense type For the three months ended December 31, (in thousands) 2018 2017 Cost of revenue $ 111 $ 139 Selling, general, and administrative 159 638 Research and development 155 138 Total stock-based compensation expense $ 425 $ 915 |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per share: Basic and Diluted Net Loss Per Share For the three months ended December 31, (in thousands, except per share) 2018 2017 Numerator: Loss from continuing operations $ (5,538 ) $ (82 ) Undistributed earnings allocated to common shareholders for basic and diluted net income per share (5,538 ) (82 ) Denominator: Denominator for basic and fully diluted net loss per share - weighted average shares outstanding 27,534 27,032 Net loss per basic and fully diluted share $ (0.20 ) $ — Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation 664 911 Average market price of common stock $ 4.69 $ 7.50 |
Schedule of Common Stock Reserved for Future Issuances | As of December 31, 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 68,661 Unvested restricted stock units 811,091 Unvested performance stock units and awards (at 200% maximum payout) 535,314 Purchases under the employee stock purchase plan 740,558 Issuance of stock-based awards under the Equity Plans 1,879,160 Purchases under the officer and director share purchase plan 88,741 Total reserved 4,123,525 |
Geographical Information (Table
Geographical Information (Tables) | 3 Months Ended |
Dec. 31, 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 three months ended December 31, (in thousands) 2018 2017 United States and Canada $ 18,576 $ 20,079 Asia 4,045 2,657 Europe 1,266 1,227 Other 114 73 Total revenue $ 24,001 $ 24,036 |
Description of Business (Busine
Description of Business (Business Overview) (Details) | 3 Months Ended |
Dec. 31, 2018product_linesegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reporting segments | segment | 1 |
Number of product lines | product_line | 3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Accounting Policies [Abstract] | ||
Receivables, net | $ 18.4 | $ 19.3 |
Transaction price allocated to performance obligation | $ 4.3 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | ||
Accounting Policies [Abstract] | ||
Performance obligations expected to be recognized over next twelve months (percentage) | 84.00% | |
Performance obligation satisfaction period (months) | 12 months |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Revenue by Product) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 24,001 | $ 24,036 |
Broadband | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 17,327 | 20,866 |
Chips | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,215 | 2,151 |
Navigation | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 2,459 | $ 1,019 |
Product Concentration Risk | Revenue from Contract with Customer | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 100.00% | 100.00% |
Product Concentration Risk | Revenue from Contract with Customer | Broadband | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 72.00% | 87.00% |
Product Concentration Risk | Revenue from Contract with Customer | Chips | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 18.00% | 9.00% |
Product Concentration Risk | Revenue from Contract with Customer | Navigation | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 10.00% | 4.00% |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Cash and Cash Equivalents [Abstract] | ||||
Cash | $ 2,619 | $ 2,965 | $ 3,769 | |
Cash equivalents | 54,665 | 60,152 | 60,431 | |
Restricted cash | 11 | 78 | 33 | |
Total cash, cash equivalents and restricted cash | $ 57,295 | $ 63,195 | $ 64,233 | $ 68,754 |
Accounts Receivable (Schedule o
Accounts Receivable (Schedule of Components of Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Receivables [Abstract] | ||
Accounts receivable, gross | $ 18,684 | $ 19,823 |
Allowance for doubtful accounts | (322) | (548) |
Accounts receivable, net | $ 18,362 | $ 19,275 |
Accounts Receivable (Allowance
Accounts Receivable (Allowance for Doubtful Accounts Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Balance at beginning of period | $ 548 | $ 22 |
Provision adjustment - expense, net of recoveries | 0 | 17 |
Write-offs and other adjustments - deductions to receivable balances | (226) | 0 |
Balance at end of period | $ 322 | $ 39 |
Inventory (Schedule of Componen
Inventory (Schedule of Components of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 11,951 | $ 11,857 |
Work in-process | 5,515 | 5,402 |
Finished goods | 4,415 | 5,024 |
Inventory balance at end of period | 21,881 | 22,283 |
Current portion | 20,466 | 20,850 |
Non-Current portion | 1,415 | $ 1,433 |
Inventory valuation reserve | $ 400 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, net (Schedule of Property, Plant, and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 48,840 | $ 46,359 |
Accumulated depreciation | (29,752) | (28,143) |
Property, plant, and equipment, net | 19,088 | 18,216 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 37,025 | 36,625 |
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 | 2,934 | 2,928 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 2,089 | 2,049 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 5,683 | $ 3,648 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Schedule of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Payables and Accruals [Abstract] | ||
Compensation | $ 2,826 | $ 3,065 |
Warranty | 652 | 642 |
Professional fees | 1,095 | 604 |
Customer deposits | 285 | 22 |
Deferred revenue | 474 | 368 |
Income and other taxes | 9,311 | 7,593 |
Severance and restructuring accruals | 85 | 82 |
Other | 1,280 | 1,829 |
Accrued expenses and other current liabilities | $ 16,008 | $ 14,205 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities (Severance and Restructuring Accruals) (Narrative) (Details) - Chief Financial Officer - USD ($) | Dec. 04, 2018 | Dec. 31, 2018 |
Payables and Accruals [Line Items] | ||
Estimated charge related to separation agreement | $ 100,000 | |
Base salary continuance period | 56 days | |
Employee Severance | ||
Payables and Accruals [Line Items] | ||
Payment per Separation Agreement | $ 22,875 |
Accrued Expenses and Other Cu_5
Accrued Expenses and Other Current Liabilities (Schedule of Restructuring and Related Costs) (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance as of September 30, 2018 | $ 82 |
Expense - charged to accrual | 57 |
Payments and accrual adjustments | (54) |
Balance as of December 31, 2018 | 85 |
Severance-related accruals | |
Restructuring Reserve [Roll Forward] | |
Balance as of September 30, 2018 | 7 |
Expense - charged to accrual | 57 |
Payments and accrual adjustments | (13) |
Balance as of December 31, 2018 | 51 |
Restructuring- related accruals | |
Restructuring Reserve [Roll Forward] | |
Balance as of September 30, 2018 | 75 |
Expense - charged to accrual | 0 |
Payments and accrual adjustments | (41) |
Balance as of December 31, 2018 | $ 34 |
Accrued Expenses and Other Cu_6
Accrued Expenses and Other Current Liabilities (Schedule of Product Warranty Accruals) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 642 | $ 684 |
Provision for product warranty - expense | 56 | 58 |
Adjustments and utilization of warranty accrual | (46) | (29) |
Balance at end of period | $ 652 | $ 713 |
Credit Facilities (Narrative) (
Credit Facilities (Narrative) (Details) - Revolving Credit Facility | Jul. 27, 2017 | Jan. 31, 2019USD ($)letter_of_credit | Dec. 31, 2018USD ($)letter_of_credit |
Line of Credit Facility [Line Items] | |||
Liquidity requirement, minimum | $ 25,000,000 | ||
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 | $ 5,500,000 | ||
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 (Narrati
Income and Other Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax (expense) benefit | $ (15) | $ 333 | |
Effective tax rate on continuing operations | 0.00% | (80.20%) | |
Interest and penalties accrued as tax liabilities | $ 400 | $ 400 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Thousands | 3 Months Ended | ||||
Dec. 31, 2018USD ($)building | Dec. 31, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017building | May 31, 2016 | |
Loss Contingencies [Line Items] | |||||
Rent expense | $ 300 | $ 300 | |||
Risk-free rate, minimum | 1.20% | ||||
Risk-free rate, maximum | 4.20% | ||||
Accretion expense | $ 14 | $ 17 | |||
Property in Alhambra, California | |||||
Loss Contingencies [Line Items] | |||||
ARO liability | 1,800 | $ 1,800 | |||
Property in Beijing, China | |||||
Loss Contingencies [Line Items] | |||||
Lease length in years | 5 years | ||||
ARO liability | $ 100 | $ 100 | |||
Property Subject to Operating Lease | Building | |||||
Loss Contingencies [Line Items] | |||||
Number of buildings leased | building | 6 | ||||
Number of buildings with new leases signed | building | 4 | ||||
Lease length in years | 3 years | ||||
Lease option length in years | 3 years |
Equity (Narrative) (Details)
Equity (Narrative) (Details) | 3 Months Ended |
Dec. 31, 2018plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of equity incentive compensation plans maintained by the company | 3 |
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 |
Equity (Schedule of Stock Optio
Equity (Schedule of Stock Options Activity) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | ||
Outstanding, beginning of period (in shares) | 69,980 | |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | 0 | |
Forfeited (in shares) | (52) | |
Expired (in shares) | (1,267) | |
Outstanding, end of period (in shares) | 68,661 | |
Exercisable (in shares) | 47,122 | |
Vested and expected to vest (in shares) | 68,661 | |
Weighted Average Exercise Price | ||
Outstanding, beginning of period (in usd per share) | $ 4.74 | |
Granted (in usd per share) | 0 | |
Exercised (in usd per share) | 0 | |
Forfeited (in usd per share) | 3.97 | |
Expired (in usd per share) | 5.21 | |
Outstanding, ending of period (in usd per share) | 4.73 | |
Exercisable (in usd per share) | 4.77 | |
Vested and expected to vest (in usd per share) | $ 4.73 | |
Weighted Average Remaining Contractual Life (in years) | ||
Weighted average remaining contractual life, outstanding (in years) | 4 years 11 months 5 days | |
Weighted average remaining contractual life, exercisable (in years) | 4 years 15 days | |
Weighted average remaining contractual term, vested and expected to vest (in years) | 4 years 11 months 5 days | |
Aggregate Intrinsic Value | ||
Intrinsic value of shared outstanding | $ 11,000 | |
Intrinsic value of shares exercisable | 10,000 | |
Intrinsic value of shares vested and expected to vest | 11,000 | |
Intrinsic value of options exercised | 0 | $ 13,000 |
Employee Stock Option | ||
Aggregate Intrinsic Value | ||
Unrecognized stock-based compensation expense | $ 44,000 | |
Expected weighted average recognition period | 1 year 9 months 18 days |
Equity (Schedule of Restricted
Equity (Schedule of Restricted Stock Activity) (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Sep. 30, 2018 | |
Restricted Stock Units | ||
Number of Shares | ||
Non-vested, beginning balance (in shares) | 1,011,621 | |
Granted (in shares) | 10,000 | |
Vested (in shares) | (93,422) | |
Forfeited (in shares) | (117,108) | |
Non-vested, ending balance (in shares) | 811,091 | 1,011,621 |
Weighted Average Grant Date Fair Value | ||
Non-vested, beginning balance (in usd per share) | $ 6.04 | |
Weighted average fair value (in usd per share) | 4.48 | $ 6.73 |
Vested (in usd per share) | 6.84 | |
Forfeited (in usd per share) | 4.73 | |
Non-vested, ending balance (in usd per share) | $ 6.12 | $ 6.04 |
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 | |
Weighted average fair value (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 |
Minimum | Equity Incentive Plans 2012 and 2010 | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 3 years | |
Maximum | Equity Incentive Plans 2012 and 2010 | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 4 years |
Equity (Restricted Stock Narrat
Equity (Restricted Stock Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value vested | $ 200 | $ 1,400 | |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unamortized stock-based compensation expense | $ 4,100 | ||
Weighted average remaining service period (in years) | 2 years 7 months 28 days | ||
Unvested stock units (in shares) | 811,091 | 1,011,621 | |
Unvested stock units | $ 3,400 | ||
Unvested stock units weighted average remaining contractual term (in years) | 1 year 6 months 29 days | ||
Intrinsic value vested | $ 400 | $ 300 | |
Weighted average fair value (in usd per share) | $ 4.48 | $ 6.73 | |
Granted (in shares) | 10,000 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unamortized stock-based compensation expense | $ 39 | ||
Weighted average remaining service period (in years) | 1 year 9 months 18 days | ||
Unvested stock units (in shares) | 8,154 | 8,154 | |
Weighted average fair value (in usd per share) | $ 0 | ||
Granted (in shares) | 0 |
Equity (Schedule of Performance
Equity (Schedule of Performance Stock Activity) (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Sep. 30, 2018 | |
Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amount considered issued and outstanding (as percentage of target number of shares) | 200.00% | |
Number of Shares | ||
Non-vested, beginning balance (in shares) | 397,777 | |
Granted (in shares) | 0 | |
Vested (in shares) | (30,874) | |
Forfeited (in shares) | (132,579) | |
Non-vested, ending balance (in shares) | 234,324 | 397,777 |
Weighted Average Grant Date Fair Value | ||
Non-vested, beginning balance (in usd per share) | $ 8.48 | |
Granted (in usd per share) | 0 | $ 7.62 |
Vested (in usd per share) | 7.14 | |
Forfeited (in usd per share) | 7.24 | |
Non-vested, ending balance (in usd per share) | $ 9.35 | $ 8.48 |
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 |
Two Thousand Twelve Equity Incentive Plan | Minimum | Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 1 year | |
Two Thousand Twelve Equity Incentive Plan | Maximum | Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 3 years |
Equity (Performance Stock Narra
Equity (Performance Stock Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value vested | $ 0.2 | $ 1.4 | |
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unamortized stock-based compensation expense | $ 1.2 | ||
Weighted average remaining service period (in years) | 1 year 8 months 19 days | ||
Unvested stock units (in shares) | 234,324 | 397,777 | |
Intrinsic value of non-vested and expected to vest PSUs | $ 1 | ||
Average remaining contractual term (in years) | 1 year 8 months 19 days | ||
Weighted average fair value (in usd per share) | $ 0 | $ 7.62 | |
Granted (in shares) | 0 | ||
Amount considered issued and outstanding (as percentage of target number of shares) | 200.00% | ||
Vested (in shares) | 30,874 | ||
Performance Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unamortized stock-based compensation expense | $ 0.2 | ||
Weighted average remaining service period (in years) | 9 months 15 days | ||
Unvested stock units (in shares) | 33,333 | 33,333 | |
Weighted average fair value (in usd per share) | $ 0 | ||
Granted (in shares) | 0 | ||
Vested (in shares) | 0 |
Equity (Schedule of Stock-based
Equity (Schedule of Stock-based Compensation Expense - by Award Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 425 | $ 915 |
Employee stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 7 | 10 |
Restricted stock units and awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 386 | 451 |
Performance stock units and awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | (60) | 289 |
Employee stock purchase plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 40 | 86 |
Outside director equity awards and fees in common stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 52 | $ 79 |
Equity (Schedule of Stock-bas_2
Equity (Schedule of Stock-based Compensation Expense - by Expense Category) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 425 | $ 915 |
Cost of revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 111 | 139 |
Selling, general, and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 159 | 638 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 155 | $ 138 |
Equity (401k) (Details)
Equity (401k) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | ||
Matching contribution | $ 0.1 | $ 0.1 |
Equity (Schedule of Earnings pe
Equity (Schedule of Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | ||
Loss from continuing operations | $ (5,538) | $ (82) |
Net loss | $ (5,538) | $ (82) |
Weighted-average number of basic and diluted shares outstanding (in shares) | 27,534 | 27,032 |
Net loss per basic and fully diluted share (in dollars per share) | $ (0.20) | $ 0 |
Weighted average shares excluded from computation (in shares) | 664 | 911 |
Average market price of common stock (in dollars per share) | $ 4.69 | $ 7.50 |
Equity (Employee Stock Purchase
Equity (Employee Stock Purchase Plan) (Details) | 3 Months Ended |
Dec. 31, 2018USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for issuance under the ESPP (in shares) | shares | 740,558 |
Employee stock purchase plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
ESPP offering period (months) | 6 months |
Purchase price (as percentage of market price) | 85.00% |
Annual contribution (as percentage of compensation) | 10.00% |
Annual contribution | $ | $ 25,000 |
Equity (Schedule of Common Stoc
Equity (Schedule of Common Stock Reserved for Future Issuances) (Details) - shares | Dec. 31, 2018 | Sep. 30, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise of outstanding stock options (in shares) | 68,661 | 69,980 |
Purchases under the employee stock purchase plan (in shares) | 740,558 | |
Issuance of stock-based awards under the Equity Plans (in shares) | 1,879,160 | |
Purchases under the officer and director share purchase plan (in shares) | 88,741 | |
Total reserved (in shares) | 4,123,525 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock units (in shares) | 811,091 | 1,011,621 |
Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum payout (percentage) | 200.00% | |
Unvested stock units (in shares) | 234,324 | 397,777 |
Unvested performance stock units (in shares) | 535,314 |
Geographical Information (Sched
Geographical Information (Schedule of Revenue by Geographic Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenue by Geographic Region | $ 24,001 | $ 24,036 |
United States and Canada | ||
Segment Reporting Information [Line Items] | ||
Revenue by Geographic Region | 18,576 | 20,079 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Revenue by Geographic Region | 4,045 | 2,657 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Revenue by Geographic Region | 1,266 | 1,227 |
Other | ||
Segment Reporting Information [Line Items] | ||
Revenue by Geographic Region | $ 114 | $ 73 |
Geographical Information (Narra
Geographical Information (Narrative) (Details) | 3 Months Ended | ||
Dec. 31, 2018segmentcustomers | Dec. 31, 2017customers | Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of reporting segments | segment | 1 | ||
Concentration risk, customers | customers | 4 | 2 | |
Percentage of long-lived assets located in the United States | 65.00% | 49.00% | |
Customer Concentration Risk | Sales Revenue, Segment | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Concentration risk percentage | 74.00% | 63.00% |