Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2020 | Aug. 03, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36632 | |
Entity Registrant Name | EMCORE CORP | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-2746503 | |
Entity Address, Address Line One | New Jersey | |
Entity Address, City or Town | Alhambra | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91803 | |
City Area Code | 626 | |
Local Phone Number | 293-3400 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | EMKR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 29,408,087 | |
Entity Central Index Key | 0000808326 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --09-30 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 27,266,000 | $ 17,219,000 | $ 76,598,000 | $ 62,965,000 |
Cost of revenue | 18,048,000 | 13,515,000 | 53,479,000 | 47,644,000 |
Gross profit | 9,218,000 | 3,704,000 | 23,119,000 | 15,321,000 |
Operating expense: | ||||
Selling, general, and administrative | 5,936,000 | 9,288,000 | 18,962,000 | 23,877,000 |
Research and development | 4,807,000 | 4,629,000 | 14,033,000 | 13,008,000 |
Gain from change in estimate on ARO obligation | 0 | (40,000) | ||
Gain on sale of assets | (312,000) | (2,229,000) | 0 | |
Total operating expense | 10,431,000 | 13,917,000 | 30,766,000 | 36,845,000 |
Operating loss | (1,213,000) | (10,213,000) | (7,647,000) | (21,524,000) |
Other income: | ||||
Interest (expense) income, net | (40,000) | 99,000 | (54,000) | 590,000 |
Foreign exchange (loss) gain | (20,000) | (349,000) | (29,000) | (31,000) |
Total other (expense) income | (60,000) | (250,000) | (83,000) | 559,000 |
Loss before income tax (expense) benefit | (1,273,000) | (10,463,000) | (7,730,000) | (20,965,000) |
Income tax (expense) benefit | (14,000) | (14,000) | 27,000 | (44,000) |
Net loss | (1,287,000) | (10,477,000) | (7,703,000) | (21,009,000) |
Foreign exchange translation adjustment | 2,000 | 9,000 | (5,000) | 36,000 |
Comprehensive loss | $ (1,285,000) | $ (10,468,000) | $ (7,708,000) | $ (20,973,000) |
Per share data: | ||||
Net loss per basic and diluted share (in dollars per share) | $ (0.04) | $ (0.37) | $ (0.27) | $ (0.76) |
Weighted-average number of basic and diluted shares outstanding (in shares) | 29,295 | 28,005 | 29,052 | 27,730 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 29,497 | $ 21,574 |
Restricted cash | 185 | 403 |
Accounts receivable, net of allowance of $303 and $148, respectively | 19,854 | 18,497 |
Contract assets | 2,079 | 1,055 |
Inventory | 24,410 | 24,051 |
Prepaid expenses and other current assets | 5,440 | 6,389 |
Assets held for sale | 1,580 | 0 |
Total current assets | 83,045 | 71,969 |
Property, plant, and equipment, net | 21,210 | 37,223 |
Goodwill | 69 | 69 |
Operating lease right-of-use assets | 14,886 | 0 |
Other intangible assets, net | 211 | 239 |
Other non-current assets | 217 | 62 |
Total assets | 119,638 | 109,562 |
Current liabilities: | ||
Borrowings from credit facility | 5,497 | |
PPP liability - current | 2,458 | 0 |
Accounts payable | 13,075 | 10,701 |
Accrued expenses and other current liabilities | 10,788 | 14,521 |
Operating lease liabilities - current | 1,020 | 0 |
Total current liabilities | 27,341 | 30,719 |
PPP liability - non-current | 4,030 | 0 |
Operating lease liabilities - non-current | 13,981 | 0 |
Asset retirement obligations | 2,014 | 1,890 |
Other long-term liabilities | 207 | |
Total liabilities | 47,366 | 32,816 |
Commitments and contingencies (Note 13) | ||
Shareholders' equity: | ||
Common stock, no par value, 50,000 shares authorized; 36,318 shares issued and 29,408 shares outstanding as of June 30, 2020; 35,803 shares issued and 28,893 shares outstanding as of September 30, 2019 | 743,160 | 739,926 |
Treasury stock at cost; 6,910 shares | (47,721) | (47,721) |
Accumulated other comprehensive income | 945 | 950 |
Accumulated deficit | (624,112) | (616,409) |
Total shareholders' equity | 72,272 | 76,746 |
Total liabilities and shareholders' equity | $ 119,638 | $ 109,562 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Accounts receivable: | ||
Allowance for doubtful accounts | $ 303 | $ 148 |
Shareholders' equity: | ||
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 36,318,000 | 35,803,000 |
Common stock, shares outstanding (in shares) | 29,408,000 | 28,893,000 |
Treasury stock, shares held (in shares) | 6,910,000 | 6,910,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Total |
Beginning balance (in shares) at Sep. 30, 2018 | 27,577 | ||||
Common Stock, Number of Shares [Abstract] | |||||
Stock-based compensation (in shares) | 305 | ||||
Stock option exercises (in shares) | 1 | ||||
Issuance of common stock for acquisition (in shares) | 811 | ||||
Issuance of common stock - ESPP (in shares) | 66 | ||||
Ending balance (in shares) at Jun. 30, 2019 | 28,760 | ||||
Balance, beginning of period at Sep. 30, 2018 | $ 734,066 | $ 885 | $ (580,425) | ||
Common Stock, Number of Shares [Abstract] | |||||
Stock-based compensation | 1,824 | ||||
Stock option exercises | 1 | ||||
Tax withholding paid on behalf of employees for stock-based awards | (203) | ||||
Issuance of common stock for acquisition | 2,916 | ||||
Issuance of common stock - ESPP | 237 | ||||
Translation adjustment | 36 | $ 36 | |||
Net loss | (21,009) | (21,009) | |||
Balance, end of period at Jun. 30, 2019 | $ 738,841 | $ (47,721) | 921 | (601,434) | 90,607 |
Beginning balance (in shares) at Mar. 31, 2019 | 27,856 | ||||
Common Stock, Number of Shares [Abstract] | |||||
Stock-based compensation (in shares) | 93 | ||||
Stock option exercises (in shares) | 0 | ||||
Issuance of common stock for acquisition (in shares) | 811 | ||||
Ending balance (in shares) at Jun. 30, 2019 | 28,760 | ||||
Balance, beginning of period at Mar. 31, 2019 | $ 735,257 | 912 | (590,957) | ||
Common Stock, Number of Shares [Abstract] | |||||
Stock-based compensation | 677 | ||||
Stock option exercises | 0 | ||||
Tax withholding paid on behalf of employees for stock-based awards | (9) | ||||
Issuance of common stock for acquisition | 2,916 | ||||
Translation adjustment | 9 | 9 | |||
Net loss | (10,477) | (10,477) | |||
Balance, end of period at Jun. 30, 2019 | $ 738,841 | (47,721) | 921 | (601,434) | $ 90,607 |
Beginning balance (in shares) at Sep. 30, 2019 | 28,893 | 28,893 | |||
Common Stock, Number of Shares [Abstract] | |||||
Stock-based compensation (in shares) | 283 | ||||
Stock option exercises (in shares) | 1 | ||||
Issuance of restricted stock units (shares) | 116 | ||||
Issuance of common stock - ESPP (in shares) | 115 | ||||
Ending balance (in shares) at Jun. 30, 2020 | 29,408 | 29,408 | |||
Balance, beginning of period at Sep. 30, 2019 | $ 739,926 | 950 | (616,409) | ||
Common Stock, Number of Shares [Abstract] | |||||
Stock-based compensation | 2,625 | ||||
Stock option exercises | 2 | ||||
Tax withholding paid on behalf of employees for stock-based awards | (82) | ||||
Issuance of restricted stock units | 410 | ||||
Issuance of common stock - ESPP | 279 | ||||
Translation adjustment | (5) | $ (5) | |||
Net loss | (7,703) | (7,703) | |||
Balance, end of period at Jun. 30, 2020 | $ 743,160 | (47,721) | 945 | (624,112) | $ 72,272 |
Beginning balance (in shares) at Mar. 31, 2020 | 29,291 | ||||
Common Stock, Number of Shares [Abstract] | |||||
Stock-based compensation (in shares) | 117 | ||||
Stock option exercises (in shares) | 0 | ||||
Ending balance (in shares) at Jun. 30, 2020 | 29,408 | 29,408 | |||
Balance, beginning of period at Mar. 31, 2020 | $ 742,416 | 943 | (622,825) | ||
Common Stock, Number of Shares [Abstract] | |||||
Stock-based compensation | 779 | ||||
Stock option exercises | 0 | ||||
Tax withholding paid on behalf of employees for stock-based awards | (35) | ||||
Translation adjustment | 2 | $ 2 | |||
Net loss | (1,287) | (1,287) | |||
Balance, end of period at Jun. 30, 2020 | $ 743,160 | $ (47,721) | $ 945 | $ (624,112) | $ 72,272 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (7,703) | $ (21,009) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization expense | 4,359 | 5,011 |
Stock-based compensation expense | 2,625 | 1,824 |
Provision adjustments related to doubtful accounts | 188 | 62 |
Provision adjustments related to product warranty | 178 | 139 |
Net gain on disposal of property, plant and equipment | (2,229) | 0 |
Issuance of restricted stock units | 410 | 0 |
Other | (113) | (72) |
Total non-cash adjustments | 5,418 | 6,964 |
Changes in operating assets and liabilities: | ||
Accounts receivable anc contract assets | (2,566) | 5,119 |
Inventory | (293) | (1,211) |
Other assets | (13,706) | (3,899) |
Accounts payable | 2,738 | (4,508) |
Accrued expenses and other current liabilities | 10,707 | 6,835 |
Total change in operating assets and liabilities | (3,120) | 2,336 |
Net cash used in operating activities | (5,405) | (11,709) |
Cash flows from investing activities: | ||
Purchase of equipment | (3,391) | (8,615) |
Acquisition of business, net of cash acquired | 0 | (22,246) |
Proceeds from disposal of property, plant and equipment | 15,300 | 0 |
Net cash provided by (used in) investing activities | 11,909 | (30,861) |
Cash flows from financing activities: | ||
Net payments on credit facilities | (5,497) | 0 |
Proceeds from PPP loan | 6,488 | 0 |
Proceeds from exercise of equity awards | 281 | 238 |
Taxes paid related to net share settlement of equity awards | (82) | (203) |
Net cash provided by financing activities | 1,190 | 35 |
Effect of exchange rate changes provided by foreign currency | 11 | 1 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 7,705 | (42,534) |
Cash, cash equivalents and restricted cash at beginning of period | 21,977 | 63,195 |
Cash, cash equivalents and restricted cash at end of period | 29,682 | 20,661 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid during the period for interest | 98 | 96 |
Cash paid during the period for income taxes | 60 | 59 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Changes in accounts payable related to purchases of equipment | $ (357) | $ (338) |
Description of Business
Description of Business | 9 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | NOTE 1. 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 (“CATV”) directly on fiber, and today is a leading provider of advanced Mixed-Signal Optics Mixed-Signal Optics Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim information, and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X 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 adjustments, which are all normal recurring 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, 2019 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, 2019. Critical Accounting Policies and Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, as of the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. If these estimates differ significantly from actual results, the impact to the condensed consolidated financial statements may be material. There have been no material changes in our critical accounting policies and estimates from those disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019. Please refer to Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 for a discussion of our critical accounting policies and estimates. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | NOTE 2. Recent Accounting Pronouncements (a) New Accounting Updates Recently Adopted ● In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. The new standard was effective for our fiscal year beginning October 1, 2019. We adopted Topic 842 using the modified retrospective approach. The modified retrospective approach provides a method for recording existing leases at the beginning of the period of adoption. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed us to carry forward the historical lease classification and we elected the hindsight practical expedient to determine the lease term for existing leases. Additionally, the Company elected an accounting policy to not record operating lease right-of-use (“ROU”) assets and lease liabilities for leases with an initial term of twelve months or less on its condensed consolidated balance sheet. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Adoption of the new standard resulted in the recording of net operating lease ROU assets of $4.8 million and operating lease liabilities of $4.8 million, as of October 1, 2019. The standard did not have an impact on our consolidated results of operations or cash flow. ● The impact of the adoption of Accounting Standards Codification (“ASC”) 842 on the balance sheet as of October 1, 2019 was: As Reported Balance September 30, 2019 Increase October 1, 2019 ( in thousands Operating lease right-of-use assets $ - $ 4,800 $ 4,800 Total assets 109,562 4,800 114,362 Operating lease liabilities - 800 800 Total current liabilities 30,719 800 31,519 Operating lease liabilities non-current - 4,000 4,000 Total liabilities 32,816 4,800 37,616 Total liabilities and equity 109,562 4,800 114,362 In connection with the sale/leaseback of non-residential real estate on February 10, 2020, the Company recorded an additional operating ROU assets and operating lease liabilities million during the nine months ended June 30, 2020. See also Note 9 – Property, Plant and Equipment, net (b) Recent Accounting Standards or Updates Not Yet Effective ● In June 2016, the FASB issued ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): 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. The Company is currently evaluating the new guidance to determine the impact it may have on its condensed consolidated financial statements and related disclosures. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 3. 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, 2019. Significant changes to our accounting policies as a result of adopting Topic 842 are discussed below: The Company determines if an arrangement is a lease at its inception. ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate in determining the present value of lease payments considering the term of the lease, which is derived from information available at the lease commencement date. The lease term includes renewal options when it is reasonably certain that the option will be exercised, and excludes termination options. To the extent that the Company’s agreements have variable lease payments, the Company includes variable lease payments that depend on an index or a rate and excludes those that depend on facts or circumstances occurring after the commencement date, other than the passage of time. Lease expense for these leases is recognized on a straight-line basis over the lease term. The Company has elected not to recognize ROU assets and lease liabilities that arise from short-term (12 months or less) leases for any class of underlying asset. Operating leases are included in operating lease ROU assets, current operating lease liabilities, and non-current operating lease liabilities in the Company's condensed consolidated balance sheet. The Company’s lease arrangements consist primarily of corporate, manufacturing and other facility agreements as well as various office equipment agreements. The leases expire at various dates through 2035, some of which include options to extend the lease term. The options with the longest potential total lease term consist of options for extension of up to five years following expiration of the original lease term. During the three and nine months ended June 30, 2020, the Company recorded $0.6 million and $1.3 million of operating lease expense, respectively. During the three and nine months ended June 30, 2019, the Company recorded $0.3 million and $1.0 million of rent expense, respectively. The Company's finance leases and short-term leases are immaterial. Supplemental cash information and non-cash activities related to operating leases are as follows (in thousands): Nine Months Ended June 30, 2020 Operating cash outflows from operating leases $ 1,111 Operating lease assets obtained in exchange for new lease liabilities $ 10,791 Maturities of operating lease liabilities as of June 30, 2020 were as follows (in thousands): Amount 2020 $ 1,788 2021 1,830 2022 1,849 2023 1,730 2024 1,719 Thereafter 12,802 Total lease payments 21,718 Less imputed interest (6,717) Total $ 15,001 The following is a schedule of future minimum operating lease payments as of September 30, 2019 (in thousands): Amount 2020 $ 988 2021 839 2022 824 2023 853 2024 655 Thereafter 1,350 Total lease payments $ 5,509 Weighted-average remaining lease term and discount rate related to operating leases are as follows: June 30, 2020 Weighted average remaining lease term (years) 14.7 Weighted average discount rate 6.1 % Disaggregation of Revenue - Note 15 - Geographical Information Revenue is also classified by major product category and is presented below: For the three months ended June 30, For the nine months ended June 30, % of % of % of % of (in thousands) 2020 Revenue 2019 Revenue 2020 Revenue 2019 Revenue Navigation and Inertial Sensing $ 9,861 36 % 5,604 32 % $ 28,970 38 % 12,157 19 % Defense Optoelectronics 4,164 16 % 2,514 15 % 11,772 15 % 6,974 11 % CATV Lasers and Transmitters 10,905 40 % 6,849 40 % 29,070 38 % 32,383 52 % Chip Devices 1,443 5 % 1,854 11 % 4,033 5 % 9,570 15 % Other 893 3 % 398 2 % 2,753 4 % 1,881 3 % Total revenue $ 27,266 100 % $ 17,219 100 % $ 76,598 100 % $ 62,965 100 % |
Acquisition
Acquisition | 9 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisition | NOTE 4. Acquisition On June 7, 2019, we completed the acquisition of Systron Donner Inertial, Inc. (“SDI”), a private-equity backed navigation systems provider with a scalable, chip-based platform for higher volume gyro applications utilizing Quartz MEMS technology. The total purchase price was approximately $25.0 million, consisting of (i) approximately $22.0 million in cash after working capital adjustments and (ii) the issuance of 811,000 shares of common stock with an aggregate value of approximately $3.0 million as of the closing date. Following the closing, we incorporated SDI’s products into our Navigation and Inertial Sensing product line and have included the financial results of SDI in our condensed consolidated financial statements beginning on the acquisition date. Net revenue and net income of SDI of $7.7 million and $1.1 million, respectively, is included in our condensed consolidated statements of operations and comprehensive loss for the three months ended June 30, 2020. Net revenue and net loss of SDI of $22.1 million and $0.3 million, respectively, is included in our condensed consolidated statements of operations and comprehensive loss for the nine months ended June 30, 2020. Net revenue and net loss of SDI from the acquisition date of $2.0 million and $5,000, respectively, was included in our condensed consolidated statements of operations and comprehensive loss for the three and nine months ended June 30, 2019. Purchase Price Allocation The total purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The Company finalized the allocation of the purchase price in the quarter ended March 31, 2020, which resulted in no change from the preliminary purchase price recorded at September 30, 2019. The table below represents the purchase price allocation to the assets acquired and liabilities assumed of SDI based on their estimated fair values as of the acquisition date. The fair values assigned to assets acquired and liabilities assumed were based on management’s best estimates and assumptions at the acquisition date. Weighted Average Useful (in thousands) Amount Life (years) Purchase price $ 24,978 Developed technology 250 7 Cash acquired 541 Inventories 8,522 Accounts receivable 4,291 Other assets 355 Land and building 12,890 Equipment 2,913 Net liabilities assumed (4,853) Goodwill $ 69 Pro Forma Financial Information The following unaudited pro forma financial information presented for the three and nine months ended June 30, 2020 and 2019 does not purport to be indicative of the results of operations that would have been achieved had the acquisition been consummated on October 1, 2018, nor of the results which may occur in the future. The pro forma amounts are based upon available information and certain assumptions that the Company believes are reasonable. For the three months ended For the nine months ended June 30, June 30, ( in thousands, except per share data 2020 2019 2020 2019 Revenue $ 27,266 $ 21,976 $ 76,598 $ 84,911 Net loss $ (1,287) $ (14,024) $ (7,703) $ (27,069) Net loss per basic and diluted share $ (0.04) $ (0.50) $ (0.27) $ (0.98) Weighted-average number of basic and diluted shares outstanding 29,295 28,005 29,052 27,730 |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 9 Months Ended |
Jun. 30, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | NOTE 5. 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 June 30, September 30, June 30, (in thousands) 2020 2019 2019 Cash $ 10,435 $ 4,338 $ 3,368 Cash equivalents 19,062 17,236 17,135 Restricted cash 185 403 158 Total cash, cash equivalents and restricted cash $ 29,682 21,977 20,661 The Company’s restricted cash includes cash balances which are legally or contractually restricted in use. The Company’s restricted cash is included in current assets as of June 30, 2020, September 30, 2019 and June 30, 2019. |
Fair Value Accounting
Fair Value Accounting | 9 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Accounting | NOTE 6. Fair Value Accounting ASC Topic 820 (“ASC 820”), Fair Value Measurements, 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, contract assets, other current assets, and accounts payable approximate fair value because of the short maturity of these instruments. See Note 4 - Acquisition |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | NOTE 7. Accounts Receivable The components of accounts receivable consisted of the following: As of (in thousands) June 30, 2020 September 30, 2019 Accounts receivable, gross $ 20,157 $ 18,645 Allowance for doubtful accounts (303) (148) Accounts receivable, net $ 19,854 $ 18,497 The allowance for doubtful accounts is based on the age of receivables and a specific identification of receivables considered at risk of collection. |
Inventory
Inventory | 9 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 8. Inventory The components of inventory consisted of the following: As of (in thousands) June 30, 2020 September 30, 2019 Raw materials $ 12,616 $ 11,510 Work in-process 8,390 8,176 Finished goods 3,404 4,365 Inventory balance at end of period $ 24,410 $ 24,051 |
Property, Plant, and Equipment,
Property, Plant, and Equipment, net | 9 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment, net | NOTE 9. Property, Plant, and Equipment, net The components of property, plant, and equipment, net consisted of the following: As of (in thousands) June 30, 2020 September 30, 2019 Land $ — $ 3,484 Building — 9,405 Equipment 34,577 42,308 Furniture and fixtures 1,125 1,109 Computer hardware and software 3,460 3,554 Leasehold improvements 3,061 2,676 Construction in progress 10,058 9,330 Property, plant, and equipment, gross $ 52,281 $ 71,866 Accumulated depreciation (31,071) (34,643) Property, plant, and equipment, net $ 21,210 $ 37,223 During the three and nine months ended June 30, 2020, the Company sold certain equipment and recognized a gain on sale of assets of approximately $0.3 million and $1.9 million, respectively. In addition, the Company entered into agreements to sell additional equipment and these assets have been reclassified to assets held for sale. On February 10, 2020, SDI completed a sale and leaseback transaction with Eagle Rock Holdings LP (“Buyer”) of non-residential real estate (the “Sale and Leaseback Transaction”). Under the terms of the applicable purchase agreement, SDI sold its property located in Concord, California (the “Concord Real Property”) to Buyer for a total purchase price of $13.2 million. The Company received net proceeds of $12.8 million after reducing for transaction commissions and expenses incurred in connection with the sale. The Company recorded a gain on the sale of assets of approximately $0.3 million in the nine months ended June 30, 2020 related to this transaction. At the consummation of the Sale and Leaseback Transaction, SDI entered into a Single-Tenant Triple Net Lease (the “Lease Agreement”) with Buyer pursuant to which SDI leased back from Buyer the Concord Real Property for a term commencing on the consummation of the Sale and Leaseback Transaction and ending fifteen 15 As a result of the Lease Agreement, the Company recorded net operating lease ROU assets and operating lease liabilities |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Jun. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | NOTE 10. Accrued Expenses and Other Current Liabilities The components of accrued expenses and other current liabilities consisted of the following: As of (in thousands) June 30, 2020 September 30, 2019 Compensation $ 6,136 $ 5,185 Warranty 644 654 Legal expenses and other professional fees 230 4,407 Contract liabilities 1,011 541 Income and other taxes 1,176 1,135 Severance and restructuring accruals 62 172 Other 1,529 2,427 Accrued expenses and other current liabilities $ 10,788 $ 14,521 |
Credit Facilities
Credit Facilities | 9 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Credit Facilities | NOTE 11. Credit Facilities and Debt Credit Facilities On November 11, 2010, we entered into a Credit and Security Agreement (as amended to date, 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. The Credit Facility matures in November 2021 and 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 purposes subject to a requirement, for certain specific uses, that the Company have liquidity of at least $25.0 million after such use. The Credit Facility requires us to maintain (a) liquidity of at least $10.0 million and (b) excess availability of at least $1.0 million. As of June 30, 2020, there was no Debt On May 3, 2020, the Company entered into a Paycheck Protection Program Promissory Note and Agreement (the “PPP Loan Agreement”) with Wells Fargo Bank, N.A. under the Paycheck Protection Program (“PPP”) established under the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) to receive loan proceeds of approximately $6.5 million (the “PPP Loan”), which the Company received on May 6, 2020. The PPP Loan matures on May 3, 2022 and bears interest at a fixed rate of 1.00% per annum, payable monthly. Monthly payments in the amount of $273,160 will be due and payable beginning in November 2020 (subject to further deferral pursuant to the terms of the Paycheck Protection Flexibility Act of 2020) and continuing each month thereafter until maturity of the PPP Loan. There is no prepayment penalty. Under the terms of the PPP, all or a portion of the principal may be forgiven if the PPP Loan proceeds are used for qualifying expenses as described in the CARES Act, such as payroll costs, benefits, rent, and utilities. No assurance is provided that the Company will obtain forgiveness of the PPP Loan in whole or in part. With respect to any portion of the PPP Loan that is not forgiven, the PPP Loan will be subject to customary provisions for a loan of this type, including customary events of default relating to, among other things, payment defaults and breaches of the provisions of the PPP Loan Agreement. |
Income and Other Taxes
Income and Other Taxes | 9 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income and Other Taxes | NOTE 12. Income and Other Taxes During each of the three months ended June 30, 2020 and 2019, the Company recorded income tax expense of approximately $14,000. Income tax expense for the three months ended June 30, 2020 and 2019 is composed primarily of state minimum tax expense. For the nine months ended June 30, 2020 and 2019, the Company recorded income tax benefit (expense) of approximately $27,000 and $(44,000), respectively. Income tax benefit for the nine months ended June 30, 2020 is composed primarily of the reversal of a deferred tax liability related to the Concord Real Property partially offset by state minimum tax expense. Income tax expense for the nine months ended June 30, 2019 is primarily comprised of state minimum tax expense. For the three months ended June 30, 2020 and 2019, the effective tax rate on continuing operations was 0.0% and 0.1%, respectively. The lower tax rate for the three months ended June 30, 2020 is primarily due to higher revenue in the three months ended June 30, 2020. For the nine months ended June 30, 2020 and 2019, the effective tax rate on continuing operations was 0.0% and 0.1%, respectively. The lower tax rate for the nine months ended June 30, 2020 is primarily due to the federal income tax benefit associated with the sale of the Concord Real Property. 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 June 30, 2020 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 June 30, 2020. On a quarterly basis, the Company evaluates the positive and negative evidence to assess whether the more likely than not criteria has been satisfied in determining whether there will be further adjustments to the valuation allowance. During the three and nine months ended June 30, 2020 and 2019, there were no material increases or decreases in unrecognized tax benefits. As of June 30, 2020 and September 30, 2019, we had approximately $0.5 million of interest and penalties accrued as tax liabilities on our balance sheet. We do not believe that it is reasonably possible that any of the uncertain tax positions will be paid or settled within the next 12 months. Interest that is accrued on tax liabilities is recorded within interest expense on the condensed consolidated statements of operations. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 13. Commitments and Contingencies 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. We enter into indemnification agreements with each of our directors and executive officers pursuant to which we agree to indemnify them for certain potential expenses and liabilities arising from their status as a director or executive officer of the Company. We maintain director and officer insurance, which may cover certain liabilities arising from our obligation to indemnify our directors and executive officers in certain circumstances. It is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Legal Proceedings 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 (“Phoenix”) Legal Proceedings On June 12, 2018, 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. On June 21, 2019, an interim award (the “Interim Award”) was issued in connection with all claims in the AAA proceeding other than the claims related to correction of inventorship and declaratory relief relating to U.S. Patent No. 8,773,665 (the “Patent Claims”). While Phoenix ultimately sought $21.2 million in total damages, plus attorneys’ fees and costs, in the Interim Award, the arbitrator found in the Interim Award that (i) Phoenix's claim for breach of the covenant of good faith and fair dealing was denied; (ii) Phoenix's claim for breach of the agreements entered with EMCORE for failure to provide funding for non-recurring engineering was denied; (iii) Phoenix's claim for unjust enrichment was denied; (iv) Phoenix's claim for conversion was granted, but damages for that claim duplicate the damages on the breach of contract and misappropriation of trade secret claims described below and no incremental damages were awarded based on the granting of this claim; (v) EMCORE's request for a declaration that, as between EMCORE and Phoenix, EMCORE owns its proprietary IOC and transceiver was granted. The arbitrator also found in the Interim Award that (i) EMCORE breached certain license agreements entered into with Phoenix by failing to make royalty payments due and failing to provide required accountings; (ii) Phoenix and its members are no longer subject to prior exclusivity restrictions; (iii) EMCORE's claim for breach of the covenant of good faith and fair dealing was denied; and (iv) the proceedings for the Patent Claims and EMCORE's counterclaim with respect thereto would be established by a future proceeding. Further, out of the original 97 trade secret subpart claims by Phoenix, the arbitrator found in the Interim Award that EMCORE had misappropriated a total of five trade secret subparts (the “Deemed Trade Secrets”) and found that at least one Deemed Trade Secret was being used in seven EMCORE products (the “EMCORE Products”). The arbitrator found that as a result of the foregoing, royalties of 7.5% of the sale price are owed, to the extent not previously paid, on (i) sales through July 16, 2018 on all fiber optic gyroscopes sold by EMCORE, and (ii) sales from July 16, 2018 through May 31, 2019 of the EMCORE Products, whether standalone or incorporated into a larger product, in each case together with interest at the New York statutory rate of 9% simple interest. In addition, the arbitrator found in the Interim Award that Phoenix was the prevailing party, and Phoenix was awarded attorneys' fees and costs in the amount of approximately $3.7 million, which amount was reduced 10% from Phoenix’s attorneys’ fees request. In the Interim Award, the arbitrator further determined that EMCORE shall pay Phoenix a royalty of 7.5% of the sale price on (i) future customer payments for certain EMCORE product contracts previously entered into and (ii) customer payments for future sales of any product using any Deemed Trade Secret, in each case payable in a single lump sum within one month of completion of the calendar quarter in which payment has been received from the customer, and shall concurrently submit to Phoenix a written report that sets forth the calculation of the amount of the royalty payment in a form similar to previous royalty reports, provided that following the first $1 million of royalty payments on the EMP-1 product only, inclusive of payments made to date, EMCORE will pay to Phoenix a royalty of 2.25% of the sale price (net of any warranty work, returns, rebates, discounts or credits). EMCORE is required to continue to make royalty payments in this manner until such time as it has in good faith determined, and can so document, that it has completely ceased use of the Deemed Trade Secrets, and at such time, EMCORE shall provide Phoenix written notice of same by certified letter, return receipt requested. On October 1, 2019, the arbitrator issued a Modified Partial Final Award, which incorporated by reference the terms of the Interim Award and ordered and awarded, among other items, (i) an award to Phoenix of attorneys’ fees and costs in the amount of approximately $3.8 million, (ii) an award to Phoenix of $1.0 million in damages owing for unpaid royalties through June 30, 2019, of which $0.6 million remained to be paid as of the issuance of the Modified Partial Final Award, (iii) an award to Phoenix of $0.1 million in pre-judgment interest, calculated at the New York statutory rate of 9% simple interest, and (iv) an order that EMCORE make the payments in the foregoing items (i), (ii) and (iii) on or before October 14, 2019. On October 10, 2019, EMCORE made the foregoing payments to Phoenix in an aggregate amount equal to approximately $4.5 million. This amount was accrued as of September 30, 2019. The Patent Claims were not determined in the Interim Award or the Modified Partial Final Award. In December 2019, EMCORE and Phoenix entered into a settlement agreement with respect to the Patent Claims pursuant to which EMCORE (i) granted Phoenix a fully paid, perpetual nonexclusive license to the disputed patent and (ii) agreed to pay Phoenix a total of On June 21, 2018, Phoenix commenced a special proceeding against EMCORE in the New York Supreme Court, Commercial Division (the “Special Proceeding”). 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. The application resulted in a so-ordered stipulated injunction between EMCORE and Phoenix, which was entered in August 2018. In January 2020, the court granted a motion to confirm the Modified Partial Final Award, vacated the so-ordered stipulated injunction entered in August 2018, and disposed of the Special Proceeding. |
Equity
Equity | 9 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Equity | NOTE 14. Equity Equity Plans We provide long-term incentives to eligible officers, directors, and employees in the form of equity-based awards. We maintain four equity incentive compensation plans, collectively described below as our “Equity Plans”: ● the 2000 Stock Option Plan, ● the 2010 Equity Incentive Plan (“2010 Plan”), ● the 2012 Equity Incentive Plan (“2012 Plan”), and ● the 2019 Equity Incentive Plan (“2019 Plan”). We issue new shares of common stock to satisfy awards issued under our Equity Plans. Stock-based compensation The effect of recording stock-based compensation expense was as follows: For the three months For the nine months Stock-based Compensation Expense - by award type ended June 30, ended June 30, (in thousands) 2020 2019 2020 2019 Employee stock options $ 4 $ 6 $ 13 $ 20 Restricted stock units and awards 403 380 1,331 1,162 Performance stock units and awards 255 188 910 357 Employee stock purchase plan 52 50 145 132 Outside director equity awards and fees in common stock 65 53 226 152 Total stock-based compensation expense $ 779 $ 677 $ 2,625 $ 1,823 For the three months For the nine months Stock-based Compensation Expense - by expense type ended June 30, ended June 30, (in thousands) 2020 2019 2020 2019 Cost of revenue $ 166 $ 121 $ 504 $ 341 Selling, general, and administrative 488 367 1,564 999 Research and development 125 189 557 483 Total stock-based compensation expense $ 779 $ 677 $ 2,625 $ 1,823 401(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. During each of the three months ended June 30, 2020 and 2019, our matching contribution in cash was approximately $0.2 million. Our matching contribution in cash for the nine months ended June 30, 2020 and 2019 was approximately $0.7 million and $0.4 million, respectively. Loss Per Share The following table sets forth the computation of basic and diluted net loss per share: For the three months For the nine months Basic and Diluted Net Loss Per Share ended June 30, ended June 30, (in thousands, except per share) 2020 2019 2020 2019 Numerator: Loss from continuing operations $ (1,287) $ (10,477) $ (7,703) $ (21,009) Undistributed earnings allocated to common shareholders for basic and diluted net income per share (1,287) (10,477) (7,703) (21,009) Denominator: Denominator for basic and fully diluted net loss per share - weighted average shares outstanding 29,295 28,005 29,052 27,730 Net loss per basic and fully diluted share $ (0.04) $ (0.37) $ (0.27) $ (0.76) Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation 1,410 1,317 1,316 881 For diluted loss per share, the denominator includes all outstanding common shares. The anti-dilutive stock options and unvested stock were excluded from the computation of diluted net loss per share for the three and nine months ended June 30, 2020 and 2019 due to the Company incurring a net loss for the periods. Employee Stock Purchase Plan We maintain an Employee Stock Purchase Plan (“ESPP”) which 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 June 30, 2020, we had common stock reserved for the following future issuances: Number of Common Stock Shares Available for Future Issuances Future Issuances Exercise of outstanding stock options 44,976 Unvested restricted stock units and awards 1,630,273 Unvested performance stock units and awards (at 200% maximum payout) 1,752,000 Purchases under the employee stock purchase plan 428,349 Issuance of stock-based awards under the Equity Plans 850,861 Purchases under the officer and director share purchase plan 88,741 Total reserved 4,795,200 |
Segment Data and Related Inform
Segment Data and Related Information | 9 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Data and Related Information | NOTE 15. Segment Data and Related Information The reportable segments reported below are the Company’s segments for which separate financial information is available and upon which operating results are evaluated by the chief operating decision maker to assess performance and to allocate resources. As a result of organizational changes effective in the beginning of fiscal year 2020, the Company has reassessed its reportable segments and determined that it has two reportable segments, (i) Aerospace and Defense and (ii) Broadband. All prior-period amounts have been adjusted retrospectively to reflect our reportable segment changes. The Company’s Chief Executive Officer is the chief operating decision maker and he assesses the performance of the operating segments and allocates resources based on segment profits. The Aerospace and Defense segment is comprised of two product lines: (i) Navigation and Inertial Sensing; and (ii) Defense Optoelectronics. The Broadband segment is comprised of three product lines: (i) CATV Lasers and Transmitters; (ii) Chip Devices; and (iii) Other. Information on reportable segments utilized by our chief operating decision maker is as follows: For the three months For the nine months (in thousands) ended June 30, ended June 30, 2020 2019 2020 2019 Revenue: Aerospace and Defense $ 14,025 $ 8,118 $ 40,742 $ 19,131 Broadband 13,241 9,101 35,856 43,834 Total revenue $ 27,266 $ 17,219 $ 76,598 $ 62,965 Segment Profit: Aerospace and Defense gross profit $ 4,877 $ 2,587 $ 12,209 $ 6,489 Aerospace & Defense R&D expense 3,925 2,559 11,867 5,792 Aerospace and Defense segment profit $ 952 $ 28 $ 342 $ 697 Broadband gross profit $ 4,341 $ 1,117 $ 10,910 $ 8,832 Broadband R&D expense 882 2,070 2,166 7,216 Broadband segment profit (loss) $ 3,459 $ (953) $ 8,744 $ 1,616 Total consolidated segment profit (loss) $ 4,411 $ (925) $ 9,086 $ 2,313 Unallocated (income) expense: Selling, general and administrative 5,936 9,288 18,962 23,877 Gain on sale of assets (312) - (2,229) - Gain from change in estimate on ARO obligation - - - (40) Interest expense (income), net 40 (99) 54 (590) Foreign exchange loss 20 349 29 31 Total unallocated expense 5,684 9,538 16,816 23,278 Loss before income tax expense $ (1,273) $ (10,463) $ (7,730) $ (20,965) Revenue : For the three months For the nine months Revenue by Geographic Region ended June 30, ended June 30, (in thousands) 2020 2019 2020 2019 United States and Canada $ 23,209 $ 14,208 $ 63,291 $ 48,432 Asia 2,041 1,684 5,999 9,936 Europe 1,075 1,315 4,480 4,362 Other 941 12 2,828 235 Total revenue $ 27,266 $ 17,219 $ 76,598 $ 62,965 Significant Customers Significant portions of the Company’s sales are concentrated among a limited number of customers. The duration, severity and future impact of the COVID-19 pandemic are highly uncertain and could result in significant disruptions to the business operations of the Company’s customers. If one or more of these significant customers significantly decrease their orders for the Company’s products, the Company’s business could be materially and adversely affected. Long-lived Assets |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Leases | The Company determines if an arrangement is a lease at its inception. ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate in determining the present value of lease payments considering the term of the lease, which is derived from information available at the lease commencement date. The lease term includes renewal options when it is reasonably certain that the option will be exercised, and excludes termination options. To the extent that the Company’s agreements have variable lease payments, the Company includes variable lease payments that depend on an index or a rate and excludes those that depend on facts or circumstances occurring after the commencement date, other than the passage of time. Lease expense for these leases is recognized on a straight-line basis over the lease term. The Company has elected not to recognize ROU assets and lease liabilities that arise from short-term (12 months or less) leases for any class of underlying asset. Operating leases are included in operating lease ROU assets, current operating lease liabilities, and non-current operating lease liabilities in the Company's condensed consolidated balance sheet. The Company’s lease arrangements consist primarily of corporate, manufacturing and other facility agreements as well as various office equipment agreements. The leases expire at various dates through 2035, some of which include options to extend the lease term. The options with the longest potential total lease term consist of options for extension of up to five years following expiration of the original lease term. During the three and nine months ended June 30, 2020, the Company recorded $0.6 million and $1.3 million of operating lease expense, respectively. During the three and nine months ended June 30, 2019, the Company recorded $0.3 million and $1.0 million of rent expense, respectively. The Company's finance leases and short-term leases are immaterial. Supplemental cash information and non-cash activities related to operating leases are as follows (in thousands): Nine Months Ended June 30, 2020 Operating cash outflows from operating leases $ 1,111 Operating lease assets obtained in exchange for new lease liabilities $ 10,791 Maturities of operating lease liabilities as of June 30, 2020 were as follows (in thousands): Amount 2020 $ 1,788 2021 1,830 2022 1,849 2023 1,730 2024 1,719 Thereafter 12,802 Total lease payments 21,718 Less imputed interest (6,717) Total $ 15,001 The following is a schedule of future minimum operating lease payments as of September 30, 2019 (in thousands): Amount 2020 $ 988 2021 839 2022 824 2023 853 2024 655 Thereafter 1,350 Total lease payments $ 5,509 Weighted-average remaining lease term and discount rate related to operating leases are as follows: June 30, 2020 Weighted average remaining lease term (years) 14.7 Weighted average discount rate 6.1 % |
Disaggregation of Revenue | Disaggregation of Revenue - Note 15 - Geographical Information Revenue is also classified by major product category and is presented below: For the three months ended June 30, For the nine months ended June 30, % of % of % of % of (in thousands) 2020 Revenue 2019 Revenue 2020 Revenue 2019 Revenue Navigation and Inertial Sensing $ 9,861 36 % 5,604 32 % $ 28,970 38 % 12,157 19 % Defense Optoelectronics 4,164 16 % 2,514 15 % 11,772 15 % 6,974 11 % CATV Lasers and Transmitters 10,905 40 % 6,849 40 % 29,070 38 % 32,383 52 % Chip Devices 1,443 5 % 1,854 11 % 4,033 5 % 9,570 15 % Other 893 3 % 398 2 % 2,753 4 % 1,881 3 % Total revenue $ 27,266 100 % $ 17,219 100 % $ 76,598 100 % $ 62,965 100 % |
Fair Value Accounting | ASC Topic 820 (“ASC 820”), Fair Value Measurements, inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: ● Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. ● Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly, through market corroboration, for substantially the full term of the financial instrument. ● Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets or liabilities at fair value. Classification of an asset or liability within this hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. |
Cash and Cash Equivalents, Unrestricted Cash and Cash Equivalents | Cash consists primarily of bank deposits or highly liquid short-term investments with a maturity of three months or less at the time of purchase. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents | Restricted cash represents temporarily restricted deposits held as compensating balances against short-term borrowing arrangements. |
Legal Costs | Professional legal fees are expensed when incurred. We accrue for contingent losses when such losses are probable and reasonably estimable. |
Segment Reporting | The reportable segments reported below are the Company’s segments for which separate financial information is available and upon which operating results are evaluated by the chief operating decision maker to assess performance and to allocate resources. As a result of organizational changes effective in the beginning of fiscal year 2020, the Company has reassessed its reportable segments and determined that it has two reportable segments, (i) Aerospace and Defense and (ii) Broadband. All prior-period amounts have been adjusted retrospectively to reflect our reportable segment changes. The Company’s Chief Executive Officer is the chief operating decision maker and he assesses the performance of the operating segments and allocates resources based on segment profits. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Adoption ASC 842 | As Reported Balance September 30, 2019 Increase October 1, 2019 ( in thousands Operating lease right-of-use assets $ - $ 4,800 $ 4,800 Total assets 109,562 4,800 114,362 Operating lease liabilities - 800 800 Total current liabilities 30,719 800 31,519 Operating lease liabilities non-current - 4,000 4,000 Total liabilities 32,816 4,800 37,616 Total liabilities and equity 109,562 4,800 114,362 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of supplemental cash flow information | Supplemental cash information and non-cash activities related to operating leases are as follows (in thousands): Nine Months Ended June 30, 2020 Operating cash outflows from operating leases $ 1,111 Operating lease assets obtained in exchange for new lease liabilities $ 10,791 |
Schedule of maturities of operating lease liabilities | Amount 2020 $ 1,788 2021 1,830 2022 1,849 2023 1,730 2024 1,719 Thereafter 12,802 Total lease payments 21,718 Less imputed interest (6,717) Total $ 15,001 |
schedule of future minimum lease payments | Amount 2020 $ 988 2021 839 2022 824 2023 853 2024 655 Thereafter 1,350 Total lease payments $ 5,509 |
Schedule of weighted-average remaining lease term and discount rate | June 30, 2020 Weighted average remaining lease term (years) 14.7 Weighted average discount rate 6.1 % |
Revenue by Major Product Category | For the three months ended June 30, For the nine months ended June 30, % of % of % of % of (in thousands) 2020 Revenue 2019 Revenue 2020 Revenue 2019 Revenue Navigation and Inertial Sensing $ 9,861 36 % 5,604 32 % $ 28,970 38 % 12,157 19 % Defense Optoelectronics 4,164 16 % 2,514 15 % 11,772 15 % 6,974 11 % CATV Lasers and Transmitters 10,905 40 % 6,849 40 % 29,070 38 % 32,383 52 % Chip Devices 1,443 5 % 1,854 11 % 4,033 5 % 9,570 15 % Other 893 3 % 398 2 % 2,753 4 % 1,881 3 % Total revenue $ 27,266 100 % $ 17,219 100 % $ 76,598 100 % $ 62,965 100 % |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | Weighted Average Useful (in thousands) Amount Life (years) Purchase price $ 24,978 Developed technology 250 7 Cash acquired 541 Inventories 8,522 Accounts receivable 4,291 Other assets 355 Land and building 12,890 Equipment 2,913 Net liabilities assumed (4,853) Goodwill $ 69 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | As of As of As of June 30, September 30, June 30, (in thousands) 2020 2019 2019 Cash $ 10,435 $ 4,338 $ 3,368 Cash equivalents 19,062 17,236 17,135 Restricted cash 185 403 158 Total cash, cash equivalents and restricted cash $ 29,682 21,977 20,661 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The components of accounts receivable consisted of the following: As of (in thousands) June 30, 2020 September 30, 2019 Accounts receivable, gross $ 20,157 $ 18,645 Allowance for doubtful accounts (303) (148) Accounts receivable, net $ 19,854 $ 18,497 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventory consisted of the following: As of (in thousands) June 30, 2020 September 30, 2019 Raw materials $ 12,616 $ 11,510 Work in-process 8,390 8,176 Finished goods 3,404 4,365 Inventory balance at end of period $ 24,410 $ 24,051 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, net (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
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) June 30, 2020 September 30, 2019 Land $ — $ 3,484 Building — 9,405 Equipment 34,577 42,308 Furniture and fixtures 1,125 1,109 Computer hardware and software 3,460 3,554 Leasehold improvements 3,061 2,676 Construction in progress 10,058 9,330 Property, plant, and equipment, gross $ 52,281 $ 71,866 Accumulated depreciation (31,071) (34,643) Property, plant, and equipment, net $ 21,210 $ 37,223 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of components of accrued expenses and other current liabilities | As of (in thousands) June 30, 2020 September 30, 2019 Compensation $ 6,136 $ 5,185 Warranty 644 654 Legal expenses and other professional fees 230 4,407 Contract liabilities 1,011 541 Income and other taxes 1,176 1,135 Severance and restructuring accruals 62 172 Other 1,529 2,427 Accrued expenses and other current liabilities $ 10,788 $ 14,521 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Stock-based Compensation Expense - By Award Type | The effect of recording stock-based compensation expense was as follows: For the three months For the nine months Stock-based Compensation Expense - by award type ended June 30, ended June 30, (in thousands) 2020 2019 2020 2019 Employee stock options $ 4 $ 6 $ 13 $ 20 Restricted stock units and awards 403 380 1,331 1,162 Performance stock units and awards 255 188 910 357 Employee stock purchase plan 52 50 145 132 Outside director equity awards and fees in common stock 65 53 226 152 Total stock-based compensation expense $ 779 $ 677 $ 2,625 $ 1,823 |
Schedule of Stock-based Compensation Expense - By Expense Type | For the three months For the nine months Stock-based Compensation Expense - by expense type ended June 30, ended June 30, (in thousands) 2020 2019 2020 2019 Cost of revenue $ 166 $ 121 $ 504 $ 341 Selling, general, and administrative 488 367 1,564 999 Research and development 125 189 557 483 Total stock-based compensation expense $ 779 $ 677 $ 2,625 $ 1,823 |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per share: For the three months For the nine months Basic and Diluted Net Loss Per Share ended June 30, ended June 30, (in thousands, except per share) 2020 2019 2020 2019 Numerator: Loss from continuing operations $ (1,287) $ (10,477) $ (7,703) $ (21,009) Undistributed earnings allocated to common shareholders for basic and diluted net income per share (1,287) (10,477) (7,703) (21,009) Denominator: Denominator for basic and fully diluted net loss per share - weighted average shares outstanding 29,295 28,005 29,052 27,730 Net loss per basic and fully diluted share $ (0.04) $ (0.37) $ (0.27) $ (0.76) Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation 1,410 1,317 1,316 881 |
Schedule of Common Stock Reserved for Future Issuances | As of June 30, 2020, we had common stock reserved for the following future issuances: Number of Common Stock Shares Available for Future Issuances Future Issuances Exercise of outstanding stock options 44,976 Unvested restricted stock units and awards 1,630,273 Unvested performance stock units and awards (at 200% maximum payout) 1,752,000 Purchases under the employee stock purchase plan 428,349 Issuance of stock-based awards under the Equity Plans 850,861 Purchases under the officer and director share purchase plan 88,741 Total reserved 4,795,200 |
Segment Data and Related Info_2
Segment Data and Related Information (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment | For the three months For the nine months (in thousands) ended June 30, ended June 30, 2020 2019 2020 2019 Revenue: Aerospace and Defense $ 14,025 $ 8,118 $ 40,742 $ 19,131 Broadband 13,241 9,101 35,856 43,834 Total revenue $ 27,266 $ 17,219 $ 76,598 $ 62,965 Segment Profit: Aerospace and Defense gross profit $ 4,877 $ 2,587 $ 12,209 $ 6,489 Aerospace & Defense R&D expense 3,925 2,559 11,867 5,792 Aerospace and Defense segment profit $ 952 $ 28 $ 342 $ 697 Broadband gross profit $ 4,341 $ 1,117 $ 10,910 $ 8,832 Broadband R&D expense 882 2,070 2,166 7,216 Broadband segment profit (loss) $ 3,459 $ (953) $ 8,744 $ 1,616 Total consolidated segment profit (loss) $ 4,411 $ (925) $ 9,086 $ 2,313 Unallocated (income) expense: Selling, general and administrative 5,936 9,288 18,962 23,877 Gain on sale of assets (312) - (2,229) - Gain from change in estimate on ARO obligation - - - (40) Interest expense (income), net 40 (99) 54 (590) Foreign exchange loss 20 349 29 31 Total unallocated expense 5,684 9,538 16,816 23,278 Loss before income tax expense $ (1,273) $ (10,463) $ (7,730) $ (20,965) |
Schedule of Revenue by Geographic Region | For the three months For the nine months Revenue by Geographic Region ended June 30, ended June 30, (in thousands) 2020 2019 2020 2019 United States and Canada $ 23,209 $ 14,208 $ 63,291 $ 48,432 Asia 2,041 1,684 5,999 9,936 Europe 1,075 1,315 4,480 4,362 Other 941 12 2,828 235 Total revenue $ 27,266 $ 17,219 $ 76,598 $ 62,965 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Oct. 01, 2019 | Sep. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net operating lease right-of-use assets | $ 14,886 | $ 4,800 | $ 0 |
Operating lease liabilities | 15,001 | ||
Additional operating lease right use of assets | 10,800 | ||
Additional operating right use of liabilities | $ 10,800 | ||
Restatement | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net operating lease right-of-use assets | 4,800 | ||
ASU 2016-02 | Restatement | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net operating lease right-of-use assets | 4,800 | ||
Operating lease liabilities | $ 4,800 |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements - Adoption of ASC 842 (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Oct. 01, 2019 | Sep. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 14,886 | $ 4,800 | $ 0 |
Total assets | 119,638 | 114,362 | 109,562 |
Operating lease liabilities | 1,020 | 800 | 0 |
Total current liabilities | 27,341 | 31,519 | 30,719 |
Operating lease liabilities - non-current | 13,981 | 4,000 | 0 |
Total liabilities | 47,366 | 37,616 | 32,816 |
Total liabilities and equity | $ 119,638 | 114,362 | 109,562 |
Restatement | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | 4,800 | ||
Total assets | 4,800 | ||
Operating lease liabilities | 800 | ||
Total current liabilities | 800 | ||
Operating lease liabilities - non-current | 4,000 | ||
Total liabilities | 4,800 | ||
Total liabilities and equity | $ 4,800 | ||
Previously Reported | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total assets | 109,562 | ||
Total current liabilities | 30,719 | ||
Total liabilities | 32,816 | ||
Total liabilities and equity | $ 109,562 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Supplemental cash information (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2020USD ($) | |
Accounting Policies [Abstract] | |
Operating cash outflows from operating leases | $ 1,111 |
Operating lease assets obtained in exchange for new lease liabilities | $ 10,791 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Lease descriptions | |||
Option to extend the lease term | true | ||
Option to terminate the lease | false | ||
Lease option length in years | 5 years | 5 years | |
Lease cost | |||
Operating and variable lease expenses | $ 600 | $ 1,300 | |
Rent expense | 300 | $ 1,000 | |
Maturities of operating lease liabilities | |||
2020 | 1,788 | 1,788 | |
2021 | 1,830 | 1,830 | |
2022 | 1,849 | 1,849 | |
2023 | 1,730 | 1,730 | |
2024 | 1,719 | 1,719 | |
Thereafter | 12,802 | 12,802 | |
Total lease payments | 21,718 | 21,718 | |
Less imputed interest | (6,717) | (6,717) | |
Lease liability | 15,001 | 15,001 | |
Schedule of future minimum lease payments | |||
2020 | 988 | 988 | |
2021 | 839 | 839 | |
2022 | 824 | 824 | |
2023 | 853 | 853 | |
2024 | 655 | 655 | |
Thereafter | 1,350 | 1,350 | |
Total lease payments | $ 5,509 | $ 5,509 | |
Weighted average remaining lease term (years) | 14 years 8 months 12 days | 14 years 8 months 12 days | |
Weighted average discount rate | 6.10% | 6.10% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Revenue by Product) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 27,266 | $ 17,219 | $ 76,598 | $ 62,965 |
Concentration risk percentage | 100.00% | 100.00% | ||
Navigation And Inertial Sensing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 9,861 | $ 5,604 | 28,970 | 12,157 |
Concentration risk percentage | 36.00% | 32.00% | ||
Defense Optoelectronics [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 4,164 | $ 2,514 | 11,772 | 6,974 |
Concentration risk percentage | 16.00% | 15.00% | ||
CA TV Lasers And Transmitters [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 10,905 | $ 6,849 | 29,070 | 32,383 |
Concentration risk percentage | 40.00% | 40.00% | ||
Chips [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,443 | $ 1,854 | 4,033 | 9,570 |
Concentration risk percentage | 5.00% | 11.00% | ||
Other Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 893 | $ 398 | $ 2,753 | $ 1,881 |
Concentration risk percentage | 3.00% | 2.00% | ||
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 | Navigation And Inertial Sensing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage | 38.00% | 19.00% | ||
Product Concentration Risk | Revenue from Contract with Customer | Defense Optoelectronics [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage | 15.00% | 11.00% | ||
Product Concentration Risk | Revenue from Contract with Customer | CA TV Lasers And Transmitters [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage | 38.00% | 52.00% | ||
Product Concentration Risk | Revenue from Contract with Customer | Chips [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage | 5.00% | 15.00% | ||
Product Concentration Risk | Revenue from Contract with Customer | Other Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage | 4.00% | 3.00% |
Acquisition (Details)
Acquisition (Details) - USD ($) shares in Thousands, $ in Thousands | Jun. 07, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Business Acquisition [Line Items] | |||||
Net revenue from acquisition date | $ 2,000 | $ 2,000 | |||
Net income (loss) from acquisition date | $ (5,000) | $ (5,000) | |||
Systron Donner Inertial, Inc. | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | $ 25,000 | ||||
Payments to acquire business | $ 22,000 | ||||
Net revenue from acquisition date | $ 7,700 | $ 22,100 | |||
Net income (loss) from acquisition date | $ 1,100 | $ (300) | |||
Common Stock | Systron Donner Inertial, Inc. | |||||
Business Acquisition [Line Items] | |||||
Common stock issues (shares) | 811,000 | ||||
Common stock issued | $ 3,000 |
Acquisition - Assets Acquired a
Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Sep. 30, 2019 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 69 | $ 69 |
Systron Donner Inertial, Inc. | ||
Business Acquisition [Line Items] | ||
Purchase price | 24,978 | |
Cash acquired | 541 | |
Inventories | 8,522 | |
Accounts receivable | 4,291 | |
Other assets | 355 | |
Net liabilities assumed | (4,853) | |
Goodwill | 69 | |
Developed technology | Systron Donner Inertial, Inc. | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 250 | |
Intangible assets useful life (years) | 7 years | |
Land and building | Systron Donner Inertial, Inc. | ||
Business Acquisition [Line Items] | ||
Property, plant and equipment | $ 12,890 | |
Property and equipment | Systron Donner Inertial, Inc. | ||
Business Acquisition [Line Items] | ||
Property, plant and equipment | $ 2,913 |
Acquisition - Pro Forma Informa
Acquisition - Pro Forma Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Business Combinations [Abstract] | ||||
Revenue | $ 27,266 | $ 21,976 | $ 76,598 | $ 84,911 |
Net loss | $ (1,287) | $ (14,024) | $ (7,703) | $ (27,069) |
Net loss per basic share (USD per share) | $ (0.27) | $ (0.98) | ||
Net loss per diluted share (USD per share) | $ (0.04) | $ (0.50) | ||
Weighted-average number of basic shares outstanding (shares) | 29,052 | 27,730 | ||
Weighted-average number of diluted shares outstanding (shares) | 29,295 | 28,005 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 |
Cash and Cash Equivalents [Abstract] | |||
Cash | $ 10,435 | $ 4,338 | $ 3,368 |
Cash equivalents | 19,062 | 17,236 | 17,135 |
Restricted cash | 185 | 403 | 158 |
Total cash, cash equivalents and restricted cash | $ 29,682 | $ 21,977 | $ 20,661 |
Accounts Receivable (Schedule o
Accounts Receivable (Schedule of Components of Accounts Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Receivables [Abstract] | ||
Accounts receivable, gross | $ 20,157 | $ 18,645 |
Allowance for doubtful accounts | (303) | (148) |
Accounts receivable, net | $ 19,854 | $ 18,497 |
Inventory (Schedule of Componen
Inventory (Schedule of Components of Inventory) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 12,616 | $ 11,510 |
Work in-process | 8,390 | 8,176 |
Finished goods | 3,404 | 4,365 |
Inventory balance at end of period | $ 24,410 | $ 24,051 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, net (Schedule of Property, Plant, and Equipment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 52,281 | $ 52,281 | $ 71,866 |
Accumulated depreciation | (31,071) | (31,071) | (34,643) |
Property, plant, and equipment, net | 21,210 | 21,210 | 37,223 |
Gain on sale of equipment | 300 | 1,900 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 3,484 | ||
Building | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 9,405 | ||
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 34,577 | 34,577 | 42,308 |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 1,125 | 1,125 | 1,109 |
Computer hardware and software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 3,460 | 3,460 | 3,554 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 3,061 | 3,061 | 2,676 |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 10,058 | $ 10,058 | $ 9,330 |
Property plant and equipment -
Property plant and equipment - Narrative (Details) | Feb. 20, 2020USD ($) | Jun. 30, 2020USD ($)$ / ft² |
Property, Plant and Equipment [Abstract] | ||
Sale Lease back Transaction Price | $ 13,200,000 | |
Proceeds from sale of leasebacks | $ 12,800,000 | |
Sale and Leaseback Transaction, Gain (Loss), Net | $ 300,000 | |
Sale And Lease Back Transaction, Lease Term | 15 years | |
Sale Leaseback Transaction, Base Monthly Rent Per Unit | $ / ft² | 0.75 | |
Sale Leaseback Transaction, Base Monthly Rent | $ 77,500 | |
Sale Leaseback Transaction, Percentage Of Increase On Lease Rent | 3.00% | |
Additional operating lease right use of assets | $ 10,800,000 | |
Additional Operating Lease, Liability | $ 10,800,000 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Schedule of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Payables and Accruals [Abstract] | ||
Compensation | $ 6,136 | $ 5,185 |
Warranty | 644 | 654 |
Legal expenses and other professional fees | 230 | 4,407 |
Contract liabilities | 1,011 | 541 |
Income and other taxes | 1,176 | 1,135 |
Severance and restructuring accruals | 62 | 172 |
Other | 1,529 | 2,427 |
Accrued expenses and other current liabilities | $ 10,788 | $ 14,521 |
Credit Facilities (Narrative) (
Credit Facilities (Narrative) (Details) $ in Thousands | May 06, 2020USD ($) | Jun. 30, 2020USD ($)LetterOfCredit | Jun. 30, 2019USD ($) |
Line of Credit Facility [Line Items] | |||
Proceeds From Pay Check Program | $ 6,488 | $ 0 | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Long-term line of credit | 0 | ||
Standby letters of credit, total amount outstanding | 500 | ||
Remaining borrowing capacity | $ 3,500 | ||
Revolving Credit Facility | LIBOR Rate Loan | |||
Line of Credit Facility [Line Items] | |||
Number of standby letters of credit outstanding | LetterOfCredit | 1 | ||
Revolving Credit Facility | Minimum | |||
Line of Credit Facility [Line Items] | |||
Liquidity requirement, minimum after specific uses | $ 25,000 | ||
Liquidity requirement, minimum | 10,000 | ||
Excess availability requirement, minimum | 1,000 | ||
Revolving Credit Facility | Maximum | Tenth Amendment | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 15,000 | ||
Paycheck Protection Program | |||
Line of Credit Facility [Line Items] | |||
Proceeds From Pay Check Program | $ 6,500 | ||
Fixed Interest Rate | 1.00% | ||
Periodic Payment Due | $ 273,160 |
Income and Other Taxes (Narrati
Income and Other Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Income tax (expense) benefit | $ 14,000 | $ 14,000 | $ (27,000) | $ 44,000 | |
Effective tax rate on continuing operations | 0.00% | 0.10% | 0.00% | 0.10% | |
Interest and penalties accrued as tax liabilities | $ 500,000 | $ 500,000 | $ 500,000 |
Commitments and Contingencies -
Commitments and Contingencies - Phoenix Navigation Components, LLC Legal Proceeding (Details) - Phoenix Navigation Components, LLC Legal Proceedings $ in Millions | Oct. 10, 2019USD ($) | Oct. 01, 2019USD ($) | Jun. 21, 2019USD ($)productclaim | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($) | Jul. 31, 2020USD ($) | Apr. 30, 2020USD ($) | Jan. 31, 2020USD ($) |
Loss Contingencies [Line Items] | ||||||||
Total damages sought | $ 21.2 | |||||||
Number of deemed trade secrets used | claim | 1 | |||||||
Number of products using deemed trade secrets | product | 7 | |||||||
Royalties owed (as percentage of sale price) | 7.50% | |||||||
Amount awarded to other party | $ 0.4 | $ 3.8 | ||||||
Loss contingency accrual | $ 0.1 | $ 0.1 | $ 0.2 | |||||
Reduction of attorneys' fees owed (as a percent) | 10.00% | |||||||
Royalties owed after first $1 million of payments (as a percentage of sale price) | 2.25% | |||||||
Payments for Legal Settlements | $ 4.5 | |||||||
Amount awarded | $ 0.4 | $ 3.8 | ||||||
Loss Contingency Accrual | $ 0.1 | $ 0.1 | $ 0.2 | |||||
Trade Secrets | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of pending claims | claim | 97 | |||||||
Number of claims settled | claim | 5 | |||||||
Royalty | ||||||||
Loss Contingencies [Line Items] | ||||||||
Amount awarded to other party | $ 1 | |||||||
Loss contingency accrual | 0.6 | |||||||
Amount awarded | 1 | |||||||
Loss Contingency Accrual | 0.6 | |||||||
Legal Expense | ||||||||
Loss Contingencies [Line Items] | ||||||||
Amount awarded to other party | $ 3.7 | |||||||
Amount awarded | $ 3.7 | |||||||
Interest | ||||||||
Loss Contingencies [Line Items] | ||||||||
Amount awarded to other party | 0.1 | |||||||
Amount awarded | $ 0.1 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) | Jun. 30, 2020plan |
Equity [Abstract] | |
Number of equity incentive compensation plans maintained by the company | 4 |
Equity (Schedule of Stock-based
Equity (Schedule of Stock-based Compensation Expense - by Award Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 779 | $ 677 | $ 2,625 | $ 1,823 |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 4 | 6 | 13 | 20 |
Restricted stock units and awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 403 | 380 | 1,331 | 1,162 |
Performance stock units and awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 255 | 188 | 910 | 357 |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 52 | 50 | 145 | 132 |
Outside director equity awards and fees in common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 65 | $ 53 | $ 226 | $ 152 |
Equity (Schedule of Stock-bas_2
Equity (Schedule of Stock-based Compensation Expense - by Expense Category) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 779 | $ 677 | $ 2,625 | $ 1,823 |
Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 166 | 121 | 504 | 341 |
Selling, general, and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 488 | 367 | 1,564 | 999 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 125 | $ 189 | $ 557 | $ 483 |
Equity (401k) (Details)
Equity (401k) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Equity [Abstract] | ||||
Matching contribution | $ 0.2 | $ 0.2 | $ 0.7 | $ 0.4 |
Equity (Schedule of Earnings pe
Equity (Schedule of Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator: | ||||
Loss from continuing operations | $ (1,287) | $ (10,477) | $ (7,703) | $ (21,009) |
Undistributed earnings allocated to common shareholders for basic and diluted net income per share | $ (1,287) | $ (10,477) | $ (7,703) | $ (21,009) |
Weighted-average number of basic and diluted shares outstanding (in shares) | 29,295 | 28,005 | 29,052 | 27,730 |
Net loss per basic and diluted share (in dollars per share) | $ (0.04) | $ (0.37) | $ (0.27) | $ (0.76) |
Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation | 1,410 | 1,317 | 1,316 | 881 |
Equity (Employee Stock Purchase
Equity (Employee Stock Purchase Plan) (Details) - Employee stock purchase plan | 9 Months Ended |
Jun. 30, 2020USD ($) | |
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) | Jun. 30, 2020shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise of outstanding stock options (in shares) | 44,976 |
Purchases under the employee stock purchase plan (in shares) | 428,349 |
Issuance of stock-based awards under the Equity Plans (in shares) | 850,861 |
Purchases under the officer and director share purchase plan (in shares) | 88,741 |
Total reserved (in shares) | 4,795,200 |
Restricted stock units and awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested stock units (in shares) | 1,630,273 |
Performance Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested award potential, percentage | 200.00% |
Unvested performance stock units (in shares) | 1,752,000 |
Segment Data and Related Info_3
Segment Data and Related Information (Schedule of Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 27,266 | $ 17,219 | $ 76,598 | $ 62,965 |
Gross profit | 9,218 | 3,704 | 23,119 | 15,321 |
R&D expense | 4,807 | 4,629 | 14,033 | 13,008 |
Operating loss | (1,213) | (10,213) | (7,647) | (21,524) |
Unallocated (income) expense: | ||||
Selling, general, and administrative | 5,936 | 9,288 | 18,962 | 23,877 |
Gain on sale of assets | (312) | (2,229) | 0 | |
Gain from change in estimate on ARO obligation | 0 | (40) | ||
Interest (income) expense, net | 40 | (99) | 54 | (590) |
Foreign exchange gain | 20 | 349 | 29 | 31 |
Total unallocated expense | 5,684 | 9,538 | 16,816 | 23,278 |
Loss before income tax expense | (1,273) | (10,463) | (7,730) | (20,965) |
Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 27,266 | 17,219 | 76,598 | 62,965 |
Operating loss | 4,411 | (925) | 9,086 | 2,313 |
Operating segments | Aerospace And Defense | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 14,025 | 8,118 | 40,742 | 19,131 |
Gross profit | 4,877 | 2,587 | 12,209 | 6,489 |
R&D expense | 3,925 | 2,559 | 11,867 | 5,792 |
Operating loss | 952 | 28 | 342 | 697 |
Operating segments | Broadband | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 13,241 | 9,101 | 35,856 | 43,834 |
Gross profit | 4,341 | 1,117 | 10,910 | 8,832 |
R&D expense | 882 | 2,070 | 2,166 | 7,216 |
Operating loss | $ 3,459 | $ (953) | $ 8,744 | $ 1,616 |
Segment Data and Related Info_4
Segment Data and Related Information (Schedule of Revenue by Geographic Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Segment revenue | $ 27,266 | $ 17,219 | $ 76,598 | $ 62,965 |
United States and Canada | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenue | 23,209 | 14,208 | 63,291 | 48,432 |
Asia | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenue | 2,041 | 1,684 | 5,999 | 9,936 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenue | 1,075 | 1,315 | 4,480 | 4,362 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenue | $ 941 | $ 12 | $ 2,828 | $ 235 |
Segment Data and Related Info_5
Segment Data and Related Information (Narrative) (Details) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020customer | Jun. 30, 2019 | Jun. 30, 2020segment | Jun. 30, 2019 | Sep. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of reporting segments | segment | 2 | ||||
Concentration risk, customers | customer | 3 | ||||
Concentration risk percentage | 100.00% | 100.00% | |||
Percentage of long-lived assets located in the United States | 97.00% | 97.00% | 85.00% | ||
Customer Concentration Risk | Sales Revenue, Segment | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Concentration risk percentage | 58.00% | 52.00% | 55.00% | 57.00% |