Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2020 | Feb. 03, 2021 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 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 | 2015 W. Chestnut Street | |
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 | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 29,782,853 | |
Entity Central Index Key | 0000808326 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --09-30 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 33,426,000 | $ 25,482,000 |
Cost of revenue | 20,854,000 | 18,008,000 |
Gross profit | 12,572,000 | 7,474,000 |
Operating expense: | ||
Selling, general, and administrative | 5,798,000 | 5,887,000 |
Research and development | 4,296,000 | 4,642,000 |
Gain on sale of assets | (29,000) | (1,602,000) |
Total operating expense | 10,065,000 | 8,927,000 |
Operating income (loss) | 2,507,000 | (1,453,000) |
Other income: | ||
Interest expense, net | (49,000) | (15,000) |
Foreign exchange gain | 237,000 | 147,000 |
Total other income | 188,000 | 132,000 |
Income (loss) before income tax expense | 2,695,000 | (1,321,000) |
Income tax expense | (126,000) | (14,000) |
Net income (loss) | 2,569,000 | (1,335,000) |
Foreign exchange translation adjustment | (10,000) | (36,000) |
Comprehensive income (loss) | $ 2,559,000 | $ (1,371,000) |
Per share data: | ||
Net income (loss) per basic share | $ 0.09 | $ (0.05) |
Weighted-average number of basic shares outstanding | 29,503 | 28,832 |
Net income (loss) per diluted share | $ 0.08 | $ (0.05) |
Weighted-average number of diluted shares outstanding | 30,377 | 28,832 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 31,120 | $ 30,390 |
Restricted cash | 38 | 148 |
Accounts receivable, net of allowance of $234 and $227, respectively | 27,276 | 25,324 |
Contract assets | 582 | 1,566 |
Inventory | 27,855 | 25,525 |
Prepaid expenses and other current assets | 4,283 | 5,589 |
Assets held for sale | 1,661 | 1,568 |
Total current assets | 92,815 | 90,110 |
Property, plant, and equipment, net | 20,558 | 21,052 |
Goodwill | 69 | 69 |
Operating lease right-of-use assets | 14,262 | 14,566 |
Other intangible assets, net | 193 | 202 |
Other non-current assets | 229 | 242 |
Total assets | 128,126 | 126,241 |
Current liabilities: | ||
PPP liability - current | 1,093 | |
Accounts payable | 17,158 | 16,484 |
Accrued expenses and other current liabilities | 9,650 | 11,577 |
Operating lease liabilities - current | 979 | 992 |
Total current liabilities | 28,880 | 29,053 |
PPP liability - non-current | 5,395 | 6,488 |
Operating lease liabilities - non-current | 13,481 | 13,735 |
Asset retirement obligations | 2,041 | 2,022 |
Other long-term liabilities | 794 | 794 |
Total liabilities | 50,591 | 52,092 |
Commitments and contingencies (Note 11) | ||
Shareholders' equity: | ||
Common stock, no par value, 50,000 shares authorized; 36,693 shares issued and 29,783 shares outstanding as of December 31, 2020; 36,461 shares issued and 29,551 shares outstanding as of September 30, 2020 | 745,188 | 744,361 |
Treasury stock at cost; 6,910 shares | (47,721) | (47,721) |
Accumulated other comprehensive income | 908 | 918 |
Accumulated deficit | (620,840) | (623,409) |
Total shareholders' equity | 77,535 | 74,149 |
Total liabilities and shareholders' equity | $ 128,126 | $ 126,241 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Accounts receivable: | ||
Allowance for doubtful accounts | $ 234 | $ 227 |
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) | 36,693,000 | 36,461,000 |
Common stock, shares outstanding (in shares) | 29,783,000 | 29,551,000 |
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, 2019 | 28,893 | ||||
Common Stock, Number of Shares [Abstract] | |||||
Stock-based compensation (in shares) | 55 | ||||
Stock option exercises (in shares) | 0 | ||||
Ending balance (in shares) at Dec. 31, 2019 | 28,948 | ||||
Balance, beginning of period at Sep. 30, 2019 | $ 739,926 | $ 950 | $ (616,409) | ||
Common Stock, Number of Shares [Abstract] | |||||
Stock-based compensation | 801 | ||||
Stock option exercises | 0 | ||||
Tax withholding paid on behalf of employees for stock-based awards | (47) | ||||
Translation adjustment | (36) | $ (36) | |||
Net loss | (1,335) | (1,335) | |||
Balance, end of period at Dec. 31, 2019 | $ 740,680 | $ (47,721) | 914 | (617,744) | $ 76,129 |
Beginning balance (in shares) at Sep. 30, 2020 | 29,551 | 29,551 | |||
Common Stock, Number of Shares [Abstract] | |||||
Stock-based compensation (in shares) | 230 | ||||
Stock option exercises (in shares) | 2 | ||||
Ending balance (in shares) at Dec. 31, 2020 | 29,783 | 29,783 | |||
Balance, beginning of period at Sep. 30, 2020 | $ 744,361 | 918 | (623,409) | ||
Common Stock, Number of Shares [Abstract] | |||||
Stock-based compensation | 903 | ||||
Stock option exercises | 7 | ||||
Tax withholding paid on behalf of employees for stock-based awards | (83) | ||||
Translation adjustment | (10) | $ (10) | |||
Net loss | 2,569 | 2,569 | |||
Balance, end of period at Dec. 31, 2020 | $ 745,188 | $ (47,721) | $ 908 | $ (620,840) | $ 77,535 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 2,569 | $ (1,335) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization expense | 1,005 | 1,981 |
Stock-based compensation expense | 903 | 801 |
Provision adjustments related to credit loss | 6 | 111 |
Provision adjustments related to product warranty | 171 | 49 |
Gain on disposal of property, plant and equipment | (29) | (1,602) |
Other | (290) | (259) |
Total non-cash adjustments | 1,766 | 1,081 |
Changes in operating assets and liabilities: | ||
Accounts receivable and contract assets | (970) | (1,450) |
Inventory | (1,998) | (902) |
Other assets | 1,694 | (2,809) |
Accounts payable | 836 | 794 |
Accrued expenses and other current liabilities | (2,371) | (1,358) |
Total change in operating assets and liabilities | (2,809) | (5,725) |
Net cash provided by (used in) operating activities | 1,526 | (5,979) |
Cash flows from investing activities: | ||
Purchase of equipment | (870) | (1,506) |
Proceeds from disposal of property, plant and equipment | 0 | 1,947 |
Net cash (used in) provided by investing activities | (870) | 441 |
Cash flows from financing activities: | ||
Net payments on credit facilities | 0 | (1,038) |
Proceeds from exercise of equity awards | 8 | 0 |
Taxes paid related to net share settlement of equity awards | (83) | (47) |
Net cash used in financing activities | (75) | (1,085) |
Effect of exchange rate changes provided by foreign currency | 39 | 32 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 620 | (6,591) |
Cash, cash equivalents and restricted cash at beginning of period | 30,538 | 21,977 |
Cash, cash equivalents and restricted cash at end of period | 31,158 | 15,386 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid during the period for interest | 15 | 47 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Changes in accounts payable related to purchases of equipment | $ (350) | $ (725) |
Description of Business
Description of Business | 3 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | EMCORE Corporation Notes to our Condensed Consolidated Financial Statements 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 is a leading provider of sensors for navigation in the Aerospace and Defense market as well as a manufacturer of lasers and optical subsystems for use in the cable TV industry. 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 products that enable communications systems and service providers to meet growing demand for increased bandwidth and connectivity. The Mixed-Signal Optics technology at the heart of our broadband communications products is shared with our fiber optic gyros and inertial sensors to provide the aerospace and defense markets with state-of-the-art navigation systems technology. With the acquisition of Systron Donner Inertial, Inc. (“SDI”), a navigation systems provider with a scalable, chip-based platform for higher volume gyro applications utilizing Quartz MEMS technology, in June 2019, EMCORE further expanded its portfolio of gyros and inertial sensors with SDI’s quartz MEMS gyro and accelerometer technology. EMCORE has fully vertically-integrated manufacturing capability through our indium phosphide compound semiconductor wafer fabrication facility at our headquarters in Alhambra, CA, and through our quartz processing and sensor manufacturing facility in Concord, CA. These facilities support EMCORE’s vertically-integrated manufacturing strategy for quartz and fiber optic gyro products, for navigation systems, and for our chip, laser, transmitter, and receiver products for broadband applications. With both analog and digital circuits on multiple chips, or even a single chip, the value of Mixed-Signal device solutions is often substantially greater than traditional digital applications and requires a specialized expertise held by EMCORE which is unique in the optics industry. 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, 2020 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, 2020. Significant Accounting Policies and Estimates 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, 2020. There have been no significant changes to our accounting policies during the three months ended December 31, 2020. 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, 2020. Please refer to Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended September 30, 2020 for a discussion of our critical accounting policies and estimates. Disaggregation of Revenue - Note 13 – Segment Data and Related Information Revenue is also classified by major product category and is presented below: For the three months ended December 31, % of % of (in thousands) 2020 Revenue 2019 Revenue Navigation and Inertial Sensing $ 9,202 28 % $ 10,267 40 % Defense Optoelectronics 4,434 13 % 3,437 13 % CATV Lasers and Transmitters 17,315 52 % 9,383 37 % Chip Devices 743 2 % 1,555 6 % Other 1,732 5 % 840 4 % Total revenue $ 33,426 100 % $ 25,482 100 % |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | NOTE 2. Recent Accounting Pronouncements (a) New Accounting Updates Recently Adopted ● In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 was effective for our fiscal year beginning October 1, 2020. We adopted the new standard on October 1, 2020, and it did not have a material impact on its condensed consolidated financial statements. (b) Recent Accounting Standards or Updates Not Yet Effective ● In December 2019, the FASB issued ASU 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The new standard is effective for annual periods beginning after December 15, 2020, including interim periods within those annual periods. The new standard will be effective for our fiscal year beginning October 1, 2021 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. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 3 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | NOTE 3. 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 December 31, September 30, (in thousands) 2020 2020 Cash $ 12,055 $ 11,325 Cash equivalents 19,065 19,065 Restricted cash 38 148 Total cash, cash equivalents and restricted cash $ 31,158 $ 30,538 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 December 31, 2020 and September 30, 2020. |
Fair Value Accounting
Fair Value Accounting | 3 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Accounting | NOTE 4. Fair Value Accounting Accounting Standards Codification Topic 820 (“ASC 820”), Fair Value Measurement, ● 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. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | NOTE 5. Accounts Receivable The components of accounts receivable consisted of the following: As of (in thousands) December 31, 2020 September 30, 2020 Accounts receivable, gross $ 27,510 $ 25,551 Allowance for credit loss (234) (227) Accounts receivable, net $ 27,276 $ 25,324 The allowance for credit loss is based on the age of receivables and a specific identification of receivables considered at risk of collection. |
Inventory
Inventory | 3 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 6. Inventory The components of inventory consisted of the following: As of (in thousands) December 31, 2020 September 30, 2020 Raw materials $ 14,795 $ 13,354 Work in-process 8,780 8,381 Finished goods 4,280 3,790 Inventory balance at end of period $ 27,855 $ 25,525 |
Property, Plant, and Equipment,
Property, Plant, and Equipment, net | 3 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment, net | NOTE 7. Property, Plant, and Equipment, net The components of property, plant, and equipment, net consisted of the following: As of (in thousands) December 31, 2020 September 30, 2020 Equipment $ 36,074 $ 35,218 Furniture and fixtures 1,125 1,125 Computer hardware and software 3,476 3,473 Leasehold improvements 3,249 3,169 Construction in progress 9,933 10,301 Property, plant, and equipment, gross $ 53,857 $ 53,286 Accumulated depreciation (33,299) (32,234) Property, plant, and equipment, net $ 20,558 $ 21,052 During the three months ended December 31, 2020 and 2019, the Company sold certain equipment and recognized a gain on sale of assets of approximately $29,000 and $1.6 million, respectively. In addition, in the fiscal year ended September 30, 2020, the Company entered into agreements to sell additional equipment and these assets have been reclassified to assets held for sale. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | NOTE 8. Accrued Expenses and Other Current Liabilities The components of accrued expenses and other current liabilities consisted of the following: As of (in thousands) December 31, 2020 September 30, 2020 Compensation $ 5,140 $ 6,916 Warranty 921 803 Legal expenses and other professional fees 210 211 Contract liabilities 77 502 Income and other taxes 1,411 1,265 Severance and restructuring accruals — 17 Other 1,891 1,863 Accrued expenses and other current liabilities $ 9,650 $ 11,577 |
Credit Facilities and Debt
Credit Facilities and Debt | 3 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Credit Facilities and Debt | NOTE 9. 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 has 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 December 31, 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 at such time as is in accordance with 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. The Company expects to apply for forgiveness of the PPP Loan during the fiscal year ending September 30, 2021, but it can make no assurance that forgiveness will be granted in part or in whole. As of December 31, 2020, $1.1 million is recorded in current liabilities and $5.4 million is recorded in long-term liabilities on the Company’s condensed consolidated balance sheet. |
Income and Other Taxes
Income and Other Taxes | 3 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income and Other Taxes | NOTE 10. Income and Other Taxes During each of the three months ended December 31, 2020 and 2019, the Company recorded income tax expense of approximately $126,000 and $14,000, respectively. Income tax expense for the three months ended December 31, 2020 and 2019 is composed primarily of state tax expense. The increase in income tax expense is due to increased revenues and the State of California’s temporary suspension of NOL utilization. For the three months ended December 31, 2020 and 2019, the effective tax rate on continuing operations was 0.4% and 0.0%, respectively. The increased tax rate for the three months ended December 31, 2020 is primarily due to increased revenue in the three months ended December 31, 2020 and the State of California’s temporary suspension of NOL utilization. The Company uses some estimates to forecast permanent differences between book and tax accounting. We have not provided for income taxes on non-U.S. subsidiaries’ undistributed earnings as of December 31, 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 December 31, 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 months ended December 31, 2020 and 2019, there were no material increases or decreases in unrecognized tax benefits. As of December 31, 2020 and September 30, 2020, we had approximately $0.6 million of interest and penalties accrued as tax liabilities on our balance sheet. We expect that $0.4 million of uncertain tax benefit will be settled within the next 12 months, which will impact the effective tax rate. 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 | 3 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11. 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 customer 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 claim. 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) Resilience Threatened Litigation In November 2020, we received a demand letter and draft complaint from counsel to Resilience Capital (“Resilience”) threatening to initiate a lawsuit against us in Delaware Chancery Court in connection with the February 2020 sale of SDI’s real property (the “Concord Property Sale”) located in Concord, California (the “Concord Real Property”) to Eagle Rock Holdings, LP (“Buyer”) and that certain Single-Tenant Triple Net Lease, dated as of February 10, 2020, entered into by and between SDI and the Buyer pursuant to which SDI leased from the Buyer the Concord Real Property for a term. In the demand, Resilience, among other things: (i) claimed that we received non-cash consideration in connection with the Concord Property Sale in the form of below-market rent; and (ii) asserted that litigation would be filed seeking, among other things, damages in an amount to be determined at trial, unless we promptly agreed to proceed with the appraisal process set forth in that certain Purchase and Sale Agreement, dated as of June 7, 2019, by and among the Company, The Resilience Fund IV, L.P., The Resilience Fund IV-A, L.P., Aerospace Newco Holdings, Inc. and Ember Acquisition Sub, Inc. To date no litigation has been filed and the parties have agreed to engage in mediation in an effort to resolve these claims. We believe that the claims made by Resilience are without merit and we intend to vigorously defend ourselves against them. |
Equity
Equity | 3 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Equity | NOTE 12. Equity Equity Plans We provide long-term incentives to eligible officers, directors, and employees in the form of equity-based awards. We maintain three equity incentive compensation plans, collectively described below as our “Equity Plans”: ● the 2010 Equity Incentive Plan, ● the 2012 Equity Incentive Plan, and ● the 2019 Equity Incentive 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 Stock-based Compensation Expense - by award type ended December 31, (in thousands) 2020 2019 Employee stock options $ 1 $ 5 Restricted stock units and awards 431 376 Performance stock units and awards 317 292 Employee stock purchase plan 89 47 Outside director equity awards and fees in common stock 65 81 Total stock-based compensation expense $ 903 $ 801 For the three months Stock-based Compensation Expense - by expense type ended December 31, (in thousands) 2020 2019 Cost of revenue $ 141 $ 136 Selling, general, and administrative 559 485 Research and development 203 180 Total stock-based compensation expense $ 903 $ 801 401(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 December 31, 2020 and 2019, our matching contribution in cash was approximately $0.3 and $0.2 million, respectively. Income (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share: For the three months Basic and Diluted Net Income (Loss) Per Share ended December 31, (in thousands, except per share) 2020 2019 Numerator: Income (Loss) from continuing operations $ 2,569 $ (1,335) Undistributed earnings allocated to common shareholders for basic and diluted net income (loss) per share 2,569 (1,335) Denominator: Denominator for basic net income (loss) per share - weighted average shares outstanding 29,503 28,832 Denominator for fully diluted net (income) loss per share - weighted average shares outstanding 30,377 28,832 Net income (loss) per basic share $ 0.09 $ (0.05) Net income (loss) per fully diluted share $ 0.08 $ (0.05) Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation 874 1,168 Basic earnings per share is computed by dividing net income (loss) for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income (loss) for the period by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding restricted stock units and awards, performance stock units, stock options, and shares issuable under the employee stock purchase plan as applicable pursuant to the treasury stock method. The anti-dilutive stock options and shares of outstanding and unvested restricted stock were excluded from the computation of net loss per share for the three months ended December 31, 2020 due to the Company incurring a net loss for the period. 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 December 31, 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 38,407 Unvested restricted stock units and awards 1,734,697 Unvested performance stock units and awards (at 200% maximum payout) 1,472,000 Purchases under the employee stock purchase plan 312,474 Issuance of stock-based awards under the Equity Plans 637,303 Purchases under the officer and director share purchase plan 88,741 Total reserved 4,283,622 |
Segment Data and Related Inform
Segment Data and Related Information | 3 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Data and Related Information | NOTE 13. 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. The Company has determined that it has two reportable segments, (i) Aerospace and Defense and (ii) Broadband. 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: (a) Navigation and Inertial Sensing; and (b) Defense Optoelectronics. The Broadband segment is comprised of three product lines: (a) CATV Lasers and Transmitters; (b) Chip Devices; and (c) Other. Information on reportable segments utilized by our chief operating decision maker is as follows: For the three months (in thousands) ended December 31, 2020 2019 Revenue: Aerospace and Defense $ 13,636 $ 13,704 Broadband 19,790 11,778 Total revenue $ 33,426 $ 25,482 Segment Profit: Aerospace and Defense gross profit $ 4,100 $ 4,488 Aerospace & Defense R&D expense 3,686 3,951 Aerospace and Defense segment profit $ 414 $ 537 Broadband gross profit $ 8,472 $ 2,987 Broadband R&D expense 610 692 Broadband segment profit $ 7,862 $ 2,295 Total consolidated segment profit $ 8,276 $ 2,832 Unallocated expense: Selling, general and administrative 5,798 5,887 Gain on sale of assets (29) (1,602) Interest expense, net 49 15 Foreign exchange gain (237) (147) Total unallocated expense 5,581 4,153 Income (loss) before income tax expense $ 2,695 $ (1,321) Revenue : For the three months Revenue by Geographic Region ended December 31, (in thousands) 2020 2019 United States and Canada $ 29,346 $ 20,195 Asia 3,025 2,266 Europe 656 1,889 Other 399 1,132 Total revenue $ 33,426 $ 25,482 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 decreases their orders for the Company’s products, the Company’s business could be materially and adversely affected. Long-lived Assets |
Description of Business (Accoun
Description of Business (Accounting Policies) (Policies) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Interim Financial Statements | 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, 2020 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, 2020. | |
Significant Accounting Policies and Estimates | Significant Accounting Policies and Estimates 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, 2020. There have been no significant changes to our accounting policies during the three months ended December 31, 2020. 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, 2020. Please refer to Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended September 30, 2020 for a discussion of our critical accounting policies and estimates. | |
New Accounting Updates Recently Adopted and Recent Accounting Standards or Updates Not Yet Effective | (a) New Accounting Updates Recently Adopted | |
Cash and Cash Equivalents | Cash consists primarily of bank deposits or highly liquid short-term investments with a maturity of three months or less at the time of purchase. | |
Restricted Cash | Restricted cash represents temporarily restricted deposits held as compensating balances against short-term borrowing arrangements. | |
Fair Value of Financial Instruments | Accounting Standards Codification Topic 820 (“ASC 820”), Fair Value Measurement, ● Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. ● Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly, through market corroboration, for substantially the full term of the financial instrument. ● Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets or liabilities at fair value. Classification of an asset or liability within this hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. | |
Revenue Recognition and Disaggregation of Revenue | Disaggregation of Revenue - Note 13 – Segment Data and Related Information Revenue is also classified by major product category and is presented below: | |
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. The Company has determined that it has two reportable segments, (i) Aerospace and Defense and (ii) Broadband. 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. |
Description of Business (Tables
Description of Business (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disaggregation of Revenue [Table Text Block] | For the three months ended December 31, % of % of (in thousands) 2020 Revenue 2019 Revenue Navigation and Inertial Sensing $ 9,202 28 % $ 10,267 40 % Defense Optoelectronics 4,434 13 % 3,437 13 % CATV Lasers and Transmitters 17,315 52 % 9,383 37 % Chip Devices 743 2 % 1,555 6 % Other 1,732 5 % 840 4 % Total revenue $ 33,426 100 % $ 25,482 100 % |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | As of As of December 31, September 30, (in thousands) 2020 2020 Cash $ 12,055 $ 11,325 Cash equivalents 19,065 19,065 Restricted cash 38 148 Total cash, cash equivalents and restricted cash $ 31,158 $ 30,538 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The components of accounts receivable consisted of the following: As of (in thousands) December 31, 2020 September 30, 2020 Accounts receivable, gross $ 27,510 $ 25,551 Allowance for credit loss (234) (227) Accounts receivable, net $ 27,276 $ 25,324 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventory consisted of the following: As of (in thousands) December 31, 2020 September 30, 2020 Raw materials $ 14,795 $ 13,354 Work in-process 8,780 8,381 Finished goods 4,280 3,790 Inventory balance at end of period $ 27,855 $ 25,525 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, net (Tables) | 3 Months Ended |
Dec. 31, 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) December 31, 2020 September 30, 2020 Equipment $ 36,074 $ 35,218 Furniture and fixtures 1,125 1,125 Computer hardware and software 3,476 3,473 Leasehold improvements 3,249 3,169 Construction in progress 9,933 10,301 Property, plant, and equipment, gross $ 53,857 $ 53,286 Accumulated depreciation (33,299) (32,234) Property, plant, and equipment, net $ 20,558 $ 21,052 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of components of accrued expenses and other current liabilities | As of (in thousands) December 31, 2020 September 30, 2020 Compensation $ 5,140 $ 6,916 Warranty 921 803 Legal expenses and other professional fees 210 211 Contract liabilities 77 502 Income and other taxes 1,411 1,265 Severance and restructuring accruals — 17 Other 1,891 1,863 Accrued expenses and other current liabilities $ 9,650 $ 11,577 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Dec. 31, 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 Stock-based Compensation Expense - by award type ended December 31, (in thousands) 2020 2019 Employee stock options $ 1 $ 5 Restricted stock units and awards 431 376 Performance stock units and awards 317 292 Employee stock purchase plan 89 47 Outside director equity awards and fees in common stock 65 81 Total stock-based compensation expense $ 903 $ 801 |
Schedule of Stock-based Compensation Expense - By Expense Type | For the three months Stock-based Compensation Expense - by expense type ended December 31, (in thousands) 2020 2019 Cost of revenue $ 141 $ 136 Selling, general, and administrative 559 485 Research and development 203 180 Total stock-based compensation expense $ 903 $ 801 |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net income (loss) per share: For the three months Basic and Diluted Net Income (Loss) Per Share ended December 31, (in thousands, except per share) 2020 2019 Numerator: Income (Loss) from continuing operations $ 2,569 $ (1,335) Undistributed earnings allocated to common shareholders for basic and diluted net income (loss) per share 2,569 (1,335) Denominator: Denominator for basic net income (loss) per share - weighted average shares outstanding 29,503 28,832 Denominator for fully diluted net (income) loss per share - weighted average shares outstanding 30,377 28,832 Net income (loss) per basic share $ 0.09 $ (0.05) Net income (loss) per fully diluted share $ 0.08 $ (0.05) Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation 874 1,168 |
Schedule of Common Stock Reserved for Future Issuances | As of December 31, 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 38,407 Unvested restricted stock units and awards 1,734,697 Unvested performance stock units and awards (at 200% maximum payout) 1,472,000 Purchases under the employee stock purchase plan 312,474 Issuance of stock-based awards under the Equity Plans 637,303 Purchases under the officer and director share purchase plan 88,741 Total reserved 4,283,622 |
Segment Data and Related Info_2
Segment Data and Related Information (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment | For the three months (in thousands) ended December 31, 2020 2019 Revenue: Aerospace and Defense $ 13,636 $ 13,704 Broadband 19,790 11,778 Total revenue $ 33,426 $ 25,482 Segment Profit: Aerospace and Defense gross profit $ 4,100 $ 4,488 Aerospace & Defense R&D expense 3,686 3,951 Aerospace and Defense segment profit $ 414 $ 537 Broadband gross profit $ 8,472 $ 2,987 Broadband R&D expense 610 692 Broadband segment profit $ 7,862 $ 2,295 Total consolidated segment profit $ 8,276 $ 2,832 Unallocated expense: Selling, general and administrative 5,798 5,887 Gain on sale of assets (29) (1,602) Interest expense, net 49 15 Foreign exchange gain (237) (147) Total unallocated expense 5,581 4,153 Income (loss) before income tax expense $ 2,695 $ (1,321) |
Schedule of Revenue by Geographic Region | For the three months Revenue by Geographic Region ended December 31, (in thousands) 2020 2019 United States and Canada $ 29,346 $ 20,195 Asia 3,025 2,266 Europe 656 1,889 Other 399 1,132 Total revenue $ 33,426 $ 25,482 |
Description of Business (Revenu
Description of Business (Revenue by Product) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 33,426 | $ 25,482 |
Concentration risk percentage | 100.00% | 100.00% |
Navigation And Inertial Sensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 9,202 | $ 10,267 |
Concentration risk percentage | 28.00% | 40.00% |
Defense Optoelectronics | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 4,434 | $ 3,437 |
Concentration risk percentage | 13.00% | 13.00% |
CA TV Lasers And Transmitters | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 17,315 | $ 9,383 |
Concentration risk percentage | 52.00% | 37.00% |
Chip Devices | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 743 | $ 1,555 |
Concentration risk percentage | 2.00% | 6.00% |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,732 | $ 840 |
Concentration risk percentage | 5.00% | 4.00% |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Cash and Cash Equivalents [Abstract] | ||
Cash | $ 12,055 | $ 11,325 |
Cash equivalents | 19,065 | 19,065 |
Restricted cash | 38 | 148 |
Total cash, cash equivalents and restricted cash | $ 31,158 | $ 30,538 |
Accounts Receivable (Schedule o
Accounts Receivable (Schedule of Components of Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Receivables [Abstract] | ||
Accounts receivable, gross | $ 27,510 | $ 25,551 |
Allowance for doubtful accounts | (234) | (227) |
Accounts receivable, net | $ 27,276 | $ 25,324 |
Inventory (Schedule of Componen
Inventory (Schedule of Components of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 14,795 | $ 13,354 |
Work in-process | 8,780 | 8,381 |
Finished goods | 4,280 | 3,790 |
Inventory balance at end of period | $ 27,855 | $ 25,525 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, net (Schedule of Property, Plant, and Equipment) (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 53,857,000 | $ 53,286,000 | |
Accumulated depreciation | (33,299,000) | (32,234,000) | |
Property, plant, and equipment, net | 20,558,000 | 21,052,000 | |
Gain on sale of equipment | 29,000 | $ 1,600,000 | |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 36,074,000 | 35,218,000 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 1,125,000 | 1,125,000 | |
Computer hardware and software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 3,476,000 | 3,473,000 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 3,249,000 | 3,169,000 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 9,933,000 | $ 10,301,000 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Schedule of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Payables and Accruals [Abstract] | ||
Compensation | $ 5,140 | $ 6,916 |
Warranty | 921 | 803 |
Legal expenses and other professional fees | 210 | 211 |
Contract liabilities | 77 | 502 |
Income and other taxes | 1,411 | 1,265 |
Severance and restructuring accruals | 17 | |
Other | 1,891 | 1,863 |
Accrued expenses and other current liabilities | $ 9,650 | $ 11,577 |
Credit Facilities and Debt (Nar
Credit Facilities and Debt (Narrative) (Details) $ in Thousands | May 06, 2020USD ($) | Dec. 31, 2021USD ($)LetterOfCredit | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) |
Line of Credit Facility [Line Items] | ||||
Paycheck Protection Program Liability, Current | $ 1,093 | |||
Paycheck Protection Program Liability, Noncurrent | 5,395 | $ 6,488 | ||
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 | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax (expense) benefit | $ 126,000 | $ 14,000 | |
Effective tax rate on continuing operations | 0.40% | 0.00% | |
Interest and penalties accrued as tax liabilities | $ 600,000 | $ 600,000 | |
Uncertain tax benefit | $ 400,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Nov. 30, 2020 |
Resilience Threatened Litigation [Member] | Concord Property [Member] | |
Loss Contingencies [Line Items] | |
Lease length in years | 15 years |
Equity (Schedule of Stock-based
Equity (Schedule of Stock-based Compensation Expense - by Award Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 903 | $ 801 |
Employee stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 1 | 5 |
Restricted stock units and awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 431 | 376 |
Performance stock units and awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 317 | 292 |
Employee stock purchase plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 89 | 47 |
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 | $ 81 |
Equity (Schedule of Stock-bas_2
Equity (Schedule of Stock-based Compensation Expense - by Expense Category) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 903 | $ 801 |
Cost of revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 141 | 136 |
Selling, general, and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 559 | 485 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 203 | $ 180 |
Equity (401k) (Details)
Equity (401k) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||
Matching contribution | $ 0.3 | $ 0.2 |
Equity (Schedule of Earnings pe
Equity (Schedule of Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | ||
Income (Loss) from continuing operations | $ 2,569 | $ (1,335) |
Undistributed earnings allocated to common shareholders for basic and diluted net income (loss) per share | $ 2,569 | $ (1,335) |
Denominator for basic net income (loss) per share - weighted average shares outstanding | 29,503 | 28,832 |
Denominator for fully diluted net (income) loss per share - weighted average shares outstanding | 30,377 | 28,832 |
Net income (loss) per basic share | $ 0.09 | $ (0.05) |
Net income (loss) per diluted share | $ 0.08 | $ (0.05) |
Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation | 874 | 1,168 |
Equity (Employee Stock Purchase
Equity (Employee Stock Purchase Plan) (Details) - Employee stock purchase plan | 3 Months Ended |
Dec. 31, 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) | Dec. 31, 2020shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise of outstanding stock options (in shares) | 38,407 |
Purchases under the employee stock purchase plan (in shares) | 312,474 |
Issuance of stock-based awards under the Equity Plans (in shares) | 637,303 |
Purchases under the officer and director share purchase plan (in shares) | 88,741 |
Total reserved (in shares) | 4,283,622 |
Restricted stock units and awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested stock units (in shares) | 1,734,697 |
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) | 1,472,000 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) | Dec. 31, 2020plan |
Equity [Abstract] | |
Number of equity incentive compensation plans maintained by the company | 3 |
Segment Data and Related Info_3
Segment Data and Related Information (Schedule of Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 33,426 | $ 25,482 |
Gross profit | 12,572 | 7,474 |
R&D expense | 4,296 | 4,642 |
Operating income (loss) | 2,507 | (1,453) |
Unallocated (income) expense: | ||
Selling, general, and administrative | 5,798 | 5,887 |
Gain on sale of assets | (29) | (1,602) |
Interest expense, net | 49 | 15 |
Foreign exchange gain | (237) | (147) |
Total unallocated expense | 5,581 | 4,153 |
Income (loss) before income tax expense | 2,695 | (1,321) |
Operating segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 33,426 | 25,482 |
Operating income (loss) | 8,276 | 2,832 |
Operating segments | Aerospace And Defense | ||
Segment Reporting Information [Line Items] | ||
Revenue | 13,636 | 13,704 |
Gross profit | 4,100 | 4,488 |
R&D expense | 3,686 | 3,951 |
Operating income (loss) | 414 | 537 |
Operating segments | Broadband | ||
Segment Reporting Information [Line Items] | ||
Revenue | 19,790 | 11,778 |
Gross profit | 8,472 | 2,987 |
R&D expense | 610 | 692 |
Operating income (loss) | $ 7,862 | $ 2,295 |
Segment Data and Related Info_4
Segment Data and Related Information (Schedule of Revenue by Geographic Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Segment revenue | $ 33,426 | $ 25,482 |
United States and Canada | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 29,346 | 20,195 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 3,025 | 2,266 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 656 | 1,889 |
Other | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | $ 399 | $ 1,132 |
Segment Data and Related Info_5
Segment Data and Related Information (Narrative) (Details) | 3 Months Ended | ||
Dec. 31, 2020customersegment | Dec. 31, 2019customer | Sep. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of reporting segments | segment | 2 | ||
Concentration risk percentage | 100.00% | 100.00% | |
Percentage of long-lived assets located in the United States | 98.00% | 97.00% | |
Customer Concentration Risk | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Concentration risk, customers | customer | 3 | 3 | |
Customer Concentration Risk | Sales Revenue, Segment | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Concentration risk percentage | 70.00% | 50.00% |