Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Nov. 20, 2013 | Mar. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'DIGI INTERNATIONAL INC. | ' | ' |
Entity Central Index Key | '0000854775 | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 25,746,358 | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $231,361,444 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Net sales | ' | ' | ' |
Hardware product | $173,078 | $180,434 | $193,113 |
Service | 22,303 | 10,124 | 11,047 |
Total revenue | 195,381 | 190,558 | 204,160 |
Cost of sales: | ' | ' | ' |
Cost of hardware product | 82,276 | 84,714 | 92,897 |
Cost of service | 12,982 | 5,507 | 4,675 |
Total cost of sales | 95,258 | 90,221 | 97,572 |
Gross profit | 100,123 | 100,337 | 106,588 |
Operating expenses: | ' | ' | ' |
Sales and marketing | 40,513 | 39,242 | 39,549 |
Research and development | 30,327 | 30,767 | 31,642 |
General and administrative | 21,423 | 18,188 | 18,206 |
Restructuring charges, net | 313 | 1,259 | 154 |
Total operating expenses | 92,576 | 89,456 | 89,551 |
Operating income | 7,547 | 10,881 | 17,037 |
Other income (expense), net: | ' | ' | ' |
Interest income | 210 | 289 | 251 |
Interest expense | -42 | -23 | -86 |
Other income (expense), net | 523 | -250 | -687 |
Total other income (expense), net | 691 | 16 | -522 |
Income before income taxes | 8,238 | 10,897 | 16,515 |
Income tax provision | 2,433 | 3,282 | 5,496 |
Net income | $5,805 | $7,615 | $11,019 |
Net income per common share: | ' | ' | ' |
Basic (USD per share) | $0.22 | $0.30 | $0.44 |
Diluted (USD per share) | $0.22 | $0.29 | $0.43 |
Weighted average common shares: | ' | ' | ' |
Basic (shares) | 25,956 | 25,743 | 25,312 |
Diluted (shares) | 26,237 | 26,146 | 25,819 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income Statement (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||
Net income | $5,805 | $7,615 | $11,019 | |||
Other comprehensive income (loss), net of tax: | ' | ' | ' | |||
Foreign currency translation adjustment | -1,826 | -3,354 | -770 | |||
Change in net unrealized (loss) gain on investments | -63 | 126 | -170 | |||
Less income tax benefit (provision) | 24 | -51 | 66 | |||
Reclassification of realized loss on investments included in net income (1) | 0 | [1] | 15 | [1] | 10 | [1] |
Less income tax benefit (2) | 0 | [2] | -4 | [2] | -4 | [2] |
Other comprehensive loss, net of tax | -1,865 | -3,268 | -868 | |||
Comprehensive income | $3,940 | $4,347 | $10,151 | |||
[1] | Recorded in Other income (expense), net in our Consolidated Statements of Operations. | |||||
[2] | Recorded in Income tax provision in our Consolidated Statements of Operations. |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $41,320 | $60,246 |
Marketable securities | 47,006 | 58,372 |
Accounts receivable, net | 26,829 | 24,634 |
Inventories | 26,140 | 24,435 |
Deferred tax assets | 3,174 | 3,389 |
Other | 4,835 | 2,493 |
Total current assets | 149,304 | 173,569 |
Marketable securities, long-term | 17,389 | 2,016 |
Property, equipment and improvements, net | 13,910 | 15,157 |
Identifiable intangible assets, net | 9,728 | 10,629 |
Goodwill | 103,569 | 86,209 |
Deferred tax assets | 5,832 | 5,010 |
Other | 221 | 494 |
Total assets | 299,953 | 293,084 |
Current liabilities: | ' | ' |
Accounts payable | 8,906 | 6,040 |
Income taxes payable | 0 | 1,269 |
Accrued compensation | 7,410 | 5,744 |
Accrued warranty | 1,063 | 1,021 |
Other | 3,911 | 4,118 |
Total current liabilities | 21,290 | 18,192 |
Income taxes payable | 3,903 | 3,294 |
Deferred tax liabilities | 415 | 630 |
Other noncurrent liabilities | 79 | 111 |
Total liabilities | 25,687 | 22,227 |
Commitments and Contingencies (see Note 15 & 16) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $.01 par value; 2,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $.01 par value; 60,000,000 shares authorized; 30,264,224 and 29,268,788 shares issued | 303 | 293 |
Additional paid-in capital | 211,982 | 199,495 |
Retained earnings | 116,088 | 110,283 |
Accumulated other comprehensive loss | -15,590 | -13,725 |
Treasury stock, at cost, 4,708,965 and 3,356,453 shares | -38,517 | -25,489 |
Total stockholders' equity | 274,266 | 270,857 |
Total liabilities and stockholders' equity | $299,953 | $293,084 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value (USD per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (USD per share) | $0.01 | $0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 30,264,224 | 29,268,788 |
Treasury stock, shares | 4,708,965 | 3,356,453 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Operating activities: | ' | ' | ' |
Net income | $5,805 | $7,615 | $11,019 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation of property, equipment and improvements | 3,461 | 3,339 | 3,006 |
Amortization of identifiable intangible assets | 4,416 | 4,476 | 6,171 |
Stock-based compensation | 3,773 | 3,727 | 3,444 |
Excess tax benefits from stock-based compensation | -67 | -198 | -796 |
Deferred income tax benefit | -2,055 | -2,452 | -1,205 |
Bad debt/product return provision | 811 | 500 | 90 |
Inventory obsolescence | 1,258 | 1,413 | 1,935 |
Intangible impairment charge | 361 | 0 | 0 |
Restructuring charges, net | 313 | 1,259 | 154 |
Other | -85 | 13 | 263 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -2,368 | -343 | -2,756 |
Inventories | -2,972 | -1,958 | 623 |
Other assets | -212 | 168 | -602 |
Income taxes | -2,634 | 2,330 | -432 |
Accounts payable | 1,413 | -1,759 | -1,227 |
Accrued expenses | 530 | -3,003 | 2,152 |
Net cash provided by operating activities | 11,748 | 15,127 | 21,839 |
Investing activities: | ' | ' | ' |
Purchase of marketable securities | -67,159 | -72,669 | -61,506 |
Proceeds from maturities of marketable securities | 63,089 | 65,533 | 44,843 |
Acquisition of businesses, net of cash acquired | -12,919 | 0 | -3,000 |
Proceeds from sale of investment | 136 | 135 | 0 |
Purchase of property, equipment, improvements and certain other intangible assets | -2,886 | -3,953 | -2,736 |
Net cash used in investing activities | -19,739 | -10,954 | -22,399 |
Financing activities: | ' | ' | ' |
Excess tax benefits from stock-based compensation | 67 | 198 | 796 |
Proceeds from stock option plan transactions | 2,193 | 1,072 | 2,853 |
Proceeds from employee stock purchase plan transactions | 1,008 | 1,041 | 990 |
Purchase of common stock | -14,058 | 0 | 0 |
Net cash (used in) provided by financing activities | -10,790 | 2,311 | 4,639 |
Effect of exchange rate changes on cash and cash equivalents | -145 | -922 | -338 |
Net (decrease) increase in cash and cash equivalents | -18,926 | 5,562 | 3,741 |
Cash and cash equivalents, beginning of period | 60,246 | 54,684 | 50,943 |
Cash and cash equivalents, end of period | 41,320 | 60,246 | 54,684 |
Supplemental disclosures of cash flow information: | ' | ' | ' |
Interest paid | 42 | 23 | 86 |
Income taxes paid, net | 6,300 | 3,201 | 7,065 |
Supplemental schedule of non-cash investing activities: | ' | ' | ' |
Accrual for capitalized intangible asset | 42 | 0 | 0 |
Issuance of common stock for business acquisition | $6,741 | $0 | $0 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
In Thousands, except Share data, unless otherwise specified | ||||||
Beginning balance at Sep. 30, 2010 | $240,556 | $287 | ($27,218) | $185,427 | $91,649 | ($9,589) |
Beginning balance (in shares) at Sep. 30, 2010 | ' | 28,666,000 | 3,584,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 11,019 | ' | ' | ' | 11,019 | ' |
Other comprehensive loss | -868 | ' | ' | ' | ' | -868 |
Employee stock purchase issuances (in shares) | ' | ' | -112,000 | ' | ' | ' |
Employee stock purchase issuances | 990 | ' | 852 | 138 | ' | ' |
Issuance of stock upon exercise of stock options (in shares) | ' | 435,000 | ' | ' | ' | ' |
Issuance of stock upon exercise of stock options | 2,853 | 4 | ' | 2,849 | ' | ' |
Tax benefit realized upon exercise of stock options | 2,722 | ' | ' | 2,722 | ' | ' |
Stock-based compensation expense | 3,444 | ' | ' | 3,444 | ' | ' |
Ending balance at Sep. 30, 2011 | 260,716 | 291 | -26,366 | 194,580 | 102,668 | -10,457 |
Ending balance (in shares) at Sep. 30, 2011 | ' | 29,101,000 | 3,472,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 7,615 | ' | ' | ' | 7,615 | ' |
Other comprehensive loss | -3,268 | ' | ' | ' | ' | -3,268 |
Employee stock purchase issuances (in shares) | ' | ' | -116,000 | ' | ' | ' |
Employee stock purchase issuances | 1,041 | ' | 877 | 164 | ' | ' |
Issuance of stock upon exercise of stock options (in shares) | ' | 168,000 | ' | ' | ' | ' |
Issuance of stock upon exercise of stock options | 1,072 | 2 | ' | 1,070 | ' | ' |
Tax benefit realized upon exercise of stock options | -46 | ' | ' | -46 | ' | ' |
Stock-based compensation expense | 3,727 | ' | ' | 3,727 | ' | ' |
Ending balance at Sep. 30, 2012 | 270,857 | 293 | -25,489 | 199,495 | 110,283 | -13,725 |
Ending balance (in shares) at Sep. 30, 2012 | ' | 29,269,000 | 3,356,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 5,805 | ' | ' | ' | 5,805 | ' |
Other comprehensive loss | -1,865 | ' | ' | ' | ' | -1,865 |
Employee stock purchase issuances (in shares) | ' | ' | -128,000 | ' | ' | ' |
Employee stock purchase issuances | 1,008 | ' | 1,030 | -22 | ' | ' |
Repurchase of common stock (in shares) | ' | ' | 1,481,000 | ' | ' | ' |
Repurchase of common stock | -14,058 | ' | -14,058 | ' | ' | ' |
Issuance of stock upon exercise of stock options (in shares) | ' | 280,000 | ' | ' | ' | ' |
Issuance of stock upon exercise of stock options | 2,193 | 3 | ' | 2,190 | ' | ' |
Tax benefit realized upon exercise of stock options | -188 | ' | ' | -188 | ' | ' |
Acquisition of Etherios, Inc. (in shares) | ' | 715,000 | ' | ' | ' | ' |
Acquisition of Etherios, Inc. | 6,741 | 7 | ' | 6,734 | ' | ' |
Stock-based compensation expense | 3,773 | ' | ' | 3,773 | ' | ' |
Ending balance at Sep. 30, 2013 | $274,266 | $303 | ($38,517) | $211,982 | $116,088 | ($15,590) |
Ending balance (in shares) at Sep. 30, 2013 | ' | 30,264,000 | 4,709,000 | ' | ' | ' |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Business Description | ||||||||||||
We are a leading provider of machine to machine (M2M) networking products and end-to-end solutions that enable the connection, monitoring and control of local or remote physical assets by electronic means. Our products are deployed by a wide range of businesses and institutions. We focus a significant amount of our development, sales and marketing efforts on continuing to develop, manufacture and market a wide range of hardware products that have been the historical backbone of our business since its inception; and expand and enhance our deployment of software applications and cloud-based platform solutions that enable electronic devices to interface with business applications. | ||||||||||||
Principles of Consolidation | ||||||||||||
The consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||||
Changes in Presentation | ||||||||||||
Beginning with this 10-K, we began presenting product and service revenue, as well as cost of product and service revenue, on the face of our income statement. The prior year data for these line items has been recast accordingly. These reclassifications had no effect on reported consolidated net earnings. | ||||||||||||
Cash Equivalents | ||||||||||||
Cash equivalents consist of money market accounts and other highly liquid investments purchased with an original maturity of three months or less. The carrying amounts approximate fair value due to the short maturities of these investments. | ||||||||||||
Marketable Securities | ||||||||||||
Marketable securities consist of certificates of deposit, commercial paper, corporate bonds and government municipal bonds. All marketable securities are accounted for as available-for-sale and are carried at fair value on our consolidated balance sheets with unrealized gains and losses recorded in accumulated other comprehensive loss within stockholders' equity. In order to estimate the fair value for each security in our investment portfolio, we obtain quoted market prices and trading activity for each security where available. We obtain relevant information from our investment advisor and, if warranted, also may review the financial solvency of certain security issuers. | ||||||||||||
We regularly monitor and evaluate the value of our marketable securities. When assessing marketable securities for other-than-temporary declines in value, we consider several factors. These factors include: how significant the decline in value is as a percentage of the original cost, how long the market value of the investment has been less than its original cost, the underlying factors contributing to a decline in the prices of securities in a single asset class, the performance of the issuer's stock price in relation to the stock price of its competitors within the industry, expected market volatility, analyst recommendations, the views of external investment managers, any news or financial information that has been released specific to the investee and the outlook for the overall industry in which the issuer operates. If events and circumstances indicate that a decline in the value of a security has occurred and is other-than-temporary, we would record a charge to other income (expense). | ||||||||||||
Accounts Receivable | ||||||||||||
Accounts receivable are stated at the amount we expect to collect, which is net of an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. The following factors are considered when determining the collectability of specific customer accounts: customer creditworthiness, past transaction history with the customer, and changes in customer payment terms or practices. In addition, overall historical collection experience, current economic industry trends, and a review of the current status of trade accounts receivable are considered when determining the required allowance for doubtful accounts. Based on our assessment, we provide for estimated uncollectible amounts through a charge to earnings and a credit to our allowance for doubtful accounts. Balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and a credit to accounts receivable. | ||||||||||||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) | ||||||||||||
Inventories | ||||||||||||
Inventories are stated at the lower of cost or fair market value, with cost determined using the first-in, first-out method. Appropriate consideration is given to deterioration, obsolescence and other factors in evaluating fair market value. | ||||||||||||
Property, Equipment and Improvements, Net | ||||||||||||
Property, equipment and improvements are carried at cost, net of accumulated depreciation. Depreciation is provided by charges to operations using the straight-line method over the estimated asset useful lives. Furniture and fixtures and other equipment are depreciated over a period of three to seven years. Building improvements and buildings are depreciated over ten and thirty-nine years, respectively. Equipment under capital lease is depreciated over the lesser of the lease term or its depreciable life. | ||||||||||||
Expenditures for maintenance and repairs are charged to operations as incurred, while major renewals and betterments are capitalized. The assets and related accumulated depreciation accounts are adjusted for asset retirements and disposals with the resulting gain or loss included in operations. | ||||||||||||
Identifiable Intangible Assets | ||||||||||||
Purchased proven technology, license agreements, covenants not to compete and other identifiable intangible assets are recorded at fair value when acquired in a business acquisition, or at cost when not purchased in a business acquisition. Purchased in-process research and development costs (IPR&D) related to business combinations are capitalized and amortized once placed in service. All other identifiable intangible assets are amortized on either a straight-line basis over their estimated useful lives of three to thirteen years or based on the pattern in which the asset is consumed. Useful lives for identifiable intangible assets are estimated at the time of acquisition based on the periods of time from which we expect to derive benefits from the identifiable intangible assets. Amortization of purchased and core technology is included in cost of product in the Consolidated Statements of Operations. Amortization of all other acquired identifiable intangible assets is charged to operating expenses as a component of general and administrative expense. | ||||||||||||
Identifiable intangible assets are reviewed for impairment annually or whenever events or circumstances indicate that undiscounted expected future cash flows are not sufficient to recover the carrying value amount. We measure impairment loss by utilizing an undiscounted cash flow valuation technique using fair values indicated by the income approach. Impairment losses, if any, would be recorded in the period the impairment is identified. During the fourth quarter of fiscal 2013, we recorded an impairment charge of $0.4 million included in general and administrative expense on our Consolidated Statements of Operations for our single operating and reporting segment (see Note 3 to our Consolidated Financial Statements). There were no other impairments identified in fiscal 2013 and there were no impairments identified during fiscal years 2012 or 2011. | ||||||||||||
Goodwill | ||||||||||||
Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is tested for impairment on an annual basis as of June 30, or more frequently if events or circumstances occur which could indicate impairment. The calculation of goodwill impairment requires us to make assumptions about the fair value of our one reporting unit, which historically has been approximated by using our market capitalization plus a control premium. Control premium assumptions require judgment and actual results may differ from assumed or estimated amounts. | ||||||||||||
In June 2012 we performed a control premium study to determine the appropriate control premium to include in the calculation of fair value, using a third party valuation firm to assist us in performing the control premium analysis. In order to estimate the range of control premiums appropriate for us, three methodologies were used, including: (1) analysis of individual transactions within our industry; (2) analysis of industry-wide data, and (3) analysis of global transaction data. Individual transactions in the Communication Equipment or Computer & Peripherals industries were used to find transactions of target companies that operated in similar markets and shared similar operating characteristics with Digi. Transaction screening criteria included selection of transactions with the following characteristics: | ||||||||||||
•At least 50 percent of a target company's equity sought by an acquirer, | ||||||||||||
•Target company considered operating (not in bankruptcy), | ||||||||||||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) | ||||||||||||
• | Target company had publicly traded stock outstanding at the transaction date, and | |||||||||||
• | Transactions announced between June 30, 2007 and the valuation date. | |||||||||||
In analyzing industry-wide data, transactions in three industries were identified that encompassed the products offered by us: Office Equipment and Computer Hardware, Communications, and Computer, Supplies and Services. Finally, control premiums were considered for both domestic and international transactions. The control premium analysis resulted in a range of control premium of 30% to 45%. We reviewed the data provided and estimated that a 40% control premium best represented the amount an investor would likely pay, over and above market capitalization, in order to obtain a controlling interest given the economic conditions at that time. We chose 40% as it approximated the midpoint of the range and reflected the overall increase in control premiums over the past several years. Based on our industry knowledge and recent discussions with our third party valuation firm, we concluded that the control premium study that was performed in conjunction with our annual goodwill impairment assessment at June 30, 2012 remained valid and that the 40% control premium used in our prior year's assessment continued to best represent the amount an investor likely would pay, over and above market capitalization, in order to obtain a controlling interest given current economic conditions in both fiscal 2012 and fiscal 2013. | ||||||||||||
At June 30, 2013, our market capitalization was $241.4 million compared to our carrying value of $272.3 million. Our market capitalization plus our estimated control premium of 40% resulted in a fair value in excess of our carrying value by a margin of 24%. As a result, no impairment was indicated and we were not required to complete the second step of the goodwill impairment analysis. No goodwill impairment charges were recorded. At September 30, 2013, our market capitalization was $255.3 million compared to our carrying value of $274.3 million. Since there were no triggering events through September 30, 2013, and our market capitalization plus our estimated control premium of 40% resulted in a fair value in excess of our carrying value by a margin of 30%, no impairment was indicated. | ||||||||||||
As of June 30, 2012, our market capitalization was $264.3 million compared to our carrying value of $265.7 million. Our market capitalization plus our estimated control premium of 40% resulted in a fair value in excess of our carrying value by a margin of 39% and therefore no impairment was indicated. | ||||||||||||
If our stock price or control premium declines, the first step of our goodwill impairment analysis may fail. We have defined the criteria that could result in additional interim goodwill impairment testing. We would perform the second step of the impairment testing if our stock price fell below defined thresholds for a significant period of time, or if our control premium significantly decreased. Events or circumstances may occur that could negatively impact our stock price, including changes in our anticipated revenue and profits and our ability to execute on our strategies. In addition, our control premium could decline due to changes in economic conditions, in the technology industry, in the financial markets or more generally. An impairment could have a material effect on our consolidated balance sheet and results of operations. We have had no goodwill impairment losses since the adoption of Accounting Standards Codification (ASC) 350, Intangibles-Goodwill and Others, in fiscal 2003. | ||||||||||||
Revenue Recognition | ||||||||||||
We recognize revenue in accordance with authoritative guidance issued by FASB related to revenue recognition. | ||||||||||||
Hardware product revenue as a percentage of total revenue was 88.6%, 94.7% and 94.6% in fiscal 2013, 2012 and 2011, respectively. We recognize hardware product revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, collectability is reasonably assured and there are no post-delivery obligations, other than warranty. Under these criteria, product revenue generally is recognized upon shipment of product to customers. Sales to authorized domestic distributors and Direct / OEMs are made with certain rights of return and price adjustment provisions. Estimated reserves for future returns and pricing adjustments are established by us based on an analysis of historical patterns of returns and price adjustments as well as an analysis of authorized returns compared to received returns, current on-hand inventory at distributors, and distribution sales for the current period. Estimated reserves for future returns and price adjustments are charged against revenue in the same period as the corresponding revenue is recorded. | ||||||||||||
Revenue recognized for service revenue as a percentage of total revenue represented 11.4%, 5.3% and 5.4% in fiscal 2013, 2012 and 2011, respectively. Our service revenue is derived primarily from professional and engineering services performed by our Etherios customer relationship management (CRM) and wireless design teams. We also have some service revenue that is derived from our Device Cloud by Etherios, which is a platform-as-a-service (PAAS) offering in which customers pay for services consumed in terms of devices being managed and monitored, or as a monthly service fee for access to information. In addition, we have small amounts of revenue from technical support and training. We recognize service revenue from our | ||||||||||||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) | ||||||||||||
Etherios CRM professional services, wireless design services, and Device Cloud based upon performance, including final product delivery and customer acceptance. In addition, we recognize small amounts of revenue from technical support and training as the services are performed. Such revenue is deferred and recognized over the life of the contract as the service is performed. | ||||||||||||
Research and Development | ||||||||||||
Research and development costs are expensed when incurred. Research and development costs include compensation, allocation of corporate costs, depreciation, utilities, professional services and prototypes. Software development costs are expensed as incurred until the point that technological feasibility and proven marketability of the product are established. To date, the time period between the establishment of technological feasibility and completion of software development has been short, and no significant development costs have been incurred during that period. Accordingly, we have not capitalized any software development costs to date. | ||||||||||||
Income Taxes | ||||||||||||
Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Income tax expense is equal to the tax payable for the period and the change during the period in deferred tax assets and liabilities and also changes in income tax reserves. | ||||||||||||
Net Income Per Common Share | ||||||||||||
Basic net income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares of our stock result from dilutive common stock options and restricted stock units. We use the treasury stock method to calculate the weighted-average shares used in the diluted earnings per share computation. Under the treasury stock method, the proceeds from exercise of an option, the amount of compensation cost, if any, for future service that we have not yet recognized, and the amount of estimated tax benefits that would be recorded in paid-in capital, if any, when the option is exercised are assumed to be used to repurchase shares in the current period. | ||||||||||||
The following table is a reconciliation of the numerators and denominators in the net income per common share calculations (in thousands, except per common share data): | ||||||||||||
Fiscal years ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Numerator: | ||||||||||||
Net income | $ | 5,805 | $ | 7,615 | $ | 11,019 | ||||||
Denominator: | ||||||||||||
Denominator for basic net income per common share — weighted average shares outstanding | 25,956 | 25,743 | 25,312 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options and restricted stock units | 281 | 403 | 507 | |||||||||
Denominator for diluted net income per common share — adjusted weighted average shares | 26,237 | 26,146 | 25,819 | |||||||||
Net income per common share, basic | $ | 0.22 | $ | 0.3 | $ | 0.44 | ||||||
Net income per common share, diluted | $ | 0.22 | $ | 0.29 | $ | 0.43 | ||||||
Because their effect would be anti-dilutive at period end, certain potentially dilutive shares related to stock options to purchase common shares were not included in the above computation of diluted earnings per share because the options' exercise prices were greater than the average market price of our common shares. At September 30, 2013, 2012 and 2011, potentially dilutive shares related to such stock options were 3,939,541, 2,023,213 and 1,831,713, respectively. | ||||||||||||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) | ||||||||||||
Stock-Based Compensation | ||||||||||||
Stock-based compensation expense represents the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. This cost must be recognized over the period during which an employee is required to provide the service (usually the vesting period). | ||||||||||||
Foreign Currency Translation | ||||||||||||
Financial position and results of operations of our international subsidiaries are measured using local currencies as the functional currency, except for our Singapore location which uses the U.S. Dollar as its local currency. Assets and liabilities of these operations are translated at the exchange rates in effect at the end of each reporting period. Statements of operations accounts are translated at the weighted average rates of exchange prevailing during each reporting period. Translation adjustments arising from the use of differing currency exchange rates from period to period are included in accumulated other comprehensive income (loss) in stockholders' equity. Gains and losses on foreign currency exchange transactions, as well as translation gains or losses on transactions denominated in currencies other than an entity's functional currency are reflected in the statement of operations. During fiscal 2013, 2012 and 2011 there were net transaction gains (losses) of $0.4 million, $(0.4) million and $(0.7) million, respectively, that were recorded in other income (expense). We manage our net asset or net liability position for U.S. dollar accounts in our foreign locations to reduce our foreign currency risk. We have not implemented a formal hedging strategy. | ||||||||||||
Use of Estimates and Risks and Uncertainties | ||||||||||||
The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates that could significantly affect our results of operations or financial condition involve the assignment of fair values upon acquisition of goodwill and other intangible assets and testing for impairment; the determination of our allowance for doubtful accounts and reserve for future returns and pricing adjustments; the estimation of our inventory obsolescence, warranty reserve, income tax reserves and other contingencies. | ||||||||||||
Comprehensive Income (Loss) | ||||||||||||
Our comprehensive income (loss) is comprised of net income, foreign currency translation adjustments and unrealized gains and losses on available-for-sale marketable securities, which are charged or credited to the accumulated other comprehensive income (loss) account in stockholders' equity. | ||||||||||||
Recent Accounting Developments | ||||||||||||
Adopted | ||||||||||||
In April 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2013-07, "Presentation of Financial Statements (Topic 205); Liquidation Basis of Accounting." The objective of this guidance is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. The amendments in this standard are effective prospectively for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Early adoption is permitted. We adopted this guidance in the third quarter of fiscal 2013. Since liquidation is not imminent, the adoption did not have an impact on our consolidated financial statements. | ||||||||||||
In February 2013, the FASB issued ASU 2013-02, "Comprehensive Income (Topic 220); Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income." This updated guidance improves the reporting of significant items reclassified out of accumulated other comprehensive income and requires an entity to present, either on the face of the statement where net income is presented or in the notes, separately for each component of comprehensive income, the current period reclassifications out of accumulated other comprehensive income by the respective line items of net income affected by the reclassification. The updated guidance was effective prospectively for reporting periods beginning after December 15, 2012. We adopted this guidance beginning January 1, 2013. Other than requiring additional disclosures that are in the footnotes | ||||||||||||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) | ||||||||||||
to the Statements of Comprehensive Income, the adoption did not have an effect on our consolidated financial statements. | ||||||||||||
In July 2012, the FASB issued ASU 2012-02, "Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment." The FASB amended its guidance on testing of indefinite-lived intangible assets for impairment. Under the amended guidance, companies may perform a qualitative assessment to determine whether further impairment testing is necessary, similar to the amended goodwill impairment testing guidance noted below. The guidance for indefinite-lived intangible assets is effective for annual and interim tests performed for fiscal years beginning after September 15, 2012, with an option for early adoption. We adopted ASU 2012-02 in the first quarter of fiscal 2013. As we do not have any indefinite-lived intangible assets, this pronouncement does not have an effect on our consolidated financial statements. | ||||||||||||
Not Adopted | ||||||||||||
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This guidance requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows: to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU No. 2013-11 is effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2014. We will adopt this guidance beginning with our fiscal quarter ending December 31, 2015. We are evaluating the impact of the adoption of ASU 2013-11 and do not expect it to have a material impact on our consolidated financial statements. | ||||||||||||
In March 2013, the FASB issued ASU 2013-05, "Foreign Currency Matters (Topic 830); Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity." This guidance applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. ASU No. 2013-05 is effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. We will adopt this guidance beginning with our fiscal quarter ending December 31, 2014. We currently are reviewing the provisions of ASU No. 2013-05 but do not expect it to have an effect on our consolidated financial statements as we currently do not intend to sell any foreign entities for which we hold a controlling financial interest. |
Acquisition
Acquisition | 12 Months Ended | |||
Sep. 30, 2013 | ||||
Business Combinations [Abstract] | ' | |||
ACQUISITION | ' | |||
ACQUISITION | ||||
Etherios, Inc. | ||||
On October 31, 2012, we acquired Etherios, Inc. ("Etherios"). The total purchase price of $20.4 million included $13.7 million in cash (excluding cash acquired of $0.8 million) and $6.7 million represented by 715,571 shares of our common stock. The common stock issued was valued at $9.42 per common share. | ||||
Cash in the amount of $2.35 million was deposited to an escrow fund with a third party agent. Of the $2.35 million escrow, $0.3 million related to a holdback amount pending final determination of the unpaid debt and working capital as shown on the closing balance sheet. This holdback amount was paid in February 2013 as there were no changes to the closing balance sheet. An additional $2.05 million is held in escrow for a period not to exceed eighteen months from the date of closing to satisfy possible claims that may arise pursuant to specific representation and warranty sections of the stock purchase agreement. The escrowed amounts have been included in the determination of the purchase consideration on the date of acquisition as management believes that the representation and warranty matters are determinable beyond a reasonable doubt. | ||||
Costs related to the acquisition, which include legal, accounting and valuation fees, in the amount of $0.2 million have been charged directly to operations and are included in general and administrative expense in our Consolidated Statements of Operations for fiscal 2013. | ||||
2. ACQUISITION (CONTINUED) | ||||
The purchase price was allocated to the estimated fair value of assets acquired and liabilities assumed. The purchase price allocation resulted in the recognition of $17.3 million of goodwill. We believe that the acquisition resulted in the recognition of goodwill primarily because Etherios is a salesforce.com Platinum Partner and experienced in end user implementation of the Salesforce Service Cloud. Although we believe the relationship with salesforce.com is important to us, it is not an exclusive relationship and requires Etherios to compete with others for business opportunities. Accordingly, we have determined that this relationship cannot be valued as a separate intangible asset of Etherios and as a result is a component of goodwill. | ||||
As salesforce.com has signaled its intent for the Service Cloud to be used as a means to monitor machines, we also believe that the acquisition of Etherios will likely further enhance our solutions offerings and provide another channel for revenue of our networking products. | ||||
Etherios' operating results are included in our Consolidated Results of Operations from the day following the acquisition on October 31, 2012. The Consolidated Balance Sheet as of September 30, 2013 reflects the allocation of the purchase price to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. | ||||
The Etherios acquisition has been accounted for using the acquisition method of accounting which requires, among other things, that most assets acquired and liabilities assumed pursuant to the stock purchase agreement be recognized at fair value as of the acquisition date. The table below sets forth the final purchase price allocation (in thousands): | ||||
Cash, including cash in escrow | $ | 13,696 | ||
Common stock | 6,741 | |||
Total | $ | 20,437 | ||
Fair value of net tangible assets acquired | $ | 1,142 | ||
Fair value of identifiable intangible assets acquired: | ||||
Existing customer relationships | 1,400 | |||
Non-compete agreements | 1,100 | |||
Trade name | 440 | |||
Order backlog | 360 | |||
Goodwill | 17,282 | |||
Deferred tax liabilities related to identifiable intangibles | (1,287 | ) | ||
Total | $ | 20,437 | ||
The weighted average useful life for all the identifiable intangibles listed above is 5.7 years. For purposes of determining fair value, the existing customer relationships identified above are assumed to have useful lives ranging between six to eight years, non-compete agreements are assumed to have useful lives of five years, the trade name is assumed to have a useful life of seven years, and the order backlog is assumed to have a useful life of one year. Useful lives for identifiable intangible assets are estimated at the time of acquisition based on the periods of time from which we expect to derive benefits from the identifiable intangible assets. The identifiable intangible assets are amortized using the straight-line method which reflects the pattern in which the asset are expected to be consumed. | ||||
We have determined that the Etherios acquisition is not material to our consolidated results of operations or financial position; therefore, pro forma financial information for fiscal 2013 and 2012 is not presented. |
Goodwill_and_other_Identifiabl
Goodwill and other Identifiable Intangible Assets | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET | ' | |||||||||||||||||||||||
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET | ||||||||||||||||||||||||
Identifiable Intangible Assets, Net | ||||||||||||||||||||||||
Amortizable identifiable intangible assets, net as of September 30, 2013 and 2012 are comprised of the following (in thousands): | ||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||
Gross | Accum. | Net | Gross | Accum. | Net | |||||||||||||||||||
carrying | amort. | carrying | amort. | |||||||||||||||||||||
amount | amount | |||||||||||||||||||||||
Purchased and core technology | $ | 45,960 | $ | (44,306 | ) | $ | 1,654 | $ | 46,597 | $ | (43,639 | ) | $ | 2,958 | ||||||||||
License agreements | 2,440 | (2,440 | ) | — | 2,840 | (2,682 | ) | 158 | ||||||||||||||||
Patents and trademarks | 11,322 | (9,000 | ) | 2,322 | 10,943 | (8,469 | ) | 2,474 | ||||||||||||||||
Customer maintenance contracts | — | — | — | 700 | (700 | ) | — | |||||||||||||||||
Customer relationships | 18,954 | (14,130 | ) | 4,824 | 17,504 | (12,465 | ) | 5,039 | ||||||||||||||||
Non-compete agreements | 1,100 | (202 | ) | 898 | 1,045 | (1,045 | ) | — | ||||||||||||||||
Order backlog | 360 | (330 | ) | 30 | — | — | — | |||||||||||||||||
Total | $ | 80,136 | $ | (70,408 | ) | $ | 9,728 | $ | 79,629 | $ | (69,000 | ) | $ | 10,629 | ||||||||||
During the fourth quarter of fiscal 2013, we recorded an impairment charge of $0.4 million in general and administrative expense on our Consolidated Statements of Operations for our single operating and reporting segment. Management determined to end-of-life certain product lines acquired in connection with the MobiApps acquisition due to various factors impacting the viability of these product lines. These products lines utilized certain identifiable intangible technology assets which were part of the assets purchased at the time of acquisition. The impairment charge consisted of $0.2 million for patented satellite technology and $0.1 million relating to an associated license agreement as the net carrying values of these intangible assets are not recoverable and the undiscounted future cash flows do not exceed the net carrying value of the assets. We also wrote off $0.1 million of various patents that were abandoned. | ||||||||||||||||||||||||
Amortization expense for fiscal years 2013, 2012 and 2011 is as follows (in thousands): | ||||||||||||||||||||||||
Fiscal year | Total | |||||||||||||||||||||||
2013 | $ | 4,416 | ||||||||||||||||||||||
2012 | $ | 4,476 | ||||||||||||||||||||||
2011 | $ | 6,171 | ||||||||||||||||||||||
Estimated amortization expense for the next five years is as follows (in thousands): | ||||||||||||||||||||||||
Fiscal year | Total | |||||||||||||||||||||||
2014 | $ | 3,619 | ||||||||||||||||||||||
2015 | $ | 2,724 | ||||||||||||||||||||||
2016 | $ | 1,540 | ||||||||||||||||||||||
2017 | $ | 702 | ||||||||||||||||||||||
2018 | $ | 482 | ||||||||||||||||||||||
The changes in the carrying amount of goodwill were (in thousands): | ||||||||||||||||||||||||
Fiscal years ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Beginning balance, October 1 | $ | 86,209 | $ | 86,012 | ||||||||||||||||||||
Acquisition of Etherios, Inc. | 17,282 | — | ||||||||||||||||||||||
Foreign currency translation adjustment | 78 | 197 | ||||||||||||||||||||||
Ending balance, September 30 | $ | 103,569 | $ | 86,209 | ||||||||||||||||||||
Segment_Information_and_Major_
Segment Information and Major Customers | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
SEGMENT INFORMATION AND MAJOR CUSTOMERS | ' | |||||||||||
SEGMENT INFORMATION AND MAJOR CUSTOMERS | ||||||||||||
We operate under a single operating and reporting segment. Our revenue consists of hardware product revenue and service revenue. Our hardware product offerings are comprised of growth hardware products that include wireless hardware products and ARM-based embedded modules, as well as mature hardware products that include primarily wired hardware products. Our service offerings include wireless product design and development services, CRM consulting services, application development services, licenses to use The Social Machine® application for use on the Force.com platform and our PAAS recurring revenue generated from Device Cloud platform, post-contract customer support and fees associated with technical support and training. | ||||||||||||
The following table presents revenue for our growth and mature categories (in thousands): | ||||||||||||
Fiscal years ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Growth hardware products and all services | $ | 110,741 | $ | 99,257 | $ | 101,565 | ||||||
Mature hardware products | 84,640 | 91,301 | 102,595 | |||||||||
Total revenue | $ | 195,381 | $ | 190,558 | $ | 204,160 | ||||||
The information in the following table provides revenue by the geographic location of the customer for the fiscal years ended September 30, 2013, 2012 and 2011 (in thousands): | ||||||||||||
Fiscal years ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
North America, primarily United States | $ | 116,541 | $ | 112,398 | $ | 118,654 | ||||||
Europe, Middle East & Africa | 48,815 | 47,042 | 52,125 | |||||||||
Asia | 24,507 | 24,844 | 26,939 | |||||||||
Latin America | 5,518 | 6,274 | 6,442 | |||||||||
Total revenue | $ | 195,381 | $ | 190,558 | $ | 204,160 | ||||||
Net property, equipment and improvements by geographic location are as follows (in thousands): | ||||||||||||
Fiscal years ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | $ | 13,321 | $ | 14,233 | $ | 14,169 | ||||||
International, primarily Europe | 589 | 924 | 1,201 | |||||||||
Total net property, equipment and improvements | $ | 13,910 | $ | 15,157 | $ | 15,370 | ||||||
Our U.S. export sales comprised 41.7% , 39.6% and 37.5% of revenue for the fiscal years ended September 30, 2013, 2012 and 2011. | ||||||||||||
No single customer exceeded 10% of revenue for any of the periods presented. We had one customer, a distributor, whose accounts receivable balance comprised 13.8% of total accounts receivable at September 30, 2013. No single customer exceeded 10% of total accounts receivable for any other period presented. |
Selected_Balance_Sheet_Data
Selected Balance Sheet Data | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Selected Balance Sheet Data [Abstract] | ' | |||||||
SELECTED BALANCE SHEET DATA | ' | |||||||
SELECTED BALANCE SHEET DATA | ||||||||
(in thousands) | ||||||||
As of September 30, | ||||||||
2013 | 2012 | |||||||
Accounts receivable, net: | ||||||||
Accounts receivable | $ | 27,142 | $ | 24,929 | ||||
Less allowance for doubtful accounts | 313 | 295 | ||||||
Total accounts receivable, net | $ | 26,829 | $ | 24,634 | ||||
Inventories: | ||||||||
Raw materials | $ | 21,171 | $ | 18,159 | ||||
Work in process | 224 | 428 | ||||||
Finished goods | 4,745 | 5,848 | ||||||
Total inventories | $ | 26,140 | $ | 24,435 | ||||
Property, equipment and improvements, net: | ||||||||
Land | $ | 1,800 | $ | 1,800 | ||||
Buildings | 10,522 | 10,522 | ||||||
Improvements | 3,863 | 3,763 | ||||||
Equipment | 14,989 | 14,093 | ||||||
Purchased software | 12,296 | 11,971 | ||||||
Furniture and fixtures | 2,481 | 2,595 | ||||||
Total property, equipment and improvements, gross | 45,951 | 44,744 | ||||||
Less accumulated depreciation and amortization | 32,041 | 29,587 | ||||||
Total property, equipment and improvements, net | $ | 13,910 | $ | 15,157 | ||||
Marketable_Securities
Marketable Securities | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Marketable Securities [Abstract] | ' | |||||||||||||||
MARKETABLE SECURITIES | ' | |||||||||||||||
MARKETABLE SECURITIES | ||||||||||||||||
Our marketable securities consist of certificates of deposit, commercial paper, corporate bonds and government municipal bonds. We analyze our available-for-sale marketable securities for impairment on an ongoing basis. When we perform this analysis, we consider factors such as the length of time and extent to which the securities have been in an unrealized loss position and the trend of any unrealized losses. We also consider whether an unrealized loss is a temporary loss or an other-than-temporary loss such as: (a) whether we have the intent to sell the security, or (b) whether it is more likely than not that we will be required to sell the security before its anticipated recovery, or (c) permanent impairment due to bankruptcy or insolvency. | ||||||||||||||||
In order to estimate the fair value for each security in our investment portfolio, we obtain quoted market prices and trading activity for each security, where available. We also review the financial solvency of each security issuer and obtain other relevant information from our investment advisor. As of September 30, 2013, 72 of our 80 securities that we are holding were trading below our amortized cost basis. We determined each decline in value to be temporary based upon the above described factors. We expect to realize the fair value of these securities, plus accrued interest, either at the time of maturity or when the security is sold. All of our current holdings are classified as available-for-sale marketable securities and are recorded at fair value on our consolidated balance sheet with the unrealized gains and losses recorded in accumulated other comprehensive loss. All of our current marketable securities will mature in less than one year and our non-current marketable securities will mature in less than 3 years. We received proceeds from the sale of our available-for-sale marketable securities of $63.1 million , $65.5 million and $44.8 million for fiscal 2013, 2012 and 2011, respectively. | ||||||||||||||||
At September 30, 2013 our marketable securities were (in thousands): | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value (1) | |||||||||||||
Cost (1) | Gains | Losses | ||||||||||||||
Current marketable securities: | ||||||||||||||||
Corporate bonds | $ | 35,161 | $ | 10 | $ | (30 | ) | $ | 35,141 | |||||||
Certificates of deposit | 1,753 | — | (2 | ) | 1,751 | |||||||||||
Government municipal bonds | 10,115 | — | (1 | ) | 10,114 | |||||||||||
Current marketable securities | 47,029 | 10 | (33 | ) | 47,006 | |||||||||||
Non-current marketable securities: | ||||||||||||||||
Corporate bonds | 6,439 | — | (6 | ) | 6,433 | |||||||||||
Certificates of deposit | 11,003 | — | (47 | ) | 10,956 | |||||||||||
Non-current marketable securities | 17,442 | — | (53 | ) | 17,389 | |||||||||||
Total marketable securities | $ | 64,471 | $ | 10 | $ | (86 | ) | $ | 64,395 | |||||||
-1 | Included in amortized cost and fair value is purchased and accrued interest of $629. | |||||||||||||||
At September 30, 2012 our marketable securities were (in thousands): | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value (1) | |||||||||||||
Cost (1) | Gains | Losses | ||||||||||||||
Current marketable securities: | ||||||||||||||||
Corporate bonds | $ | 39,306 | $ | 14 | $ | (19 | ) | $ | 39,301 | |||||||
Commercial paper | 2,000 | — | — | 2,000 | ||||||||||||
Certificates of deposit | 7,262 | — | (4 | ) | 7,258 | |||||||||||
Government municipal bonds | 9,814 | 1 | (2 | ) | 9,813 | |||||||||||
Current marketable securities | 58,382 | 15 | (25 | ) | 58,372 | |||||||||||
Non-current marketable securities: | ||||||||||||||||
Corporate bonds | 2,019 | — | (3 | ) | 2,016 | |||||||||||
Total marketable securities | $ | 60,401 | $ | 15 | $ | (28 | ) | $ | 60,388 | |||||||
-1 | Included in amortized cost and fair value is purchased and accrued interest of $485. | |||||||||||||||
6. MARKETABLE SECURITIES (CONTINUED) | ||||||||||||||||
The following tables show the fair values and gross unrealized losses of our available-for-sale securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category (in thousands): | ||||||||||||||||
30-Sep-13 | ||||||||||||||||
Less than 12 Months | More than 12 Months | |||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
Corporate bonds | $ | 29,911 | $ | (35 | ) | $ | 2,001 | $ | (1 | ) | ||||||
Certificates of deposit | 12,451 | (49 | ) | — | — | |||||||||||
Government municipal bonds | 6,182 | (1 | ) | — | — | |||||||||||
Total | $ | 48,544 | $ | (85 | ) | $ | 2,001 | $ | (1 | ) | ||||||
September 30, 2012 | ||||||||||||||||
Less than 12 Months | More than 12 Months | |||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
Corporate bonds | $ | 6,246 | $ | (22 | ) | $ | — | $ | — | |||||||
Commercial paper | 2,000 | — | — | — | ||||||||||||
Certificates of deposit | 5,114 | (4 | ) | — | — | |||||||||||
Government municipal bonds | 21,143 | (2 | ) | — | — | |||||||||||
Total | $ | 34,503 | $ | (28 | ) | $ | — | $ | — | |||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. This standard also establishes a hierarchy for inputs used in measuring fair value. This standard maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our assumptions about the factors market participants would use in valuing the asset or liability based upon the best information available in the circumstances. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. | ||||||||||||||||
The hierarchy is broken down into the following three levels: | ||||||||||||||||
• | Level 1 — Inputs are quoted prices in active markets for identical assets or liabilities. | |||||||||||||||
• | Level 2 — Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. | |||||||||||||||
• | Level 3 — Inputs are unobservable for the asset or liability and their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 may also include certain investment securities for which there is limited market activity or a decrease in the observability of market pricing for the investments, such that the determination of fair value requires significant judgment or estimation. | |||||||||||||||
Fair value is applied to financial assets such as our marketable securities, which are classified and accounted for as available-for-sale. These items are stated at fair value at each reporting period using the above guidance. | ||||||||||||||||
7. FAIR VALUE MEASUREMENTS (CONTINUED) | ||||||||||||||||
The following tables provide information by level for financial assets that are measured at fair value on a recurring basis (in thousands): | ||||||||||||||||
Fair Value Measurements at September 30, 2013 using: | ||||||||||||||||
Total carrying | Quoted price in | Significant other | Significant | |||||||||||||
value at | active markets | observable inputs | unobservable inputs | |||||||||||||
30-Sep-13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market | $ | 3,957 | $ | 3,957 | $ | — | $ | — | ||||||||
Available-for-sale marketable securities: | ||||||||||||||||
Corporate bonds | 41,574 | — | 41,574 | — | ||||||||||||
Certificates of deposit | 12,707 | — | 12,707 | — | ||||||||||||
Government municipal bonds | 10,114 | — | 10,114 | — | ||||||||||||
Total cash equivalents and marketable | $ | 68,352 | $ | 3,957 | $ | 64,395 | $ | — | ||||||||
securities measured at fair value | ||||||||||||||||
Fair Value Measurements at September 30, 2012 using: | ||||||||||||||||
Total carrying | Quoted price in | Significant other | Significant | |||||||||||||
value at | active markets | observable inputs | unobservable inputs | |||||||||||||
30-Sep-12 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market | $ | 28,355 | $ | 28,355 | $ | — | $ | — | ||||||||
Available-for-sale marketable securities: | ||||||||||||||||
Corporate bonds | 41,317 | — | 41,317 | — | ||||||||||||
Commercial paper | 2,000 | — | 2,000 | — | ||||||||||||
Certificates of deposit | 7,258 | — | 7,258 | — | ||||||||||||
Government municipal bonds | 9,813 | — | 9,813 | — | ||||||||||||
Total cash equivalents and marketable | $ | 88,743 | $ | 28,355 | $ | 60,388 | $ | — | ||||||||
securities measured at fair value | ||||||||||||||||
Cash equivalents are measured at fair value using quoted market prices in active markets for identical assets and are therefore classified as Level 1 assets. We value our Level 2 assets using inputs that are based on market indices of similar assets within an active market. There were no transfers in to or out of our Level 2 financial assets during the twelve months ended September 30, 2013. | ||||||||||||||||
We had no financial assets valued with Level 3 inputs as of September 30, 2013 nor did we purchase or sell any Level 3 financial assets during the twelve months ended September 30, 2013. | ||||||||||||||||
The use of different assumptions, applying different judgment to matters that are inherently subjective and changes in future market conditions could result in different estimates of fair value of our securities, currently and in the future. If market conditions deteriorate, we may incur impairment charges for securities in our investment portfolio. |
Product_Warranty_Obligation
Product Warranty Obligation | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Product Warranties Disclosures [Abstract] | ' | |||||||||||||||
PRODUCT WARRANTY OBLIGATION | ' | |||||||||||||||
PRODUCT WARRANTY OBLIGATION | ||||||||||||||||
In general, we warrant our hardware products to be free from defects in material and workmanship under normal use and service. The warranty periods generally range from one to five years. We typically have the option to either repair or replace hardware products we deem defective with regard to material or workmanship. Estimated warranty costs are accrued in the period that the related revenue is recognized based upon an estimated average per unit repair or replacement cost applied to the estimated number of units under warranty. These estimates are based upon historical warranty incidents and are evaluated on an ongoing basis to ensure the adequacy of the warranty accrual. | ||||||||||||||||
8. PRODUCT WARRANTY OBLIGATION (CONTINUED) | ||||||||||||||||
The following table summarizes the activity associated with the product warranty accrual (in thousands) and is listed on our Consolidated Balance Sheets under Current Liabilities: | ||||||||||||||||
Balance at | Warranties | Settlements | Balance at | |||||||||||||
Fiscal year | 1-Oct | issued | made | September 30 | ||||||||||||
2013 | $ | 1,021 | $ | 669 | $ | (627 | ) | $ | 1,063 | |||||||
2012 | $ | 941 | $ | 730 | $ | (650 | ) | $ | 1,021 | |||||||
2011 | $ | 877 | $ | 885 | $ | (821 | ) | $ | 941 | |||||||
We are not responsible for, and do not warrant that, custom software versions, created by original equipment manufacturer (OEM) customers based upon our software source code, will function in a particular way, will conform to any specifications or are fit for any particular purpose. Further, we do not indemnify these customers from any third-party liability as it relates to or arises from any customization or modifications made by the OEM customer. |
Restructuring
Restructuring | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
RESTRUCTURING | ' | |||||||||||
RESTRUCTURING | ||||||||||||
2013 Restructuring | ||||||||||||
On September 27, 2013, we announced our intention to restructure certain of our operations in the U.S. The restructuring was primarily associated with cost reduction initiatives and resulted in the elimination of 15 positions in our work force. We recorded a restructuring charge of $0.4 million for severance during the fourth quarter of fiscal 2013. The payments associated with these charges and all the actions associated with the restructuring are expected to be completed by the first quarter of fiscal 2014. | ||||||||||||
Below is a summary of the restructuring charges and other activity within the restructuring accrual (in thousands): | ||||||||||||
Employee | Other | Total | ||||||||||
Termination | ||||||||||||
Costs | ||||||||||||
Balance at September 30, 2012 | $ | — | $ | — | $ | — | ||||||
Restructuring charge | 350 | — | 350 | |||||||||
Balance at September 30, 2013 | $ | 350 | $ | — | $ | 350 | ||||||
2012 Restructuring | ||||||||||||
On April 26, 2012, we announced our intention to restructure certain of our operations. The restructuring relates primarily to changes being implemented to focus on a shift in our business to more aggressively sell end-to-end M2M solutions. As a result of this restructuring, we eliminated employment positions in our work force and have moved to hire new employees or re-assign existing employees into newly created positions. We recorded $1.0 million of restructuring charges on a pre-tax basis. These charges were incurred in connection with reductions in force of 30 employees and represented severance of $0.6 million and expenses from vacating facilities in Davis, California and Huntington Beach, California of approximately $0.4 million. The payments associated with these charges and all the actions associated with the restructuring were completed by the second quarter of fiscal 2013. | ||||||||||||
Below is a summary of the restructuring charges and other activity within the restructuring accrual (in thousands): | ||||||||||||
Employee | Other | Total | ||||||||||
Termination | ||||||||||||
Costs | ||||||||||||
Balance at September 30, 2011 | $ | — | $ | — | $ | — | ||||||
Restructuring charge | 568 | 395 | 963 | |||||||||
Payments | (555 | ) | (287 | ) | (842 | ) | ||||||
Balance at September 30, 2012 | 13 | 108 | 121 | |||||||||
Payments | — | (84 | ) | (84 | ) | |||||||
Reversals | (13 | ) | (24 | ) | (37 | ) | ||||||
Balance at September 30, 2013 | $ | — | $ | — | $ | — | ||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
INCOME TAXES | ' | |||||||||||
INCOME TAXES | ||||||||||||
The components of income before income taxes are as follows (in thousands): | ||||||||||||
Fiscal years ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | $ | (395 | ) | $ | 2,808 | $ | 10,173 | |||||
International | 8,633 | 8,089 | 6,342 | |||||||||
Total income before income taxes | $ | 8,238 | $ | 10,897 | $ | 16,515 | ||||||
The components of the income tax provision are as follows (in thousands): | ||||||||||||
Fiscal years ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current: | ||||||||||||
Federal | $ | 1,418 | $ | 2,203 | $ | 3,880 | ||||||
State | 263 | 400 | 342 | |||||||||
Foreign | 3,148 | 3,131 | 2,479 | |||||||||
Deferred: | ||||||||||||
U.S. | (2,270 | ) | (2,229 | ) | (776 | ) | ||||||
Foreign | (126 | ) | (223 | ) | (429 | ) | ||||||
Total income tax provision | $ | 2,433 | $ | 3,282 | $ | 5,496 | ||||||
The net deferred tax asset consists of the following (in thousands): | ||||||||||||
As of September 30, | ||||||||||||
2013 | 2012 | |||||||||||
Current deferred tax asset | $ | 3,174 | $ | 3,389 | ||||||||
Non-current deferred tax asset | 5,832 | 5,010 | ||||||||||
Current deferred tax liability | (60 | ) | (16 | ) | ||||||||
Non-current deferred tax liability | (415 | ) | (630 | ) | ||||||||
Net deferred tax asset | $ | 8,531 | $ | 7,753 | ||||||||
Uncollectible accounts and other reserves | $ | 1,138 | $ | 1,820 | ||||||||
Depreciation and amortization | 255 | 13 | ||||||||||
Inventories | 1,530 | 1,263 | ||||||||||
Compensation costs | 8,025 | 7,034 | ||||||||||
Tax carryforwards | 705 | 679 | ||||||||||
Valuation allowance | (515 | ) | (499 | ) | ||||||||
Identifiable intangible assets | (2,607 | ) | (2,557 | ) | ||||||||
Net deferred tax asset | $ | 8,531 | $ | 7,753 | ||||||||
As of September 30, 2013, we have tax credit carryforwards in a foreign jurisdiction of $0.2 million, the majority of which will expire in 2027. We have generally concluded that it is more likely than not that our deferred tax assets will be realized based on future projected taxable income and the anticipated future reversal of deferred tax liabilities. Our valuation allowance for certain foreign locations at both September 30, 2013 and 2012 was $0.5 million. The amount of the deferred tax assets actually realized could vary if there are differences in the timing or amount of future reversals of existing deferred tax liabilities or changes in the amounts of future taxable income. If our future taxable income projections are not realized, an additional valuation allowance may be required, and would be reflected as income tax expense at the time that any such change in future taxable income is determined. | ||||||||||||
10. INCOME TAXES (CONTINUED) | ||||||||||||
The reconciliation of the statutory federal income tax rate to our effective income tax rate is as follows: | ||||||||||||
Fiscal years ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Statutory income tax rate | 34 | % | 35 | % | 35 | % | ||||||
Increase (decrease) resulting from: | ||||||||||||
State taxes, net of federal benefits | (0.4 | )% | 0.7 | % | 0.5 | % | ||||||
Utilization of tax credits | (7.3 | )% | (2.2 | )% | (1.4 | )% | ||||||
Manufacturing deduction | (0.8 | )% | 0.2 | % | (3.1 | )% | ||||||
Discrete tax benefits | (9.2 | )% | (14.1 | )% | (4.4 | )% | ||||||
Foreign operations | 2 | % | 3.7 | % | 1.1 | % | ||||||
Adjustment of tax contingency reserves | 9.7 | % | 4.9 | % | 2.6 | % | ||||||
Other, net | 1.5 | % | 1.9 | % | 3 | % | ||||||
Effective income tax rate | 29.5 | % | 30.1 | % | 33.3 | % | ||||||
During fiscal 2013, we recorded a discrete tax benefit of $0.8 million, related to the January 2, 2013 enactment of the American Taxpayers Relief Act of 2012 extending the research and development tax credit for the last three quarters of fiscal 2012 and the release of income tax reserves due to the expiration of the statute of limitations from various U.S. and foreign tax jurisdictions. These discrete tax benefits reduced our effective tax rate by 9.2 percentage points for the twelve month period ended September 30, 2013. During fiscal 2013, the income tax provision before discrete tax benefits was higher than the federal statutory rate primarily due to an increase in certain reserves for unrecognized tax benefits and a reduction in domestic tax benefits. | ||||||||||||
During fiscal 2012, we recorded a discrete tax benefit of $1.5 million, related to additional research and development tax credits identified for fiscal years ended September 30, 2009, 2010 and 2011, reversal of tax reserves for closure of various jurisdictions' tax matters and tax rate reductions in foreign jurisdictions. These discrete tax benefits reduced our effective tax rate by 14.1 percentage points for the twelve month period ended September 30, 2012. During fiscal 2012, the income tax provision before discrete tax benefits was higher than the statutory rate primarily due to an increase in certain reserves for unrecognized tax benefits, an adjustment for foreign income taxed at the U.S. rate, partially offset by an adjustment in domestic tax benefits. | ||||||||||||
During fiscal 2011, we recorded a discrete tax benefit of $0.7 million. This benefit primarily resulted from the reversal of tax reserves from various jurisdictions, primarily foreign, related to the expiration of the statute of limitations. It also resulted from the enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 extending the research and development tax credit that allowed us to record tax credits earned during the last three quarters of fiscal 2010 in the first quarter of fiscal 2011. This benefit reduced our effective tax rate by 4.4 percentage points for the twelve month period ended September 30, 2011. | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands): | ||||||||||||
Fiscal years ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Unrecognized tax benefits at beginning of fiscal year | $ | 2,720 | $ | 2,061 | $ | 2,265 | ||||||
Increases related to: | ||||||||||||
Prior year income tax positions | 162 | 631 | 32 | |||||||||
Current year income tax positions | 733 | 441 | 392 | |||||||||
Decreases related to: | ||||||||||||
Prior year income tax positions | — | (94 | ) | — | ||||||||
Expiration of statute of limitations | (283 | ) | (319 | ) | (628 | ) | ||||||
Unrecognized tax benefits at end of fiscal year | $ | 3,332 | $ | 2,720 | $ | 2,061 | ||||||
10. INCOME TAXES (CONTINUED) | ||||||||||||
The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate is $3.4 million. We expect that it is reasonably possible that the total amounts of unrecognized tax benefits will decrease $0.2 million to $0.3 million over the next 12 months due to the expiration of the statute of limitations. | ||||||||||||
We recognize interest and penalties related to income tax matters in income tax expense. During the fiscal years ended September 30, 2013, 2012 and 2011, there were insignificant amounts of interest and penalties related to income tax matters in income tax expense. We had accrued interest and penalties related to unrecognized tax benefits as of both September 30, 2013 and September 30, 2012, of $0.6 million. Our long-term income taxes payable on our consolidated balance sheets includes these accrued interest and penalties in addition to the unrecognized tax benefits in the table above. | ||||||||||||
We operate in multiple tax jurisdictions both in the U.S. and outside of the U.S. Accordingly, we must determine the appropriate allocation of income to each of these jurisdictions. This determination requires us to make several estimates and assumptions. Tax audits associated with the allocation of this income, and other complex issues, may require an extended period of time to resolve and may result in adjustments to our income tax balances in those years that are material to our consolidated balance sheet and results of operations. We are no longer subject to income tax examination for tax years prior to fiscal 2009 in the case of U.S. federal tax authorities and prior to fiscal 2008 for foreign income tax authorities. For state taxing authorities, consisting primarily of Minnesota and California, we are no longer subject to income tax examination for tax years generally before fiscal 2009. | ||||||||||||
At September 30, 2013, we had approximately $24.4 million of accumulated undistributed foreign earnings, for which we have not accrued additional U.S. tax. Our policy is to reinvest earnings of our foreign subsidiaries indefinitely to fund current operations and provide for future international expansion opportunities, and only repatriate earnings to the extent that U.S. taxes have already been recorded. Although we have no current need or intention to repatriate historical earnings in the form of cash in the United States, if we change our assertion from indefinitely reinvesting undistributed foreign earnings, we would have to accrue applicable taxes. The amount of any taxes and the application of any tax credits would be determined based on the income tax laws at the time of such repatriation. Under current tax laws, we estimate the unrecognized deferred tax liability to be in the range of $1.5 million to $2.5 million, which could have a material impact on our current consolidated balance sheet, results of operations and cash flows. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||||||||
STOCK-BASED COMPENSATION | |||||||||||||||||
Stock-based awards are granted under the terms of the 2013 Omnibus Incentive Plan (the Incentive Plan), as well as the 2000 Omnibus Stock Plan as amended and restated as of December 4, 2009 (the Omnibus Plan), which expired during the second quarter of fiscal 2013. Stock-based awards are also granted under the Stock Option Plan as amended and restated as of November 27, 2006 (the Stock Option Plan) and Non-Officer Stock Option Plan as amended and restated as of November 27, 2006 (the Non-Officer Plan), both of which expired during the first quarter of fiscal 2007 (the Plans). Additional awards cannot be made under the Omnibus Plan, the Stock Option Plan or the Non-Officer Plan. The authority to grant options under the Incentive Plan and set other terms and conditions rests with the Compensation Committee of the Board of Directors. | |||||||||||||||||
The Stock Option Plan and the Non-Officer Plan include non-statutory stock options (NSOs) and the Stock Option Plan also includes incentive stock options (ISOs) to employees and others who provide services to us, including consultants, advisers and directors. Options granted under these plans generally vest over a four year service period and will expire if unexercised after ten years from the date of grant. Share awards vest upon continued employment. The exercise price for ISOs and non-employee director options granted under the Stock Option Plan was set at the fair market value of our common stock based on the closing price on the date of grant. The exercise price for NSOs granted under the Stock Option Plan or the Non-Officer Plan was set by the Compensation Committee of the Board of Directors and was set to the exercise price based on the closing price on the date of grant. | |||||||||||||||||
The Incentive Plan authorizes the issuance of up to 1,750,000 common shares in connection with awards of stock options, stock appreciation rights, restricted stock, restricted stock units, performance-based full value awards or stock awards. Eligible participants include our employees, non-employee directors, consultants and advisors. Awards may be granted under the Incentive Plan until January 28, 2023 as the Incentive Plan was ratified on January 28, 2013 at the Annual Meeting of Stockholders. Options under the Omnibus Plan can be granted as either ISOs or NSOs. The exercise price shall be determined by our Compensation Committee but shall not be less than the fair market value of our common stock based on the closing price on the date of grant. As of September 30, 2013, there were approximately 1.5 million shares available for future grants under the Incentive Plan. | |||||||||||||||||
11. STOCK-BASED COMPENSATION (CONTINUED) | |||||||||||||||||
The Omnibus Plan authorized the issuance of up to 5,750,000 common shares in connection with awards of stock options, stock appreciation rights, restricted stock, performance units or stock awards. Eligible participants include our employees, non-employee directors, consultants and advisors. Awards were eligible to be granted under the Omnibus Plan until December 4, 2019 as an authorization to issue an additional 2,500,000 common shares was ratified on January 25, 2010 at the Annual Meeting of Stockholders; however the plan was terminated as to future awards on January 28, 2013 at the Annual Meeting of Stockholders. Options under the Omnibus Plan could be granted as either ISOs or NSOs. The exercise price was determined by our Compensation Committee but could not be less than the fair market value of our common stock based on the closing price on the date of grant. | |||||||||||||||||
We recorded cash received from the exercise of stock options of $2.2 million, $1.1 million and $2.9 million during fiscal years 2013, 2012 and 2011, respectively. The excess tax benefits from stock-based compensation were $0.1 million during fiscal 2013, $0.2 million during fiscal 2012 and $0.8 million during fiscal year 2011. Upon exercise, we issue new shares of stock. The Plans have provisions allowing employees to elect to pay their withholding obligation through share reduction. No employees elected to pay income tax withholding obligations through share reduction during fiscal years 2013, 2012 and 2011. | |||||||||||||||||
Also, we sponsor an Employee Stock Purchase Plan as amended and restated as of December 4, 2009 and November 27, 2006 (the Purchase Plan), covering all domestic employees with at least 90 days of continuous service and who are customarily employed at least 20 hours per week. The Purchase Plan allows eligible participants the right to purchase common stock on a quarterly basis at the lower of 85% of the market price at the beginning or end of each three-month offering period. The Purchase Plan was ratified on January 25, 2010 at the Annual Meeting of Stockholders to increase the number of shares reserved for future purchases to the Purchase Plan by 250,000 shares bringing the total number of shares to 2,000,000 shares of our Common Stock that may be purchased under the plan. Employee contributions to the Purchase Plan were $1.0 million in fiscal 2013, 2012 and 2011. Pursuant to the Purchase Plan, 128,853, 115,477, and 112,285 common shares were issued to employees during the fiscal years ended 2013, 2012 and 2011, respectively. Shares are issued under the Purchase Plan from treasury stock. As of September 30, 2013, 70,827 common shares were available for future issuances under the Purchase Plan. | |||||||||||||||||
Stock-based compensation expense is included in the consolidated results of operations as follows (in thousands): | |||||||||||||||||
Fiscal years ended September 30, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of sales | $ | 183 | $ | 166 | $ | 136 | |||||||||||
Sales and marketing | 1,261 | 1,271 | 1,156 | ||||||||||||||
Research and development | 772 | 724 | 771 | ||||||||||||||
General and administrative | 1,556 | 1,566 | 1,381 | ||||||||||||||
Stock-based compensation before income taxes | 3,772 | 3,727 | 3,444 | ||||||||||||||
Income tax benefit | (1,192 | ) | (1,240 | ) | (1,143 | ) | |||||||||||
Stock-based compensation after income taxes | $ | 2,580 | $ | 2,487 | $ | 2,301 | |||||||||||
Stock-based compensation cost capitalized as part of inventory was immaterial as of September 30, 2013, 2012 and 2011. | |||||||||||||||||
11. STOCK-BASED COMPENSATION (CONTINUED) | |||||||||||||||||
A summary of options and common shares reserved for grant under the Plans and Assumed Plans are as follows (in thousands, except per common share amounts): | |||||||||||||||||
Options Outstanding | Weighted Average Exercised Price | Weighted Average Contractual Term (in years) | Aggregate Intrinsic Value (1) | ||||||||||||||
Balance at September 30, 2012 | 5,754 | $10.76 | |||||||||||||||
Additional shares approved for grant | |||||||||||||||||
Granted | 1,049 | 9.33 | |||||||||||||||
Exercised | (280 | ) | 9.76 | ||||||||||||||
Cancelled | (244 | ) | 10.35 | ||||||||||||||
Balance at September 30, 2013 | 6,279 | $10.67 | 5.6 | $ | 3,152 | ||||||||||||
Exercisable at September 30, 2013 | 4,562 | $11.00 | 4.6 | $ | 2,357 | ||||||||||||
(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $9.99 as of September 30, 2013, which would have been received by the option holders had all option holders exercised their options as of that date. | |||||||||||||||||
The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. The total intrinsic value of all options exercised during each of the twelve months ended September 30, 2013, 2012 and 2011 was $0.5 million, $0.7 million and $2.4 million, respectively. | |||||||||||||||||
The table below shows the weighted average fair value, which was determined based upon the fair value of each option on the grant date utilizing the Black-Scholes option-pricing model and the related assumptions: | |||||||||||||||||
Fiscal years ended September 30, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Fair value of options granted (in thousands) | $ | 3,950 | $ | 4,086 | $ | 4,948 | |||||||||||
Weighted average per option grant date fair value | $ | 3.77 | $ | 4.45 | $ | 4.14 | |||||||||||
Assumptions used for option grants: | |||||||||||||||||
Risk free interest rate | 0.88% - 1.78% | 0.84% - 1.33% | 1.58% - 2.14% | ||||||||||||||
Expected term | 6.25 years | 6.25 years | 5.25 years | ||||||||||||||
Expected volatility | 40% | 41% - 42% | 41% - 44% | ||||||||||||||
Weighted average volatility | 40% | 41% | 43% | ||||||||||||||
Expected dividend yield | 0 | 0 | 0 | ||||||||||||||
The fair value of each option award granted during the periods presented was estimated using the Black-Scholes option valuation model that uses the assumptions noted in the table above. Expected volatilities are based on the historical volatility of our stock. We use historical data to estimate option exercise and employee termination information within the valuation model; separate groups of grantees that have similar historical exercise behaviors are considered separately for valuation purposes. The expected term of options granted is derived from the vesting period and historical information and represents the period of time that options granted are expected to be outstanding. The risk-free rate used is the zero-coupon U.S. Treasury bond rate in effect at the time of the grant whose maturity equals the expected term of the option. | |||||||||||||||||
11. STOCK-BASED COMPENSATION (CONTINUED) | |||||||||||||||||
A summary of our non-vested options as of September 30, 2013 and changes during the twelve months then ended is presented below (in thousands, except per common share amounts): | |||||||||||||||||
Number of Options | Weighted Average Grant Date Fair Value per Common Share | ||||||||||||||||
Nonvested at September 30, 2012 | 1,756 | $ | 3.58 | ||||||||||||||
Granted | 1,049 | $ | 3.77 | ||||||||||||||
Vested | (844 | ) | $ | 3.71 | |||||||||||||
Forfeited | (244 | ) | $ | 4.05 | |||||||||||||
Nonvested at September 30, 2013 | 1,717 | $ | 3.56 | ||||||||||||||
We use historical data to estimate pre-vesting forfeiture rates. The pre-vesting forfeiture rate used in fiscal 2013 was 2.0%. As of September 30, 2013 the total unrecognized compensation cost related to non-vested stock-based compensation arrangements, net of expected forfeitures, was $6.0 million and the related weighted average period over which it is expected to be recognized is approximately 2.5 years. | |||||||||||||||||
At September 30, 2013, the weighted average exercise price and remaining life of the stock options are as follows (in thousands, except remaining life and exercise price): | |||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Range of Exercise Prices | Options Outstanding | Weighted Average Remaining Contractual Life (In Years) | Weighted Average Exercise Price | Number of Shares Vested | Weighted Average Exercise Price | ||||||||||||
$6.75 - $8.03 | 752 | 6.03 | $ | 8.01 | 726 | $ | 8.01 | ||||||||||
$8.04 - $9.50 | 1,312 | 7.48 | $ | 9.02 | 440 | $ | 8.49 | ||||||||||
$9.51 - $10.00 | 1,274 | 5.99 | $ | 9.68 | 905 | $ | 9.7 | ||||||||||
$10.01 - $11.00 | 1,183 | 6.15 | $ | 10.65 | 786 | $ | 10.66 | ||||||||||
$11.01 - $13.00 | 616 | 3.64 | $ | 12.36 | 594 | $ | 12.37 | ||||||||||
$13.01 - $15.00 | 656 | 2.61 | $ | 13.98 | 626 | $ | 13.95 | ||||||||||
$15.01 - $16.88 | 486 | 3.47 | $ | 15.27 | 485 | $ | 15.27 | ||||||||||
$6.75 - $16.88 | 6,279 | 5.56 | $ | 10.67 | 4,562 | $ | 11 | ||||||||||
The total grant date fair value of shares vested was $3.1 million in fiscal 2013, $3.0 million in fiscal 2012 and $3.7 million in fiscal 2011. | |||||||||||||||||
A summary of our non-vested restricted stock units as of September 30, 2013 and changes during the twelve months then ended is presented below (in thousands, except per common share amounts): | |||||||||||||||||
Number of Options | Weighted Average Grant Date Fair Value per Common Share | ||||||||||||||||
Nonvested at September 30, 2012 | — | $ | — | ||||||||||||||
Granted | 49 | $ | 9.71 | ||||||||||||||
Vested | — | $ | — | ||||||||||||||
Forfeited | — | $ | — | ||||||||||||||
Nonvested at September 30, 2013 | 49 | $ | 9.71 | ||||||||||||||
As of September 30, 2013, the total unrecognized compensation cost related to non-vested restricted stock units was $0.3 million and the related weighted average period over which it is expected to be recognized is approximately 0.9 years. |
Common_Stock_Repurchase
Common Stock Repurchase | 12 Months Ended |
Sep. 30, 2013 | |
Equity [Abstract] | ' |
COMMON STOCK REPURCHASE | ' |
COMMON STOCK REPURCHASE | |
On July 25, 2012 our Board of Directors authorized a program to repurchase up to $20.0 million of our common stock, primarily to support our employee stock purchase program and to return capital to shareholders. This repurchase authorization expired on September 30, 2013. We repurchased 1,481,365 shares for $14.1 million under this program during fiscal 2013. |
Share_Rights_Plan
Share Rights Plan | 12 Months Ended |
Sep. 30, 2013 | |
Warrants and Rights Note Disclosure [Abstract] | ' |
SHARE RIGHTS PLAN | ' |
SHARE RIGHTS PLAN | |
Under our share rights plan, each right entitles its holder to buy one one-hundredth of a share of a Series A Junior Participating Preferred Stock at an exercise price of $60, subject to adjustment. The rights are not exercisable until a specified distribution date as defined in the Share Rights Agreement. The Rights will expire on June 30, 2018, unless extended or earlier redeemed or exchanged by us as defined in the Share Rights Agreement. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
EMPLOYEE BENEFIT PLANS | ' |
EMPLOYEE BENEFIT PLANS | |
We currently have a savings and profit sharing plan pursuant to Section 401(k) of the Internal Revenue Code (the Code), whereby eligible employees may contribute up to 25% of their pre-tax earnings, not to exceed amounts allowed under the Code. | |
We provide a match of 100% on the first 3% of each employee's bi-weekly contribution and a 50% match on the next 2% of each employee's bi-weekly contribution. In addition, we may make contributions to the plan at the discretion of the Board of Directors. We provided matching contributions of $1.4 million for fiscal 2013 and $1.3 million for both fiscal 2012 and 2011. |
Commitments
Commitments | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Leases, Operating [Abstract] | ' | |||||||||||
COMMITMENTS | ' | |||||||||||
COMMITMENTS | ||||||||||||
We have entered into various operating lease agreements for office facilities and equipment, the last of which expires in fiscal 2018. The office facility leases generally require us to pay a pro-rata share of the lessor's operating expenses. Certain operating leases contain escalation clauses and are being amortized on a straight-line basis over the term of the lease. | ||||||||||||
The following schedule reflects future minimum rental commitments under noncancelable operating leases (in thousands): | ||||||||||||
Fiscal year | Amount | |||||||||||
2014 | $ | 2,527 | ||||||||||
2015 | 1,714 | |||||||||||
2016 | 1,072 | |||||||||||
2017 | 234 | |||||||||||
2018 | 2 | |||||||||||
Thereafter | — | |||||||||||
Total minimum payments required | $ | 5,549 | ||||||||||
The following schedule shows the composition of total rental expense for all operating leases for the years ended September 30 (in thousands): | ||||||||||||
Fiscal years ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Rentals | $ | 3,053 | $ | 3,093 | $ | 3,275 | ||||||
Less: sublease rentals | (31 | ) | (41 | ) | (17 | ) | ||||||
Total rental expense | $ | 3,022 | $ | 3,052 | $ | 3,258 | ||||||
Contingencies
Contingencies | 12 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
CONTINGENCIES | ' |
CONTINGENCIES | |
Initial Public Offering Securities Litigation | |
On April 19, 2002, a consolidated amended class action complaint was filed in the United States District Court for the Southern District of New York asserting claims relating to the initial public offering (“IPO”) of our subsidiary NetSilicon, Inc. and approximately 300 other public companies. We acquired NetSilicon on February 13, 2002. The complaint named us as a defendant along with NetSilicon, certain of its officers and certain underwriters involved in NetSilicon's IPO, among numerous | |
16. CONTINGENCIES (CONTINUED) | |
others, and asserted, among other things, that NetSilicon's IPO prospectus and registration statement violated federal securities laws because they contained material misrepresentations and/or omissions regarding the conduct of NetSilicon's IPO underwriters in allocating shares in NetSilicon's IPO to the underwriters' customers. We believed that the claims against the NetSilicon defendants were without merit and we defended the litigation vigorously. Pursuant to a stipulation between the parties, the two named officers were dismissed from the lawsuit, without prejudice, on October 9, 2002. | |
As previously disclosed, the parties advised the District Court on February 25, 2009 that they had reached an agreement-in-principle to settle the litigation in its entirety. A stipulation of settlement was filed with the District Court on April 2, 2009. On June 9, 2009, the District Court preliminarily approved the proposed global settlement. Notice was provided to the class, and a settlement fairness hearing, at which members of the class had an opportunity to object to the proposed settlement, was held on September 10, 2009. On October 6, 2009, the District Court issued an order granting final approval to the settlement. Ten appeals were filed objecting to the definition of the settlement class and fairness of the settlement. Five of those appeals were dismissed with prejudice on October 6, 2010. On May 17, 2011, the Court of Appeals dismissed four of the remaining appeals. On January 10, 2012, the last remaining appeal was dismissed with prejudice, as a result of which the settlement became final, by its terms. | |
In March 2012, our insurers paid to the plaintiffs on our behalf the full amount of the settlement share allocated to us of $337,838. We have no financial liability under the terms of the settlement agreement. As a result, during the second fiscal quarter of 2012, we reversed our accrued liability of $300,000 and the related receivable of $50,000. These amounts originally represented our estimated settlement of $300,000 less our $250,000 deductible. | |
Patent Infringement Lawsuits | |
On May 29, 2012, U.S. Ethernet Innovations, LLC filed a patent infringement lawsuit against us in federal court in the Eastern District of Texas. The lawsuit included allegations against us and one other company pertaining to the infringement of four patents related to Ethernet technology. On April 22, 2013, we announced the settlement of this patent infringement lawsuit for $1.5 million, which was recorded in general and administrative expense on our Consolidated Statements of Operations during the second quarter of fiscal 2013. The settlement was paid during the third quarter of fiscal 2013. The settlement fully resolves the claims by USEI with no future payment obligations. Net of taxes, the settlement was $1.0 million and therefore reduced earnings per diluted share for the second quarter of fiscal 2013 by approximately $0.04. | |
On May 11, 2010, SIPCO, LLC filed a complaint naming us as a defendant in federal court in the Eastern District of Texas. This claim subsequently was moved to the Northern District of Georgia. The complaint included allegations against us and five other companies pertaining to the infringement of SIPCO's patents by wireless mesh networking and multi-port networking products. On October 23, 2012, we settled the lawsuit for a payment of $500,000 which was recorded in general and administrative expense on our Consolidated Statements of Operations during the fourth quarter of fiscal 2012, and we entered into a royalty-bearing license agreement for future sales of licensed products sold during the term of the agreement through 2018. We do not expect this license agreement to have a material impact on our consolidated financial statements in the future. | |
Collection Matter | |
In December 2011, our wholly owned subsidiary, Spectrum Design Services, Inc. (now renamed Etherios Design Services), brought claims against Iota, Inc. (“Iota”) and Corsair Engineering, Inc. (“Corsair”) in Minnesota State District Court. The claims were made to collect unpaid receivables from Iota that were subject to a payment guaranty from Corsair. These claims arose out of a contract between Iota and Spectrum for the development of a custom product for Iota. Spectrum ceased work on the project for non-payment of invoices before making its claims. During our second quarter of fiscal 2012, Iota and Corsair removed the cases to Federal District Court in Minnesota and Iota asserted counterclaims against Spectrum for breach of contractual warranty, breach of contract and negligent misrepresentation. The counterclaims alleged damages for recovery of over $300,000 previously paid by Iota to Spectrum as well as lost profits and other damages. In connection with the mediation completed on June 29, 2012, we, Iota and Corsair signed an agreement to dismiss all claims related to this matter and reached a settlement on the unpaid receivable. The settlement did not have a material impact to us. | |
In addition to the matters discussed above, in the normal course of business, we are subject to various claims and litigation, which may include, but are not limited to, patent infringement and intellectual property claims. While we are unable to predict the outcome of any potential claims or litigation due to the inherent unpredictability of these matters, we believe that it is possible that we could, in the future, incur judgments or enter into settlements of claims that could have a material adverse effect on our operations in any particular period. |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly Financial Data | ' | |||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||
(in thousands, except per common share data) | ||||||||||||||||
Quarter ended | ||||||||||||||||
Dec. 31 | 31-Mar | 30-Jun | Sept. 30 | |||||||||||||
Fiscal 2013 | ||||||||||||||||
Revenue | $ | 46,991 | $ | 48,197 | $ | 48,824 | $ | 51,369 | ||||||||
Gross profit | 24,479 | 24,961 | 24,720 | 25,963 | ||||||||||||
Net income (1)(2)(3)(4) | 1,230 | 1,000 | 1,528 | 2,047 | ||||||||||||
Net income per common share - basic | 0.05 | 0.04 | 0.06 | 0.08 | ||||||||||||
Net income per common share - diluted | 0.05 | 0.04 | 0.06 | 0.08 | ||||||||||||
Fiscal 2012 | ||||||||||||||||
Revenue | $ | 46,662 | $ | 49,016 | $ | 47,632 | $ | 47,248 | ||||||||
Gross profit | 24,430 | 25,783 | 25,304 | 24,820 | ||||||||||||
Net income (1)(2) | 724 | 2,122 | 2,307 | 2,462 | ||||||||||||
Net income per common share - basic | 0.03 | 0.08 | 0.09 | 0.1 | ||||||||||||
Net income per common share - diluted | 0.03 | 0.08 | 0.09 | 0.09 | ||||||||||||
-1 | During fiscal 2013 and 2012, we recorded discrete tax benefits of $0.8 million and $1.5 million, respectively. We recorded a benefit of $0.1 million in the first quarter of fiscal 2013 resulting from the release of income tax reserves due to the expiration of the statute of limitations from various U.S. and foreign tax jurisdictions. During the second quarter of fiscal 2013, we recorded a discrete tax benefit of $0.4 million resulting from the enactment of legislation on January 2, 2013 extending the research and development credit for the last three quarters of fiscal 2012. In the third quarter of fiscal 2013, we recorded a benefit of $0.1 million for the release of income tax reserves due to the expiration of the statute of limitations for U.S. Federal income tax for fiscal 2009. In the fourth quarter of fiscal 2013, we recorded $0.2 million for the reversal of tax reserves resulting from expiration of the statute of limitations for state income taxes. | |||||||||||||||
We recorded a benefit of $0.1 million in the first quarter of fiscal 2012 resulting from the release of income tax reserves due to the expiration of the statute of limitations from various U.S. tax jurisdictions. During the third quarter of fiscal 2012, we recorded $1.1 million for additional research and development tax credits identified for fiscal years ended September 30, 2009, 2010 and 2011 from a recently completed research and development tax credit study. During the fourth quarter of fiscal 2012, we recorded $0.3 million relating to expiration of statute of limitations for state income taxes and a reduction in a foreign statutory rate. | ||||||||||||||||
-2 | During fiscal 2013, we recorded a business restructuring accrual of $0.4 million ($0.2 million after tax) in the fourth quarter of fiscal 2013. During fiscal 2012, we recorded a business restructuring accrual of $0.2 million ($0.2 million after tax) in the first quarter, $0.1 million ($0.0 million after tax) in the second quarter and $1.0 million ($0.6 million after tax) in the third quarter. | |||||||||||||||
-3 | During the second quarter of fiscal 2013, we recorded a charge of $1.5 million ($1.0 million after tax) for the settlement of a patent infringement lawsuit. | |||||||||||||||
-4 | During the fourth quarter of fiscal 2013, we recorded a charge of $0.4 million ($0.2 million after tax) for impairment of certain intangibles. |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | |
On October 29, 2013, our Board of Directors authorized a new program to repurchase up to $20 million of our common stock. This new repurchase authorization expires on October 31, 2014 and replaces the program that expired on September 30, 2013. In connection with this new repurchase authorization, the Board confirmed the expiration of the prior repurchase authorization. Shares repurchased under the new program may be made through open market and privately negotiated transactions from time to time and in amounts that management deems appropriate. The timing of share repurchases will depend upon market conditions and other corporate considerations. | |
On October 31, 2013, we announced our intention to restructure certain of our operations in India. The restructuring was primarily associated with cost reduction initiatives resulting in the elimination of approximately 40 engineering and sales positions in our work force. We expect to record a restructuring charge of $0.2 million related to severance during the first quarter of fiscal 2014. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||||
Schedule II- Valuation and Qualifying Accounts | ' | |||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||
DIGI INTERNATIONAL INC. | ||||||||||||||||||
(in thousands) | ||||||||||||||||||
Description | Balance at beginning of period | Increase (Decrease) to costs and expenses | Deductions | Balance at end of period | ||||||||||||||
Valuation account - doubtful accounts | ||||||||||||||||||
September 30, 2013 | $ | 295 | $ | 309 | $ | 291 | -1 | $ | 313 | |||||||||
September 30, 2012 | $ | 339 | $ | 418 | $ | 462 | -1 | $ | 295 | |||||||||
September 30, 2011 | $ | 549 | $ | (96 | ) | $ | 114 | -1 | $ | 339 | ||||||||
Reserve for future returns and pricing adjustments | ||||||||||||||||||
September 30, 2013 | $ | 1,362 | $ | 6,973 | $ | 6,565 | $ | 1,770 | ||||||||||
September 30, 2012 | $ | 1,280 | $ | 4,881 | $ | 4,799 | $ | 1,362 | ||||||||||
September 30, 2011 | $ | 1,106 | $ | 5,156 | $ | 4,982 | $ | 1,280 | ||||||||||
-1 | Uncollectible accounts charged against allowance, net of recoveries |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Sep. 30, 2013 | ||
Accounting Policies [Abstract] | ' | |
Principles of Consolidation | ' | |
Principles of Consolidation | ||
The consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | ||
Changes in Presentation | ' | |
Changes in Presentation | ||
Beginning with this 10-K, we began presenting product and service revenue, as well as cost of product and service revenue, on the face of our income statement. The prior year data for these line items has been recast accordingly. These reclassifications had no effect on reported consolidated net earnings. | ||
Cash Equivalents | ' | |
Cash Equivalents | ||
Cash equivalents consist of money market accounts and other highly liquid investments purchased with an original maturity of three months or less. The carrying amounts approximate fair value due to the short maturities of these investments. | ||
Marketable Securities | ' | |
Marketable Securities | ||
Marketable securities consist of certificates of deposit, commercial paper, corporate bonds and government municipal bonds. All marketable securities are accounted for as available-for-sale and are carried at fair value on our consolidated balance sheets with unrealized gains and losses recorded in accumulated other comprehensive loss within stockholders' equity. In order to estimate the fair value for each security in our investment portfolio, we obtain quoted market prices and trading activity for each security where available. We obtain relevant information from our investment advisor and, if warranted, also may review the financial solvency of certain security issuers. | ||
We regularly monitor and evaluate the value of our marketable securities. When assessing marketable securities for other-than-temporary declines in value, we consider several factors. These factors include: how significant the decline in value is as a percentage of the original cost, how long the market value of the investment has been less than its original cost, the underlying factors contributing to a decline in the prices of securities in a single asset class, the performance of the issuer's stock price in relation to the stock price of its competitors within the industry, expected market volatility, analyst recommendations, the views of external investment managers, any news or financial information that has been released specific to the investee and the outlook for the overall industry in which the issuer operates. If events and circumstances indicate that a decline in the value of a security has occurred and is other-than-temporary, we would record a charge to other income (expense). | ||
Accounts Receivable | ' | |
Accounts Receivable | ||
Accounts receivable are stated at the amount we expect to collect, which is net of an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. The following factors are considered when determining the collectability of specific customer accounts: customer creditworthiness, past transaction history with the customer, and changes in customer payment terms or practices. In addition, overall historical collection experience, current economic industry trends, and a review of the current status of trade accounts receivable are considered when determining the required allowance for doubtful accounts. Based on our assessment, we provide for estimated uncollectible amounts through a charge to earnings and a credit to our allowance for doubtful accounts. Balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and a credit to accounts receivable. | ||
Inventories | ' | |
Inventories | ||
Inventories are stated at the lower of cost or fair market value, with cost determined using the first-in, first-out method. Appropriate consideration is given to deterioration, obsolescence and other factors in evaluating fair market value. | ||
Property, Equipment and Improvements, Net | ' | |
Property, Equipment and Improvements, Net | ||
Property, equipment and improvements are carried at cost, net of accumulated depreciation. Depreciation is provided by charges to operations using the straight-line method over the estimated asset useful lives. Furniture and fixtures and other equipment are depreciated over a period of three to seven years. Building improvements and buildings are depreciated over ten and thirty-nine years, respectively. Equipment under capital lease is depreciated over the lesser of the lease term or its depreciable life. | ||
Expenditures for maintenance and repairs are charged to operations as incurred, while major renewals and betterments are capitalized. The assets and related accumulated depreciation accounts are adjusted for asset retirements and disposals with the resulting gain or loss included in operations. | ||
Identifiable Intangible Assets | ' | |
Identifiable Intangible Assets | ||
Purchased proven technology, license agreements, covenants not to compete and other identifiable intangible assets are recorded at fair value when acquired in a business acquisition, or at cost when not purchased in a business acquisition. Purchased in-process research and development costs (IPR&D) related to business combinations are capitalized and amortized once placed in service. All other identifiable intangible assets are amortized on either a straight-line basis over their estimated useful lives of three to thirteen years or based on the pattern in which the asset is consumed. Useful lives for identifiable intangible assets are estimated at the time of acquisition based on the periods of time from which we expect to derive benefits from the identifiable intangible assets. Amortization of purchased and core technology is included in cost of product in the Consolidated Statements of Operations. Amortization of all other acquired identifiable intangible assets is charged to operating expenses as a component of general and administrative expense. | ||
Identifiable intangible assets are reviewed for impairment annually or whenever events or circumstances indicate that undiscounted expected future cash flows are not sufficient to recover the carrying value amount. We measure impairment loss by utilizing an undiscounted cash flow valuation technique using fair values indicated by the income approach. Impairment losses, if any, would be recorded in the period the impairment is identified. During the fourth quarter of fiscal 2013, we recorded an impairment charge of $0.4 million included in general and administrative expense on our Consolidated Statements of Operations for our single operating and reporting segment (see Note 3 to our Consolidated Financial Statements). There were no other impairments identified in fiscal 2013 and there were no impairments identified during fiscal years 2012 or 2011. | ||
Goodwill | ' | |
Goodwill | ||
Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is tested for impairment on an annual basis as of June 30, or more frequently if events or circumstances occur which could indicate impairment. The calculation of goodwill impairment requires us to make assumptions about the fair value of our one reporting unit, which historically has been approximated by using our market capitalization plus a control premium. Control premium assumptions require judgment and actual results may differ from assumed or estimated amounts. | ||
In June 2012 we performed a control premium study to determine the appropriate control premium to include in the calculation of fair value, using a third party valuation firm to assist us in performing the control premium analysis. In order to estimate the range of control premiums appropriate for us, three methodologies were used, including: (1) analysis of individual transactions within our industry; (2) analysis of industry-wide data, and (3) analysis of global transaction data. Individual transactions in the Communication Equipment or Computer & Peripherals industries were used to find transactions of target companies that operated in similar markets and shared similar operating characteristics with Digi. Transaction screening criteria included selection of transactions with the following characteristics: | ||
•At least 50 percent of a target company's equity sought by an acquirer, | ||
•Target company considered operating (not in bankruptcy), | ||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) | ||
• | Target company had publicly traded stock outstanding at the transaction date, and | |
• | Transactions announced between June 30, 2007 and the valuation date. | |
In analyzing industry-wide data, transactions in three industries were identified that encompassed the products offered by us: Office Equipment and Computer Hardware, Communications, and Computer, Supplies and Services. Finally, control premiums were considered for both domestic and international transactions. The control premium analysis resulted in a range of control premium of 30% to 45%. We reviewed the data provided and estimated that a 40% control premium best represented the amount an investor would likely pay, over and above market capitalization, in order to obtain a controlling interest given the economic conditions at that time. We chose 40% as it approximated the midpoint of the range and reflected the overall increase in control premiums over the past several years. Based on our industry knowledge and recent discussions with our third party valuation firm, we concluded that the control premium study that was performed in conjunction with our annual goodwill impairment assessment at June 30, 2012 remained valid and that the 40% control premium used in our prior year's assessment continued to best represent the amount an investor likely would pay, over and above market capitalization, in order to obtain a controlling interest given current economic conditions in both fiscal 2012 and fiscal 2013. | ||
At June 30, 2013, our market capitalization was $241.4 million compared to our carrying value of $272.3 million. Our market capitalization plus our estimated control premium of 40% resulted in a fair value in excess of our carrying value by a margin of 24%. As a result, no impairment was indicated and we were not required to complete the second step of the goodwill impairment analysis. No goodwill impairment charges were recorded. At September 30, 2013, our market capitalization was $255.3 million compared to our carrying value of $274.3 million. Since there were no triggering events through September 30, 2013, and our market capitalization plus our estimated control premium of 40% resulted in a fair value in excess of our carrying value by a margin of 30%, no impairment was indicated. | ||
As of June 30, 2012, our market capitalization was $264.3 million compared to our carrying value of $265.7 million. Our market capitalization plus our estimated control premium of 40% resulted in a fair value in excess of our carrying value by a margin of 39% and therefore no impairment was indicated. | ||
If our stock price or control premium declines, the first step of our goodwill impairment analysis may fail. We have defined the criteria that could result in additional interim goodwill impairment testing. We would perform the second step of the impairment testing if our stock price fell below defined thresholds for a significant period of time, or if our control premium significantly decreased. Events or circumstances may occur that could negatively impact our stock price, including changes in our anticipated revenue and profits and our ability to execute on our strategies. In addition, our control premium could decline due to changes in economic conditions, in the technology industry, in the financial markets or more generally. An impairment could have a material effect on our consolidated balance sheet and results of operations. We have had no goodwill impairment losses since the adoption of Accounting Standards Codification (ASC) 350, Intangibles-Goodwill and Others, in fiscal 2003. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
We recognize revenue in accordance with authoritative guidance issued by FASB related to revenue recognition. | ||
Hardware product revenue as a percentage of total revenue was 88.6%, 94.7% and 94.6% in fiscal 2013, 2012 and 2011, respectively. We recognize hardware product revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, collectability is reasonably assured and there are no post-delivery obligations, other than warranty. Under these criteria, product revenue generally is recognized upon shipment of product to customers. Sales to authorized domestic distributors and Direct / OEMs are made with certain rights of return and price adjustment provisions. Estimated reserves for future returns and pricing adjustments are established by us based on an analysis of historical patterns of returns and price adjustments as well as an analysis of authorized returns compared to received returns, current on-hand inventory at distributors, and distribution sales for the current period. Estimated reserves for future returns and price adjustments are charged against revenue in the same period as the corresponding revenue is recorded. | ||
Revenue recognized for service revenue as a percentage of total revenue represented 11.4%, 5.3% and 5.4% in fiscal 2013, 2012 and 2011, respectively. Our service revenue is derived primarily from professional and engineering services performed by our Etherios customer relationship management (CRM) and wireless design teams. We also have some service revenue that is derived from our Device Cloud by Etherios, which is a platform-as-a-service (PAAS) offering in which customers pay for services consumed in terms of devices being managed and monitored, or as a monthly service fee for access to information. In addition, we have small amounts of revenue from technical support and training. We recognize service revenue from our | ||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) | ||
Etherios CRM professional services, wireless design services, and Device Cloud based upon performance, including final product delivery and customer acceptance. In addition, we recognize small amounts of revenue from technical support and training as the services are performed. Such revenue is deferred and recognized over the life of the contract as the service is performed. | ||
Research and Development | ' | |
Research and Development | ||
Research and development costs are expensed when incurred. Research and development costs include compensation, allocation of corporate costs, depreciation, utilities, professional services and prototypes. Software development costs are expensed as incurred until the point that technological feasibility and proven marketability of the product are established. To date, the time period between the establishment of technological feasibility and completion of software development has been short, and no significant development costs have been incurred during that period. Accordingly, we have not capitalized any software development costs to date. | ||
Income Taxes | ' | |
Income Taxes | ||
Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Income tax expense is equal to the tax payable for the period and the change during the period in deferred tax assets and liabilities and also changes in income tax reserves. | ||
Net Income Per Common Share | ' | |
Net Income Per Common Share | ||
Basic net income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares of our stock result from dilutive common stock options and restricted stock units. We use the treasury stock method to calculate the weighted-average shares used in the diluted earnings per share computation. Under the treasury stock method, the proceeds from exercise of an option, the amount of compensation cost, if any, for future service that we have not yet recognized, and the amount of estimated tax benefits that would be recorded in paid-in capital, if any, when the option is exercised are assumed to be used to repurchase shares in the current period. | ||
Stock-Based Compensation | ' | |
Stock-Based Compensation | ||
Stock-based compensation expense represents the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. This cost must be recognized over the period during which an employee is required to provide the service (usually the vesting period). | ||
Foreign Currency Translation | ' | |
Foreign Currency Translation | ||
Financial position and results of operations of our international subsidiaries are measured using local currencies as the functional currency, except for our Singapore location which uses the U.S. Dollar as its local currency. Assets and liabilities of these operations are translated at the exchange rates in effect at the end of each reporting period. Statements of operations accounts are translated at the weighted average rates of exchange prevailing during each reporting period. Translation adjustments arising from the use of differing currency exchange rates from period to period are included in accumulated other comprehensive income (loss) in stockholders' equity. Gains and losses on foreign currency exchange transactions, as well as translation gains or losses on transactions denominated in currencies other than an entity's functional currency are reflected in the statement of operations. During fiscal 2013, 2012 and 2011 there were net transaction gains (losses) of $0.4 million, $(0.4) million and $(0.7) million, respectively, that were recorded in other income (expense). We manage our net asset or net liability position for U.S. dollar accounts in our foreign locations to reduce our foreign currency risk. We have not implemented a formal hedging strategy. | ||
Use of Estimates and Risks and Uncertainties | ' | |
Use of Estimates and Risks and Uncertainties | ||
The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates that could significantly affect our results of operations or financial condition involve the assignment of fair values upon acquisition of goodwill and other intangible assets and testing for impairment; the determination of our allowance for doubtful accounts and reserve for future returns and pricing adjustments; the estimation of our inventory obsolescence, warranty reserve, income tax reserves and other contingencies. | ||
Comprehensive Income (Loss) | ' | |
Comprehensive Income (Loss) | ||
Our comprehensive income (loss) is comprised of net income, foreign currency translation adjustments and unrealized gains and losses on available-for-sale marketable securities, which are charged or credited to the accumulated other comprehensive income (loss) account in stockholders' equity. | ||
Recent Accounting Developments | ' | |
Recent Accounting Developments | ||
Adopted | ||
In April 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2013-07, "Presentation of Financial Statements (Topic 205); Liquidation Basis of Accounting." The objective of this guidance is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. The amendments in this standard are effective prospectively for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Early adoption is permitted. We adopted this guidance in the third quarter of fiscal 2013. Since liquidation is not imminent, the adoption did not have an impact on our consolidated financial statements. | ||
In February 2013, the FASB issued ASU 2013-02, "Comprehensive Income (Topic 220); Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income." This updated guidance improves the reporting of significant items reclassified out of accumulated other comprehensive income and requires an entity to present, either on the face of the statement where net income is presented or in the notes, separately for each component of comprehensive income, the current period reclassifications out of accumulated other comprehensive income by the respective line items of net income affected by the reclassification. The updated guidance was effective prospectively for reporting periods beginning after December 15, 2012. We adopted this guidance beginning January 1, 2013. Other than requiring additional disclosures that are in the footnotes | ||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) | ||
to the Statements of Comprehensive Income, the adoption did not have an effect on our consolidated financial statements. | ||
In July 2012, the FASB issued ASU 2012-02, "Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment." The FASB amended its guidance on testing of indefinite-lived intangible assets for impairment. Under the amended guidance, companies may perform a qualitative assessment to determine whether further impairment testing is necessary, similar to the amended goodwill impairment testing guidance noted below. The guidance for indefinite-lived intangible assets is effective for annual and interim tests performed for fiscal years beginning after September 15, 2012, with an option for early adoption. We adopted ASU 2012-02 in the first quarter of fiscal 2013. As we do not have any indefinite-lived intangible assets, this pronouncement does not have an effect on our consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | ' | |||||||||||
The following table is a reconciliation of the numerators and denominators in the net income per common share calculations (in thousands, except per common share data): | ||||||||||||
Fiscal years ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Numerator: | ||||||||||||
Net income | $ | 5,805 | $ | 7,615 | $ | 11,019 | ||||||
Denominator: | ||||||||||||
Denominator for basic net income per common share — weighted average shares outstanding | 25,956 | 25,743 | 25,312 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options and restricted stock units | 281 | 403 | 507 | |||||||||
Denominator for diluted net income per common share — adjusted weighted average shares | 26,237 | 26,146 | 25,819 | |||||||||
Net income per common share, basic | $ | 0.22 | $ | 0.3 | $ | 0.44 | ||||||
Net income per common share, diluted | $ | 0.22 | $ | 0.29 | $ | 0.43 | ||||||
Acquisition_Business_Combinati
Acquisition Business Combinations (Tables) | 12 Months Ended | |||
Sep. 30, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Schedule of Purchase Price Allocation | ' | |||
The table below sets forth the final purchase price allocation (in thousands): | ||||
Cash, including cash in escrow | $ | 13,696 | ||
Common stock | 6,741 | |||
Total | $ | 20,437 | ||
Fair value of net tangible assets acquired | $ | 1,142 | ||
Fair value of identifiable intangible assets acquired: | ||||
Existing customer relationships | 1,400 | |||
Non-compete agreements | 1,100 | |||
Trade name | 440 | |||
Order backlog | 360 | |||
Goodwill | 17,282 | |||
Deferred tax liabilities related to identifiable intangibles | (1,287 | ) | ||
Total | $ | 20,437 | ||
Goodwill_and_other_Identifiabl1
Goodwill and other Identifiable Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Amortizable Identifiable Intangible Assets | ' | |||||||||||||||||||||||
Amortizable identifiable intangible assets, net as of September 30, 2013 and 2012 are comprised of the following (in thousands): | ||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||
Gross | Accum. | Net | Gross | Accum. | Net | |||||||||||||||||||
carrying | amort. | carrying | amort. | |||||||||||||||||||||
amount | amount | |||||||||||||||||||||||
Purchased and core technology | $ | 45,960 | $ | (44,306 | ) | $ | 1,654 | $ | 46,597 | $ | (43,639 | ) | $ | 2,958 | ||||||||||
License agreements | 2,440 | (2,440 | ) | — | 2,840 | (2,682 | ) | 158 | ||||||||||||||||
Patents and trademarks | 11,322 | (9,000 | ) | 2,322 | 10,943 | (8,469 | ) | 2,474 | ||||||||||||||||
Customer maintenance contracts | — | — | — | 700 | (700 | ) | — | |||||||||||||||||
Customer relationships | 18,954 | (14,130 | ) | 4,824 | 17,504 | (12,465 | ) | 5,039 | ||||||||||||||||
Non-compete agreements | 1,100 | (202 | ) | 898 | 1,045 | (1,045 | ) | — | ||||||||||||||||
Order backlog | 360 | (330 | ) | 30 | — | — | — | |||||||||||||||||
Total | $ | 80,136 | $ | (70,408 | ) | $ | 9,728 | $ | 79,629 | $ | (69,000 | ) | $ | 10,629 | ||||||||||
Schedule of Amortization Expense | ' | |||||||||||||||||||||||
Amortization expense for fiscal years 2013, 2012 and 2011 is as follows (in thousands): | ||||||||||||||||||||||||
Fiscal year | Total | |||||||||||||||||||||||
2013 | $ | 4,416 | ||||||||||||||||||||||
2012 | $ | 4,476 | ||||||||||||||||||||||
2011 | $ | 6,171 | ||||||||||||||||||||||
Schedule of Estimated Amortization Expense Related to Identifiable Intangible Assets | ' | |||||||||||||||||||||||
Estimated amortization expense for the next five years is as follows (in thousands): | ||||||||||||||||||||||||
Fiscal year | Total | |||||||||||||||||||||||
2014 | $ | 3,619 | ||||||||||||||||||||||
2015 | $ | 2,724 | ||||||||||||||||||||||
2016 | $ | 1,540 | ||||||||||||||||||||||
2017 | $ | 702 | ||||||||||||||||||||||
2018 | $ | 482 | ||||||||||||||||||||||
Schedule of Changes in Carrying Amount of Goodwill | ' | |||||||||||||||||||||||
The changes in the carrying amount of goodwill were (in thousands): | ||||||||||||||||||||||||
Fiscal years ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Beginning balance, October 1 | $ | 86,209 | $ | 86,012 | ||||||||||||||||||||
Acquisition of Etherios, Inc. | 17,282 | — | ||||||||||||||||||||||
Foreign currency translation adjustment | 78 | 197 | ||||||||||||||||||||||
Ending balance, September 30 | $ | 103,569 | $ | 86,209 | ||||||||||||||||||||
Segment_Information_and_Major_1
Segment Information and Major Customers (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Schedule of Revenue by Growth and Mature Categories | ' | |||||||||||
The following table presents revenue for our growth and mature categories (in thousands): | ||||||||||||
Fiscal years ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Growth hardware products and all services | $ | 110,741 | $ | 99,257 | $ | 101,565 | ||||||
Mature hardware products | 84,640 | 91,301 | 102,595 | |||||||||
Total revenue | $ | 195,381 | $ | 190,558 | $ | 204,160 | ||||||
Schedule of Revenue by Geographic Location | ' | |||||||||||
The information in the following table provides revenue by the geographic location of the customer for the fiscal years ended September 30, 2013, 2012 and 2011 (in thousands): | ||||||||||||
Fiscal years ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
North America, primarily United States | $ | 116,541 | $ | 112,398 | $ | 118,654 | ||||||
Europe, Middle East & Africa | 48,815 | 47,042 | 52,125 | |||||||||
Asia | 24,507 | 24,844 | 26,939 | |||||||||
Latin America | 5,518 | 6,274 | 6,442 | |||||||||
Total revenue | $ | 195,381 | $ | 190,558 | $ | 204,160 | ||||||
Schedule of Net Property, Equipment and Improvements by Geographical Location | ' | |||||||||||
Net property, equipment and improvements by geographic location are as follows (in thousands): | ||||||||||||
Fiscal years ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | $ | 13,321 | $ | 14,233 | $ | 14,169 | ||||||
International, primarily Europe | 589 | 924 | 1,201 | |||||||||
Total net property, equipment and improvements | $ | 13,910 | $ | 15,157 | $ | 15,370 | ||||||
Selected_Balance_Sheet_Data_Ta
Selected Balance Sheet Data (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Selected Balance Sheet Data [Abstract] | ' | |||||||
Schedule of Selected Balance Sheet Data | ' | |||||||
(in thousands) | ||||||||
As of September 30, | ||||||||
2013 | 2012 | |||||||
Accounts receivable, net: | ||||||||
Accounts receivable | $ | 27,142 | $ | 24,929 | ||||
Less allowance for doubtful accounts | 313 | 295 | ||||||
Total accounts receivable, net | $ | 26,829 | $ | 24,634 | ||||
Inventories: | ||||||||
Raw materials | $ | 21,171 | $ | 18,159 | ||||
Work in process | 224 | 428 | ||||||
Finished goods | 4,745 | 5,848 | ||||||
Total inventories | $ | 26,140 | $ | 24,435 | ||||
Property, equipment and improvements, net: | ||||||||
Land | $ | 1,800 | $ | 1,800 | ||||
Buildings | 10,522 | 10,522 | ||||||
Improvements | 3,863 | 3,763 | ||||||
Equipment | 14,989 | 14,093 | ||||||
Purchased software | 12,296 | 11,971 | ||||||
Furniture and fixtures | 2,481 | 2,595 | ||||||
Total property, equipment and improvements, gross | 45,951 | 44,744 | ||||||
Less accumulated depreciation and amortization | 32,041 | 29,587 | ||||||
Total property, equipment and improvements, net | $ | 13,910 | $ | 15,157 | ||||
Marketable_Securities_Tables
Marketable Securities (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Marketable Securities [Abstract] | ' | |||||||||||||||
Schedule of Marketable Securities | ' | |||||||||||||||
At September 30, 2013 our marketable securities were (in thousands): | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value (1) | |||||||||||||
Cost (1) | Gains | Losses | ||||||||||||||
Current marketable securities: | ||||||||||||||||
Corporate bonds | $ | 35,161 | $ | 10 | $ | (30 | ) | $ | 35,141 | |||||||
Certificates of deposit | 1,753 | — | (2 | ) | 1,751 | |||||||||||
Government municipal bonds | 10,115 | — | (1 | ) | 10,114 | |||||||||||
Current marketable securities | 47,029 | 10 | (33 | ) | 47,006 | |||||||||||
Non-current marketable securities: | ||||||||||||||||
Corporate bonds | 6,439 | — | (6 | ) | 6,433 | |||||||||||
Certificates of deposit | 11,003 | — | (47 | ) | 10,956 | |||||||||||
Non-current marketable securities | 17,442 | — | (53 | ) | 17,389 | |||||||||||
Total marketable securities | $ | 64,471 | $ | 10 | $ | (86 | ) | $ | 64,395 | |||||||
-1 | Included in amortized cost and fair value is purchased and accrued interest of $629. | |||||||||||||||
At September 30, 2012 our marketable securities were (in thousands): | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value (1) | |||||||||||||
Cost (1) | Gains | Losses | ||||||||||||||
Current marketable securities: | ||||||||||||||||
Corporate bonds | $ | 39,306 | $ | 14 | $ | (19 | ) | $ | 39,301 | |||||||
Commercial paper | 2,000 | — | — | 2,000 | ||||||||||||
Certificates of deposit | 7,262 | — | (4 | ) | 7,258 | |||||||||||
Government municipal bonds | 9,814 | 1 | (2 | ) | 9,813 | |||||||||||
Current marketable securities | 58,382 | 15 | (25 | ) | 58,372 | |||||||||||
Non-current marketable securities: | ||||||||||||||||
Corporate bonds | 2,019 | — | (3 | ) | 2,016 | |||||||||||
Total marketable securities | $ | 60,401 | $ | 15 | $ | (28 | ) | $ | 60,388 | |||||||
-1 | Included in amortized cost and fair value is purchased and accrued interest of $485. | |||||||||||||||
Schedule of Unrealized Losses on Available-for-Sale Securities | ' | |||||||||||||||
The following tables show the fair values and gross unrealized losses of our available-for-sale securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category (in thousands): | ||||||||||||||||
30-Sep-13 | ||||||||||||||||
Less than 12 Months | More than 12 Months | |||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
Corporate bonds | $ | 29,911 | $ | (35 | ) | $ | 2,001 | $ | (1 | ) | ||||||
Certificates of deposit | 12,451 | (49 | ) | — | — | |||||||||||
Government municipal bonds | 6,182 | (1 | ) | — | — | |||||||||||
Total | $ | 48,544 | $ | (85 | ) | $ | 2,001 | $ | (1 | ) | ||||||
September 30, 2012 | ||||||||||||||||
Less than 12 Months | More than 12 Months | |||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
Corporate bonds | $ | 6,246 | $ | (22 | ) | $ | — | $ | — | |||||||
Commercial paper | 2,000 | — | — | — | ||||||||||||
Certificates of deposit | 5,114 | (4 | ) | — | — | |||||||||||
Government municipal bonds | 21,143 | (2 | ) | — | — | |||||||||||
Total | $ | 34,503 | $ | (28 | ) | $ | — | $ | — | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value of Assets Measured on Recurring Basis | ' | |||||||||||||||
The following tables provide information by level for financial assets that are measured at fair value on a recurring basis (in thousands): | ||||||||||||||||
Fair Value Measurements at September 30, 2013 using: | ||||||||||||||||
Total carrying | Quoted price in | Significant other | Significant | |||||||||||||
value at | active markets | observable inputs | unobservable inputs | |||||||||||||
30-Sep-13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market | $ | 3,957 | $ | 3,957 | $ | — | $ | — | ||||||||
Available-for-sale marketable securities: | ||||||||||||||||
Corporate bonds | 41,574 | — | 41,574 | — | ||||||||||||
Certificates of deposit | 12,707 | — | 12,707 | — | ||||||||||||
Government municipal bonds | 10,114 | — | 10,114 | — | ||||||||||||
Total cash equivalents and marketable | $ | 68,352 | $ | 3,957 | $ | 64,395 | $ | — | ||||||||
securities measured at fair value | ||||||||||||||||
Fair Value Measurements at September 30, 2012 using: | ||||||||||||||||
Total carrying | Quoted price in | Significant other | Significant | |||||||||||||
value at | active markets | observable inputs | unobservable inputs | |||||||||||||
30-Sep-12 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market | $ | 28,355 | $ | 28,355 | $ | — | $ | — | ||||||||
Available-for-sale marketable securities: | ||||||||||||||||
Corporate bonds | 41,317 | — | 41,317 | — | ||||||||||||
Commercial paper | 2,000 | — | 2,000 | — | ||||||||||||
Certificates of deposit | 7,258 | — | 7,258 | — | ||||||||||||
Government municipal bonds | 9,813 | — | 9,813 | — | ||||||||||||
Total cash equivalents and marketable | $ | 88,743 | $ | 28,355 | $ | 60,388 | $ | — | ||||||||
securities measured at fair value | ||||||||||||||||
Product_Warranty_Obligation_Ta
Product Warranty Obligation (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Product Warranties Disclosures [Abstract] | ' | |||||||||||||||
Schedule of Product Warranty Accrual | ' | |||||||||||||||
The following table summarizes the activity associated with the product warranty accrual (in thousands) and is listed on our Consolidated Balance Sheets under Current Liabilities: | ||||||||||||||||
Balance at | Warranties | Settlements | Balance at | |||||||||||||
Fiscal year | 1-Oct | issued | made | September 30 | ||||||||||||
2013 | $ | 1,021 | $ | 669 | $ | (627 | ) | $ | 1,063 | |||||||
2012 | $ | 941 | $ | 730 | $ | (650 | ) | $ | 1,021 | |||||||
2011 | $ | 877 | $ | 885 | $ | (821 | ) | $ | 941 | |||||||
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
2013 Restructuring | ' | |||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||
Schedule of Restructuring Reserve | ' | |||||||||||
Below is a summary of the restructuring charges and other activity within the restructuring accrual (in thousands): | ||||||||||||
Employee | Other | Total | ||||||||||
Termination | ||||||||||||
Costs | ||||||||||||
Balance at September 30, 2012 | $ | — | $ | — | $ | — | ||||||
Restructuring charge | 350 | — | 350 | |||||||||
Balance at September 30, 2013 | $ | 350 | $ | — | $ | 350 | ||||||
2012 Restructuring [Member] | ' | |||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||
Schedule of Restructuring Reserve | ' | |||||||||||
Below is a summary of the restructuring charges and other activity within the restructuring accrual (in thousands): | ||||||||||||
Employee | Other | Total | ||||||||||
Termination | ||||||||||||
Costs | ||||||||||||
Balance at September 30, 2011 | $ | — | $ | — | $ | — | ||||||
Restructuring charge | 568 | 395 | 963 | |||||||||
Payments | (555 | ) | (287 | ) | (842 | ) | ||||||
Balance at September 30, 2012 | 13 | 108 | 121 | |||||||||
Payments | — | (84 | ) | (84 | ) | |||||||
Reversals | (13 | ) | (24 | ) | (37 | ) | ||||||
Balance at September 30, 2013 | $ | — | $ | — | $ | — | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of Components of Income Taxes | ' | |||||||||||
The components of income before income taxes are as follows (in thousands): | ||||||||||||
Fiscal years ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | $ | (395 | ) | $ | 2,808 | $ | 10,173 | |||||
International | 8,633 | 8,089 | 6,342 | |||||||||
Total income before income taxes | $ | 8,238 | $ | 10,897 | $ | 16,515 | ||||||
Schedule of Components of Income Tax Provision | ' | |||||||||||
The components of the income tax provision are as follows (in thousands): | ||||||||||||
Fiscal years ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current: | ||||||||||||
Federal | $ | 1,418 | $ | 2,203 | $ | 3,880 | ||||||
State | 263 | 400 | 342 | |||||||||
Foreign | 3,148 | 3,131 | 2,479 | |||||||||
Deferred: | ||||||||||||
U.S. | (2,270 | ) | (2,229 | ) | (776 | ) | ||||||
Foreign | (126 | ) | (223 | ) | (429 | ) | ||||||
Total income tax provision | $ | 2,433 | $ | 3,282 | $ | 5,496 | ||||||
Schedule of Net Deferred Tax Asset | ' | |||||||||||
The net deferred tax asset consists of the following (in thousands): | ||||||||||||
As of September 30, | ||||||||||||
2013 | 2012 | |||||||||||
Current deferred tax asset | $ | 3,174 | $ | 3,389 | ||||||||
Non-current deferred tax asset | 5,832 | 5,010 | ||||||||||
Current deferred tax liability | (60 | ) | (16 | ) | ||||||||
Non-current deferred tax liability | (415 | ) | (630 | ) | ||||||||
Net deferred tax asset | $ | 8,531 | $ | 7,753 | ||||||||
Uncollectible accounts and other reserves | $ | 1,138 | $ | 1,820 | ||||||||
Depreciation and amortization | 255 | 13 | ||||||||||
Inventories | 1,530 | 1,263 | ||||||||||
Compensation costs | 8,025 | 7,034 | ||||||||||
Tax carryforwards | 705 | 679 | ||||||||||
Valuation allowance | (515 | ) | (499 | ) | ||||||||
Identifiable intangible assets | (2,607 | ) | (2,557 | ) | ||||||||
Net deferred tax asset | $ | 8,531 | $ | 7,753 | ||||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||||||
The reconciliation of the statutory federal income tax rate to our effective income tax rate is as follows: | ||||||||||||
Fiscal years ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Statutory income tax rate | 34 | % | 35 | % | 35 | % | ||||||
Increase (decrease) resulting from: | ||||||||||||
State taxes, net of federal benefits | (0.4 | )% | 0.7 | % | 0.5 | % | ||||||
Utilization of tax credits | (7.3 | )% | (2.2 | )% | (1.4 | )% | ||||||
Manufacturing deduction | (0.8 | )% | 0.2 | % | (3.1 | )% | ||||||
Discrete tax benefits | (9.2 | )% | (14.1 | )% | (4.4 | )% | ||||||
Foreign operations | 2 | % | 3.7 | % | 1.1 | % | ||||||
Adjustment of tax contingency reserves | 9.7 | % | 4.9 | % | 2.6 | % | ||||||
Other, net | 1.5 | % | 1.9 | % | 3 | % | ||||||
Effective income tax rate | 29.5 | % | 30.1 | % | 33.3 | % | ||||||
Schedule of Unrecognized Tax Benefits | ' | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands): | ||||||||||||
Fiscal years ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Unrecognized tax benefits at beginning of fiscal year | $ | 2,720 | $ | 2,061 | $ | 2,265 | ||||||
Increases related to: | ||||||||||||
Prior year income tax positions | 162 | 631 | 32 | |||||||||
Current year income tax positions | 733 | 441 | 392 | |||||||||
Decreases related to: | ||||||||||||
Prior year income tax positions | — | (94 | ) | — | ||||||||
Expiration of statute of limitations | (283 | ) | (319 | ) | (628 | ) | ||||||
Unrecognized tax benefits at end of fiscal year | $ | 3,332 | $ | 2,720 | $ | 2,061 | ||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Stock-Based Compensation Expense | ' | ||||||||||||||||
Stock-based compensation expense is included in the consolidated results of operations as follows (in thousands): | |||||||||||||||||
Fiscal years ended September 30, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of sales | $ | 183 | $ | 166 | $ | 136 | |||||||||||
Sales and marketing | 1,261 | 1,271 | 1,156 | ||||||||||||||
Research and development | 772 | 724 | 771 | ||||||||||||||
General and administrative | 1,556 | 1,566 | 1,381 | ||||||||||||||
Stock-based compensation before income taxes | 3,772 | 3,727 | 3,444 | ||||||||||||||
Income tax benefit | (1,192 | ) | (1,240 | ) | (1,143 | ) | |||||||||||
Stock-based compensation after income taxes | $ | 2,580 | $ | 2,487 | $ | 2,301 | |||||||||||
Schedule of Options and Common Shares Reserved for Grant | ' | ||||||||||||||||
A summary of options and common shares reserved for grant under the Plans and Assumed Plans are as follows (in thousands, except per common share amounts): | |||||||||||||||||
Options Outstanding | Weighted Average Exercised Price | Weighted Average Contractual Term (in years) | Aggregate Intrinsic Value (1) | ||||||||||||||
Balance at September 30, 2012 | 5,754 | $10.76 | |||||||||||||||
Additional shares approved for grant | |||||||||||||||||
Granted | 1,049 | 9.33 | |||||||||||||||
Exercised | (280 | ) | 9.76 | ||||||||||||||
Cancelled | (244 | ) | 10.35 | ||||||||||||||
Balance at September 30, 2013 | 6,279 | $10.67 | 5.6 | $ | 3,152 | ||||||||||||
Exercisable at September 30, 2013 | 4,562 | $11.00 | 4.6 | $ | 2,357 | ||||||||||||
(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $9.99 as of September 30, 2013, which would have been received by the option holders had all option holders exercised their options as of that date. | |||||||||||||||||
Schedule of Valuation Assumptions | ' | ||||||||||||||||
The table below shows the weighted average fair value, which was determined based upon the fair value of each option on the grant date utilizing the Black-Scholes option-pricing model and the related assumptions: | |||||||||||||||||
Fiscal years ended September 30, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Fair value of options granted (in thousands) | $ | 3,950 | $ | 4,086 | $ | 4,948 | |||||||||||
Weighted average per option grant date fair value | $ | 3.77 | $ | 4.45 | $ | 4.14 | |||||||||||
Assumptions used for option grants: | |||||||||||||||||
Risk free interest rate | 0.88% - 1.78% | 0.84% - 1.33% | 1.58% - 2.14% | ||||||||||||||
Expected term | 6.25 years | 6.25 years | 5.25 years | ||||||||||||||
Expected volatility | 40% | 41% - 42% | 41% - 44% | ||||||||||||||
Weighted average volatility | 40% | 41% | 43% | ||||||||||||||
Expected dividend yield | 0 | 0 | 0 | ||||||||||||||
Schedule of Nonvested Stock Options | ' | ||||||||||||||||
A summary of our non-vested options as of September 30, 2013 and changes during the twelve months then ended is presented below (in thousands, except per common share amounts): | |||||||||||||||||
Number of Options | Weighted Average Grant Date Fair Value per Common Share | ||||||||||||||||
Nonvested at September 30, 2012 | 1,756 | $ | 3.58 | ||||||||||||||
Granted | 1,049 | $ | 3.77 | ||||||||||||||
Vested | (844 | ) | $ | 3.71 | |||||||||||||
Forfeited | (244 | ) | $ | 4.05 | |||||||||||||
Nonvested at September 30, 2013 | 1,717 | $ | 3.56 | ||||||||||||||
Schedule of Exercise Price Range | ' | ||||||||||||||||
At September 30, 2013, the weighted average exercise price and remaining life of the stock options are as follows (in thousands, except remaining life and exercise price): | |||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Range of Exercise Prices | Options Outstanding | Weighted Average Remaining Contractual Life (In Years) | Weighted Average Exercise Price | Number of Shares Vested | Weighted Average Exercise Price | ||||||||||||
$6.75 - $8.03 | 752 | 6.03 | $ | 8.01 | 726 | $ | 8.01 | ||||||||||
$8.04 - $9.50 | 1,312 | 7.48 | $ | 9.02 | 440 | $ | 8.49 | ||||||||||
$9.51 - $10.00 | 1,274 | 5.99 | $ | 9.68 | 905 | $ | 9.7 | ||||||||||
$10.01 - $11.00 | 1,183 | 6.15 | $ | 10.65 | 786 | $ | 10.66 | ||||||||||
$11.01 - $13.00 | 616 | 3.64 | $ | 12.36 | 594 | $ | 12.37 | ||||||||||
$13.01 - $15.00 | 656 | 2.61 | $ | 13.98 | 626 | $ | 13.95 | ||||||||||
$15.01 - $16.88 | 486 | 3.47 | $ | 15.27 | 485 | $ | 15.27 | ||||||||||
$6.75 - $16.88 | 6,279 | 5.56 | $ | 10.67 | 4,562 | $ | 11 | ||||||||||
Schedule of Nonvested Restricted Stock Units | ' | ||||||||||||||||
A summary of our non-vested restricted stock units as of September 30, 2013 and changes during the twelve months then ended is presented below (in thousands, except per common share amounts): | |||||||||||||||||
Number of Options | Weighted Average Grant Date Fair Value per Common Share | ||||||||||||||||
Nonvested at September 30, 2012 | — | $ | — | ||||||||||||||
Granted | 49 | $ | 9.71 | ||||||||||||||
Vested | — | $ | — | ||||||||||||||
Forfeited | — | $ | — | ||||||||||||||
Nonvested at September 30, 2013 | 49 | $ | 9.71 | ||||||||||||||
Commitments_Tables
Commitments (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Leases, Operating [Abstract] | ' | |||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||||||||||
The following schedule reflects future minimum rental commitments under noncancelable operating leases (in thousands): | ||||||||||||
Fiscal year | Amount | |||||||||||
2014 | $ | 2,527 | ||||||||||
2015 | 1,714 | |||||||||||
2016 | 1,072 | |||||||||||
2017 | 234 | |||||||||||
2018 | 2 | |||||||||||
Thereafter | — | |||||||||||
Total minimum payments required | $ | 5,549 | ||||||||||
Schedule of Rent Expense | ' | |||||||||||
The following schedule shows the composition of total rental expense for all operating leases for the years ended September 30 (in thousands): | ||||||||||||
Fiscal years ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Rentals | $ | 3,053 | $ | 3,093 | $ | 3,275 | ||||||
Less: sublease rentals | (31 | ) | (41 | ) | (17 | ) | ||||||
Total rental expense | $ | 3,022 | $ | 3,052 | $ | 3,258 | ||||||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Quarterly Financial Data | ' | |||||||||||||||
(in thousands, except per common share data) | ||||||||||||||||
Quarter ended | ||||||||||||||||
Dec. 31 | 31-Mar | 30-Jun | Sept. 30 | |||||||||||||
Fiscal 2013 | ||||||||||||||||
Revenue | $ | 46,991 | $ | 48,197 | $ | 48,824 | $ | 51,369 | ||||||||
Gross profit | 24,479 | 24,961 | 24,720 | 25,963 | ||||||||||||
Net income (1)(2)(3)(4) | 1,230 | 1,000 | 1,528 | 2,047 | ||||||||||||
Net income per common share - basic | 0.05 | 0.04 | 0.06 | 0.08 | ||||||||||||
Net income per common share - diluted | 0.05 | 0.04 | 0.06 | 0.08 | ||||||||||||
Fiscal 2012 | ||||||||||||||||
Revenue | $ | 46,662 | $ | 49,016 | $ | 47,632 | $ | 47,248 | ||||||||
Gross profit | 24,430 | 25,783 | 25,304 | 24,820 | ||||||||||||
Net income (1)(2) | 724 | 2,122 | 2,307 | 2,462 | ||||||||||||
Net income per common share - basic | 0.03 | 0.08 | 0.09 | 0.1 | ||||||||||||
Net income per common share - diluted | 0.03 | 0.08 | 0.09 | 0.09 | ||||||||||||
-1 | During fiscal 2013 and 2012, we recorded discrete tax benefits of $0.8 million and $1.5 million, respectively. We recorded a benefit of $0.1 million in the first quarter of fiscal 2013 resulting from the release of income tax reserves due to the expiration of the statute of limitations from various U.S. and foreign tax jurisdictions. During the second quarter of fiscal 2013, we recorded a discrete tax benefit of $0.4 million resulting from the enactment of legislation on January 2, 2013 extending the research and development credit for the last three quarters of fiscal 2012. In the third quarter of fiscal 2013, we recorded a benefit of $0.1 million for the release of income tax reserves due to the expiration of the statute of limitations for U.S. Federal income tax for fiscal 2009. In the fourth quarter of fiscal 2013, we recorded $0.2 million for the reversal of tax reserves resulting from expiration of the statute of limitations for state income taxes. | |||||||||||||||
We recorded a benefit of $0.1 million in the first quarter of fiscal 2012 resulting from the release of income tax reserves due to the expiration of the statute of limitations from various U.S. tax jurisdictions. During the third quarter of fiscal 2012, we recorded $1.1 million for additional research and development tax credits identified for fiscal years ended September 30, 2009, 2010 and 2011 from a recently completed research and development tax credit study. During the fourth quarter of fiscal 2012, we recorded $0.3 million relating to expiration of statute of limitations for state income taxes and a reduction in a foreign statutory rate. | ||||||||||||||||
-2 | During fiscal 2013, we recorded a business restructuring accrual of $0.4 million ($0.2 million after tax) in the fourth quarter of fiscal 2013. During fiscal 2012, we recorded a business restructuring accrual of $0.2 million ($0.2 million after tax) in the first quarter, $0.1 million ($0.0 million after tax) in the second quarter and $1.0 million ($0.6 million after tax) in the third quarter. | |||||||||||||||
-3 | During the second quarter of fiscal 2013, we recorded a charge of $1.5 million ($1.0 million after tax) for the settlement of a patent infringement lawsuit. | |||||||||||||||
-4 | During the fourth quarter of fiscal 2013, we recorded a charge of $0.4 million ($0.2 million after tax) for impairment of certain intangibles. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Property, Equipment and Improvements, Net) (Details) | 12 Months Ended |
Sep. 30, 2013 | |
Furniture and Fixtures | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, equipment and improvements depreciation life | '3 years |
Furniture and Fixtures | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, equipment and improvements depreciation life | '7 years |
Building Improvements and Building | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, equipment and improvements depreciation life | '10 years |
Building Improvements and Building | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, equipment and improvements depreciation life | '39 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Identifiable Intangible Assets) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Intangible impairment charge | $361 | $361 | $0 | $0 |
Minimum | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Estimated useful life | ' | '3 years | ' | ' |
Maximum | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Estimated useful life | ' | '13 years | ' | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Goodwill) (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2012 | Sep. 30, 2012 |
industry | Minimum | Maximum | ||||||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Target companies equity benchmark | ' | ' | ' | 50.00% | ' | ' | ' | ' |
Number of industries encompasses similar products | ' | ' | ' | 3 | ' | ' | ' | ' |
Control premium percent range | ' | ' | ' | ' | ' | ' | 30.00% | 45.00% |
Control premium percent | ' | ' | ' | 40.00% | ' | ' | ' | ' |
Market Capitalization | $255,300,000 | $241,400,000 | ' | $264,300,000 | ' | ' | ' | ' |
Carrying value | $274,266,000 | $272,300,000 | $270,857,000 | $265,700,000 | $260,716,000 | $240,556,000 | ' | ' |
Percent fair value in excess of carrying value of goodwill | 30.00% | 24.00% | ' | 39.00% | ' | ' | ' | ' |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Revenue Recognition) (Details) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Hardware products | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage of revenue | 88.60% | 94.70% | 94.60% |
Service | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage of revenue | 11.40% | 5.30% | 5.40% |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Net Income Per Common Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | ||||||||
Accounting Policies [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net income | $2,047 | [1],[2],[3],[4] | $1,528 | [1],[2],[3],[4] | $1,000 | [1],[2],[3],[4] | $1,230 | [1],[2],[3],[4] | $2,462 | [1],[2] | $2,307 | [1],[2] | $2,122 | [1],[2] | $724 | [1],[2] | $5,805 | $7,615 | $11,019 |
Denominator for basic net income per common share b weighted average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 25,956,000 | 25,743,000 | 25,312,000 | ||||||||
Effect of dilutive securities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Stock options and restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | 281,000 | 403,000 | 507,000 | ||||||||
Denominator for diluted net income per common share b adjusted weighted average shares | ' | ' | ' | ' | ' | ' | ' | ' | 26,237,000 | 26,146,000 | 25,819,000 | ||||||||
Net income per common share, basic (USD per share) | $0.08 | $0.06 | $0.04 | $0.05 | $0.10 | $0.09 | $0.08 | $0.03 | $0.22 | $0.30 | $0.44 | ||||||||
Net income per common share, diluted (USD per share) | $0.08 | $0.06 | $0.04 | $0.05 | $0.09 | $0.09 | $0.08 | $0.03 | $0.22 | $0.29 | $0.43 | ||||||||
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 3,939,541 | 2,023,213 | 1,831,713 | ||||||||
[1] | During fiscal 2013, we recorded a business restructuring accrual of $0.4 million ($0.2 million after tax) in the fourth quarter of fiscal 2013. During fiscal 2012, we recorded a business restructuring accrual of $0.2 million ($0.2 million after tax) in the first quarter, $0.1 million ($0.0 million after tax) in the second quarter and $1.0 million ($0.6 million after tax) in the third quarter. | ||||||||||||||||||
[2] | During fiscal 2013 and 2012, we recorded discrete tax benefits of $0.8 million and $1.5 million, respectively. We recorded a benefit of $0.1 million in the first quarter of fiscal 2013 resulting from the release of income tax reserves due to the expiration of the statute of limitations from various U.S. and foreign tax jurisdictions. During the second quarter of fiscal 2013, we recorded a discrete tax benefit of $0.4 million resulting from the enactment of legislation on January 2, 2013 extending the research and development credit for the last three quarters of fiscal 2012. In the third quarter of fiscal 2013, we recorded a benefit of $0.1 million for the release of income tax reserves due to the expiration of the statute of limitations for U.S. Federal income tax for fiscal 2009. In the fourth quarter of fiscal 2013, we recorded $0.2 million for the reversal of tax reserves resulting from expiration of the statute of limitations for state income taxes. We recorded a benefit of $0.1 million in the first quarter of fiscal 2012 resulting from the release of income tax reserves due to the expiration of the statute of limitations from various U.S. tax jurisdictions. During the third quarter of fiscal 2012, we recorded $1.1 million for additional research and development tax credits identified for fiscal years ended September 30, 2009, 2010 and 2011 from a recently completed research and development tax credit study. During the fourth quarter of fiscal 2012, we recorded $0.3 million relating to expiration of statute of limitations for state income taxes and a reduction in a foreign statutory rate. | ||||||||||||||||||
[3] | During the second quarter of fiscal 2013, we recorded a charge of $1.5 million ($1.0 million after tax) for the settlement of a patent infringement lawsuit. | ||||||||||||||||||
[4] | During the fourth quarter of fiscal 2013, we recorded a charge of $0.4 million ($0.2 million after tax) for impairment of certain intangibles. |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies (Foreign Currency Translation) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Accounting Policies [Abstract] | ' | ' | ' |
Foreign currency net transaction gain (loss) | $0.40 | ($0.40) | ($0.70) |
Acquisition_Details
Acquisition (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Oct. 31, 2012 | Sep. 30, 2013 | Oct. 31, 2012 | Oct. 31, 2012 |
Etherios, Inc | Etherios, Inc | Maximum | Common Stock | ||||
Etherios, Inc | Etherios, Inc | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Total purchase price | ' | ' | ' | $20,437,000 | ' | ' | ' |
Cash, including cash in escrow | ' | ' | ' | 13,696,000 | ' | ' | ' |
Cash acquired | ' | ' | ' | 800,000 | ' | ' | ' |
Common stock | ' | ' | ' | 6,741,000 | ' | ' | ' |
Number of shares | ' | ' | ' | ' | ' | ' | 715,571 |
Common stock issued per common share | ' | ' | ' | 9.42 | ' | ' | ' |
Amount in escrow | ' | ' | ' | 2,350,000 | ' | ' | ' |
Escrow holdback | ' | ' | ' | 300,000 | ' | ' | ' |
Escrow cash | ' | ' | ' | 2,050,000 | ' | ' | ' |
Escrow cash period | ' | ' | ' | ' | ' | '18 months | ' |
Acquisition related costs | ' | ' | ' | ' | 200,000 | ' | ' |
Goodwill | $103,569,000 | $86,209,000 | $86,012,000 | $17,282,000 | ' | ' | ' |
Acquisition_Purchase_Price_All
Acquisition Purchase Price Allocation (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | Minimum | Maximum | Etherios, Inc | Existing Customer Relationships | Existing Customer Relationships | Existing Customer Relationships | Non-compete Agreements | Trade Name | Order Backlog | |||
Etherios, Inc | Etherios, Inc | Etherios, Inc | Etherios, Inc | Etherios, Inc | Etherios, Inc | |||||||
Minimum | Maximum | |||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash, including cash in escrow | ' | ' | ' | ' | ' | $13,696 | ' | ' | ' | ' | ' | ' |
Common stock | ' | ' | ' | ' | ' | 6,741 | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | 20,437 | ' | ' | ' | ' | ' | ' |
Fair value of net tangible assets acquired | ' | ' | ' | ' | ' | 1,142 | ' | ' | ' | ' | ' | ' |
Identifiable intangible assets | ' | ' | ' | ' | ' | ' | 1,400 | ' | ' | 1,100 | 440 | 360 |
Goodwill | 103,569 | 86,209 | 86,012 | ' | ' | 17,282 | ' | ' | ' | ' | ' | ' |
Deferred tax liabilities related to identifiable intangibles | ' | ' | ' | ' | ' | -1,287 | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | $20,437 | ' | ' | ' | ' | ' | ' |
Weighted Average Useful Life | ' | ' | ' | ' | ' | '5 years 8 months 12 days | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | '3 years | '13 years | ' | ' | '6 years | '8 years | '5 years | '7 years | '1 year |
Goodwill_and_other_Identifiabl2
Goodwill and other Identifiable Intangible Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Gross carrying amount | $80,136 | $80,136 | $79,629 | ' |
Accumulated amortization | -70,408 | -70,408 | -69,000 | ' |
Net | 9,728 | 9,728 | 10,629 | ' |
Intangible impairment charge | 361 | 361 | 0 | 0 |
Purchased and Core Technology | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Gross carrying amount | 45,960 | 45,960 | 46,597 | ' |
Accumulated amortization | -44,306 | -44,306 | -43,639 | ' |
Net | 1,654 | 1,654 | 2,958 | ' |
Intangible impairment charge | 200 | ' | ' | ' |
License Agreements | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Gross carrying amount | 2,440 | 2,440 | 2,840 | ' |
Accumulated amortization | -2,440 | -2,440 | -2,682 | ' |
Net | 0 | 0 | 158 | ' |
Intangible impairment charge | 100 | ' | ' | ' |
Patents and Trademarks | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Gross carrying amount | 11,322 | 11,322 | 10,943 | ' |
Accumulated amortization | -9,000 | -9,000 | -8,469 | ' |
Net | 2,322 | 2,322 | 2,474 | ' |
Intangible impairment charge | 100 | ' | ' | ' |
Customer Maintenance Contracts | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Gross carrying amount | 0 | 0 | 700 | ' |
Accumulated amortization | 0 | 0 | -700 | ' |
Net | 0 | 0 | 0 | ' |
Customer Relationships | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Gross carrying amount | 18,954 | 18,954 | 17,504 | ' |
Accumulated amortization | -14,130 | -14,130 | -12,465 | ' |
Net | 4,824 | 4,824 | 5,039 | ' |
Non-compete Agreements | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Gross carrying amount | 1,100 | 1,100 | 1,045 | ' |
Accumulated amortization | -202 | -202 | -1,045 | ' |
Net | 898 | 898 | 0 | ' |
Order Backlog | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Gross carrying amount | 360 | 360 | 0 | ' |
Accumulated amortization | -330 | -330 | 0 | ' |
Net | $30 | $30 | $0 | ' |
Goodwill_and_other_Identifiabl3
Goodwill and other Identifiable Intangible Assets Amortization Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Amortization expense | $4,416 | $4,476 | $6,171 |
2014 | 3,619 | ' | ' |
2015 | 2,724 | ' | ' |
2016 | 1,540 | ' | ' |
2017 | 702 | ' | ' |
2018 | $482 | ' | ' |
Goodwill_and_other_Identifiabl4
Goodwill and other Identifiable Intangible Assets Goodwill (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill [Roll Forward] | ' | ' |
Beginning balance | $86,209 | $86,012 |
Acquisition of Etherios, Inc. | 17,282 | 0 |
Foreign currency translation adjustment | 78 | 197 |
Ending balance | $103,569 | $86,209 |
Segment_Information_and_Major_2
Segment Information and Major Customers (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
customer | customer | customer | customer | customer | |||||||
segment | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Total revenue | $51,369 | $48,824 | $48,197 | $46,991 | $47,248 | $47,632 | $49,016 | $46,662 | $195,381 | $190,558 | $204,160 |
Total property, equipment and improvements | 13,910 | ' | ' | ' | 15,157 | ' | ' | ' | 13,910 | 15,157 | 15,370 |
Number of customer representing over ten percent of revenue | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Number of customer representing over ten percent of consolidated accounts receivable | 1 | ' | ' | ' | 0 | ' | ' | ' | 1 | 0 | 0 |
Single customer representing over ten percent of consolidated accounts receivable, percent | 13.80% | ' | ' | ' | ' | ' | ' | ' | 13.80% | ' | ' |
North America, primarily United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | 116,541 | 112,398 | 118,654 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total property, equipment and improvements | 13,321 | ' | ' | ' | 14,233 | ' | ' | ' | 13,321 | 14,233 | 14,169 |
United States | U.S. Export Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of revenue | ' | ' | ' | ' | ' | ' | ' | ' | 41.70% | 39.60% | 37.50% |
Europe, Middle East and Africa | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | 48,815 | 47,042 | 52,125 |
Asia | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | 24,507 | 24,844 | 26,939 |
Latin America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | 5,518 | 6,274 | 6,442 |
International, primarily Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total property, equipment and improvements | 589 | ' | ' | ' | 924 | ' | ' | ' | 589 | 924 | 1,201 |
Growth hardware product and all services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | 110,741 | 99,257 | 101,565 |
Mature hardware products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | $84,640 | $91,301 | $102,595 |
Selected_Balance_Sheet_Data_De
Selected Balance Sheet Data (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
In Thousands, unless otherwise specified | |||
Accounts receivable, net: | ' | ' | ' |
Accounts receivable | $27,142 | $24,929 | ' |
Less allowance for doubtful accounts | 313 | 295 | ' |
Total accounts receivable, net | 26,829 | 24,634 | ' |
Inventories: | ' | ' | ' |
Raw materials | 21,171 | 18,159 | ' |
Work in process | 224 | 428 | ' |
Finished goods | 4,745 | 5,848 | ' |
Total Inventories | 26,140 | 24,435 | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Total property, equipment and improvements, gross | 45,951 | 44,744 | ' |
Less accumulated depreciation and amortization | 32,041 | 29,587 | ' |
Total property, equipment and improvements, net | 13,910 | 15,157 | 15,370 |
Land | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Total property, equipment and improvements, gross | 1,800 | 1,800 | ' |
Buildings | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Total property, equipment and improvements, gross | 10,522 | 10,522 | ' |
Improvements | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Total property, equipment and improvements, gross | 3,863 | 3,763 | ' |
Equipment | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Total property, equipment and improvements, gross | 14,989 | 14,093 | ' |
Purchased Software | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Total property, equipment and improvements, gross | 12,296 | 11,971 | ' |
Furniture and Fixtures | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Total property, equipment and improvements, gross | $2,481 | $2,595 | ' |
Marketable_Securities_Details
Marketable Securities (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | ||
Securities | |||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Number of securities below amortized cost basis | 72 | ' | ' | ||
Number of securities | 80 | ' | ' | ||
Proceeds from maturities of marketable securities | $63,089 | $65,533 | $44,843 | ||
Available-for-sale Securities, Amortized Cost Basis | 64,471 | [1] | 60,401 | [2] | ' |
Unrealized gains | 10 | 15 | ' | ||
Unrealized losses | -86 | -28 | ' | ||
Available-for-sale marketable securities | 64,395 | [1] | 60,388 | [2] | ' |
Purchased and accrued interest | 629 | 485 | ' | ||
Fair value of available-for-sale securities in continuous unrealized loss position for less than twelve months | 48,544 | 34,503 | ' | ||
Unrealized losses of available-for-sale securities in continuous unrealized loss position for less than twelve months | -85 | -28 | ' | ||
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 2,001 | 0 | ' | ||
Unrealized losses of available-for-sale securities in continuous unrealized loss position for twelve months or longer | -1 | 0 | ' | ||
Current Assets | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Available-for-sale securities, next twelve months, maximum year mature | '1 year | ' | ' | ||
Available-for-sale Securities, Amortized Cost Basis | 47,029 | 58,382 | ' | ||
Unrealized gains | 10 | 15 | ' | ||
Unrealized losses | -33 | -25 | ' | ||
Available-for-sale marketable securities | 47,006 | 58,372 | ' | ||
Non-current Assets | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Available-for-sale Securities, year two through five, maximum year mature | '3 years | ' | ' | ||
Available-for-sale Securities, Amortized Cost Basis | 17,442 | ' | ' | ||
Unrealized gains | 0 | ' | ' | ||
Unrealized losses | -53 | ' | ' | ||
Available-for-sale marketable securities | 17,389 | ' | ' | ||
Corporate Bonds | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Fair value of available-for-sale securities in continuous unrealized loss position for less than twelve months | 29,911 | 6,246 | ' | ||
Unrealized losses of available-for-sale securities in continuous unrealized loss position for less than twelve months | -35 | -22 | ' | ||
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 2,001 | 0 | ' | ||
Unrealized losses of available-for-sale securities in continuous unrealized loss position for twelve months or longer | -1 | 0 | ' | ||
Corporate Bonds | Current Assets | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Available-for-sale Securities, Amortized Cost Basis | 35,161 | 39,306 | ' | ||
Unrealized gains | 10 | 14 | ' | ||
Unrealized losses | -30 | -19 | ' | ||
Available-for-sale marketable securities | 35,141 | 39,301 | ' | ||
Corporate Bonds | Non-current Assets | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Available-for-sale Securities, Amortized Cost Basis | 6,439 | 2,019 | ' | ||
Unrealized gains | 0 | 0 | ' | ||
Unrealized losses | -6 | -3 | ' | ||
Available-for-sale marketable securities | 6,433 | 2,016 | ' | ||
Commercial Paper | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Fair value of available-for-sale securities in continuous unrealized loss position for less than twelve months | ' | 2,000 | ' | ||
Unrealized losses of available-for-sale securities in continuous unrealized loss position for less than twelve months | ' | 0 | ' | ||
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | ' | 0 | ' | ||
Unrealized losses of available-for-sale securities in continuous unrealized loss position for twelve months or longer | ' | 0 | ' | ||
Commercial Paper | Current Assets | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Available-for-sale Securities, Amortized Cost Basis | ' | 2,000 | ' | ||
Unrealized gains | ' | 0 | ' | ||
Unrealized losses | ' | 0 | ' | ||
Available-for-sale marketable securities | ' | 2,000 | ' | ||
Certificates of Deposit | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Fair value of available-for-sale securities in continuous unrealized loss position for less than twelve months | 12,451 | 5,114 | ' | ||
Unrealized losses of available-for-sale securities in continuous unrealized loss position for less than twelve months | -49 | -4 | ' | ||
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 0 | 0 | ' | ||
Unrealized losses of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 0 | 0 | ' | ||
Certificates of Deposit | Current Assets | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Available-for-sale Securities, Amortized Cost Basis | 1,753 | 7,262 | ' | ||
Unrealized gains | 0 | 0 | ' | ||
Unrealized losses | -2 | -4 | ' | ||
Available-for-sale marketable securities | 1,751 | 7,258 | ' | ||
Certificates of Deposit | Non-current Assets | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Available-for-sale Securities, Amortized Cost Basis | 11,003 | ' | ' | ||
Unrealized gains | 0 | ' | ' | ||
Unrealized losses | -47 | ' | ' | ||
Available-for-sale marketable securities | 10,956 | ' | ' | ||
Government Municipal Bonds | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Fair value of available-for-sale securities in continuous unrealized loss position for less than twelve months | 6,182 | 21,143 | ' | ||
Unrealized losses of available-for-sale securities in continuous unrealized loss position for less than twelve months | -1 | -2 | ' | ||
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 0 | 0 | ' | ||
Unrealized losses of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 0 | 0 | ' | ||
Government Municipal Bonds | Current Assets | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Available-for-sale Securities, Amortized Cost Basis | 10,115 | 9,814 | ' | ||
Unrealized gains | 0 | 1 | ' | ||
Unrealized losses | -1 | -2 | ' | ||
Available-for-sale marketable securities | $10,114 | $9,813 | ' | ||
[1] | Included in amortized cost and fair value is purchased and accrued interest of $629. | ||||
[2] | Included in amortized cost and fair value is purchased and accrued interest of $485 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale marketable securities | $64,395 | [1] | $60,388 | [2] |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total cash equivalents and marketable securities | 3,957 | 28,355 | ||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total cash equivalents and marketable securities | 64,395 | 60,388 | ||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total cash equivalents and marketable securities | 0 | 0 | ||
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total cash equivalents and marketable securities | 68,352 | 88,743 | ||
Money Market Funds | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | 3,957 | 28,355 | ||
Money Market Funds | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | 0 | 0 | ||
Money Market Funds | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | 0 | 0 | ||
Money Market Funds | Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | 3,957 | 28,355 | ||
Corporate Bonds | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale marketable securities | 0 | 0 | ||
Corporate Bonds | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale marketable securities | 41,574 | 41,317 | ||
Corporate Bonds | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale marketable securities | 0 | 0 | ||
Corporate Bonds | Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale marketable securities | 41,574 | 41,317 | ||
Commercial Paper | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale marketable securities | ' | 0 | ||
Commercial Paper | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale marketable securities | ' | 2,000 | ||
Commercial Paper | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale marketable securities | ' | 0 | ||
Commercial Paper | Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale marketable securities | ' | 2,000 | ||
Certificates of Deposit | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale marketable securities | 0 | 0 | ||
Certificates of Deposit | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale marketable securities | 12,707 | 7,258 | ||
Certificates of Deposit | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale marketable securities | 0 | 0 | ||
Certificates of Deposit | Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale marketable securities | 12,707 | 7,258 | ||
Government Municipal Bonds | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale marketable securities | 0 | 0 | ||
Government Municipal Bonds | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale marketable securities | 10,114 | 9,813 | ||
Government Municipal Bonds | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale marketable securities | 0 | 0 | ||
Government Municipal Bonds | Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale marketable securities | $10,114 | $9,813 | ||
[1] | Included in amortized cost and fair value is purchased and accrued interest of $629. | |||
[2] | Included in amortized cost and fair value is purchased and accrued interest of $485 |
Product_Warranty_Obligation_De
Product Warranty Obligation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Product Warranties Disclosures [Abstract] | ' | ' | ' |
Warranty period, minimum | '1 year | ' | ' |
Warranty period, maximum | '5 years | ' | ' |
Standard Product Warranty Accrual [Roll Forward] | ' | ' | ' |
Beginning balance | $1,021 | $941 | $877 |
Warranties issued | 669 | 730 | 885 |
Settlements made | -627 | -650 | -821 |
Ending balance | $1,063 | $1,021 | $941 |
Restructuring_2013_Restructuri
Restructuring 2013 Restructuring (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 27, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 27, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
2013 Restructuring | 2013 Restructuring | 2013 Restructuring | 2013 Restructuring | 2013 Restructuring | 2013 Restructuring | 2013 Restructuring | 2013 Restructuring | 2013 Restructuring | ||||||||
employees | Employee Termination Costs | Employee Termination Costs | Employee Termination Costs | Other | Other | Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees eliminated | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | ' | ' | ' | ' | ' | $350 | $0 | ' | $350 | $0 | ' | $0 | $0 |
Restructuring charge | 400 | 1,000 | 100 | 200 | 313 | 1,259 | 154 | 350 | ' | ' | 350 | ' | ' | 0 | ' | ' |
Ending Balance | ' | ' | ' | ' | ' | ' | ' | ' | $350 | $0 | ' | $350 | $0 | ' | $0 | $0 |
Restructuring_2012_Restructuri
Restructuring 2012 Restructuring (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Apr. 26, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
2012 Restructuring [Member] | 2012 Restructuring [Member] | 2012 Restructuring [Member] | 2012 Restructuring [Member] | 2012 Restructuring [Member] | 2012 Restructuring [Member] | 2012 Restructuring [Member] | ||||||||
employees | Employee Termination Costs | Employee Termination Costs | Other | Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees eliminated | ' | ' | ' | ' | ' | ' | ' | 30 | ' | ' | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | ' | ' | ' | ' | ' | $121 | $0 | $13 | $0 | $108 | $0 |
Restructuring charge | 400 | 1,000 | 100 | 200 | 313 | 1,259 | 154 | ' | ' | 963 | ' | 568 | ' | 395 |
Payments | ' | ' | ' | ' | ' | ' | ' | ' | -84 | -842 | 0 | -555 | -84 | -287 |
Reversals | ' | ' | ' | ' | ' | ' | ' | ' | -37 | ' | -13 | ' | -24 | ' |
Ending Balance | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $121 | $0 | $13 | $0 | $108 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation allowance | $515,000 | ' | ' | ' | $499,000 | ' | ' | $515,000 | $499,000 | ' |
Discrete tax benefit | 200,000 | 100,000 | 400,000 | 100,000 | 300,000 | 1,100,000 | 100,000 | 800,000 | 1,500,000 | 700,000 |
Percentage points that reduced effective tax rate | ' | ' | ' | ' | ' | ' | ' | -9.2 | -14.1 | -4.4 |
Income tax penalties and interest accrued | 600,000 | ' | ' | ' | 600,000 | ' | ' | 600,000 | 600,000 | ' |
Accumulated undistributed foreign earnings | 24,400,000 | ' | ' | ' | ' | ' | ' | 24,400,000 | ' | ' |
Foreign Tax Authority | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax credit carryforward | 200,000 | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' |
Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated unrecognized deferred tax liability | 1,500,000 | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' |
Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated unrecognized deferred tax liability | $2,500,000 | ' | ' | ' | ' | ' | ' | $2,500,000 | ' | ' |
Income_Taxes_Income_Taxes_Deta
Income Taxes (Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
United States | ($395) | $2,808 | $10,173 |
International | 8,633 | 8,089 | 6,342 |
Income before income taxes | $8,238 | $10,897 | $16,515 |
Income_Taxes_Income_Tax_Provis
Income Taxes (Income Tax Provision) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Current: | ' | ' | ' |
Federal | $1,418 | $2,203 | $3,880 |
State | 263 | 400 | 342 |
Foreign | 3,148 | 3,131 | 2,479 |
Deferred: | ' | ' | ' |
U.S. | -2,270 | -2,229 | -776 |
Foreign | -126 | -223 | -429 |
Total income tax provision | $2,433 | $3,282 | $5,496 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Current deferred tax asset | $3,174 | $3,389 |
Non-current deferred tax asset | 5,832 | 5,010 |
Current deferred tax liability | -60 | -16 |
Non-current deferred tax liability | -415 | -630 |
Net deferred tax asset | 8,531 | 7,753 |
Uncollectible accounts and other reserves | 1,138 | 1,820 |
Depreciation and amortization | 255 | 13 |
Inventories | 1,530 | 1,263 |
Compensation costs | 8,025 | 7,034 |
Tax carryforwards | 705 | 679 |
Valuation allowance | -515 | -499 |
Indentifiable intangible assets | ($2,607) | ($2,557) |
Income_Taxes_Effective_Income_
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Statutory income tax rate | 34.00% | 35.00% | 35.00% |
State taxes, net of federal benefits | -0.40% | 0.70% | 0.50% |
Utilization of tax credits | -7.30% | -2.20% | -1.40% |
Manufacturing deduction | -0.80% | 0.20% | -3.10% |
Discrete tax benefits | -9.20% | -14.10% | -4.40% |
Foreign operations | 2.00% | 3.70% | 1.10% |
Adjustment of tax contingency reserves | 9.70% | 4.90% | 2.60% |
Other, net | 1.50% | 1.90% | 3.00% |
Effective income tax rate | 29.50% | 30.10% | 33.30% |
Income_Taxes_Unrecognized_Tax_
Income Taxes (Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Unrecognized tax benefits, beginning balance | $2,720,000 | $2,061,000 | $2,265,000 |
Increases related to prior year income tax positions | 162,000 | 631,000 | 32,000 |
Increases related to current year income tax positions | 733,000 | 441,000 | 392,000 |
Decreases related to prior year income tax positions | 0 | -94,000 | 0 |
Decreases related to expiration of statute of limitations | -283,000 | -319,000 | -628,000 |
Unrecognized tax benefits, ending balance | 3,332,000 | 2,720,000 | 2,061,000 |
Unrecognized tax benefits that would impact effective tax rate | 3,400,000 | ' | ' |
Expected decrease in unrecognized tax benefits, minimum | 200,000 | ' | ' |
Expected decrease in unrecognized tax benefits, minimum | $300,000 | ' | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Jan. 25, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jan. 28, 2013 | Jan. 25, 2010 | Dec. 04, 2009 | |
The Purchase Plan | The Purchase Plan | The Purchase Plan | The Purchase Plan | Stock Options | Restricted Stock Units | The Stock Option Plan and Non-Officer Plan | The Incentive Plan | The Incentive Plan | The Omnibus Plan | The Omnibus Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' |
Expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' |
Number of shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,750,000 | ' | 5,750,000 |
Number of shares available for future grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' |
Number of additional shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' |
Proceeds from stock option plan transactions | $2,193,000 | $1,072,000 | $2,853,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess tax benefits from stock-based compensation | -67,000 | -198,000 | -796,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of continuous days of service | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of hours per week employed | ' | ' | ' | '20 hours | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount from market price | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Offering period | ' | ' | ' | '3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of additional shares authorized | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' |
Employee contributions | ' | ' | ' | 1,000,000 | 1,000,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares issued to employees | ' | ' | ' | 128,853 | 115,477 | 112,285 | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for future issuance | ' | ' | ' | 70,827 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of all options exercised | 500,000 | 700,000 | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeiture rate | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost nonvested awards | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' |
Total grant date fair value of shares vested | 3,100,000 | 3,000,000 | 3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period, unrecognized compensation cost, nonvested awards | ' | ' | ' | ' | ' | ' | ' | '2 years 6 months 3 days | '0 years 11 months 4 days | ' | ' | ' | ' | ' |
Total unrecognized compensation cost, restricted stock units | $300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_StockB
Stock-Based Compensation (Stock-Based Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation before income taxes | $3,772 | $3,727 | $3,444 |
Income tax benefit | -1,192 | -1,240 | -1,143 |
Stock-based compensation after income taxes | 2,580 | 2,487 | 2,301 |
Cost of Sales | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation before income taxes | 183 | 166 | 136 |
Selling and Marketing | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation before income taxes | 1,261 | 1,271 | 1,156 |
Research and Development | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation before income taxes | 772 | 724 | 771 |
General and Administrative | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation before income taxes | $1,556 | $1,566 | $1,381 |
StockBased_Compensation_Option
Stock-Based Compensation (Options and Common Shares Reserved for Grant) (Details) (Stock Options, USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | |
Stock Options | ' | |
Options Outstanding [Roll Forward] | ' | |
Options Outstanding, Beginning Balance | 5,754 | |
Options Outstanding, Granted | 1,049 | |
Options Outstanding, Exercised | -280 | |
Options Outstanding, Cancelled | -244 | |
Options Outstanding, Ending Balance | 6,279 | |
Options Outstanding, Exercisable | 4,562 | |
Weighted Average Exercise Price [Roll Forward] | ' | |
Weighted Average Exercise Price, Beginning Balance | $10.76 | |
Weighted Average Exercise Price, Granted | $9.33 | |
Weighted Average Exercise Price, Exercised | $9.76 | |
Weighted Average Exercise Price, Cancelled | $10.35 | |
Weighted Average Exercise Price, Ending Balance | $10.67 | |
Weighted Average Exercise Price, Exercisable | $11 | |
Weighted Average Remaining Contractual Term [Abstract] | ' | |
Weighted Average Remaining Contractual Term | '5 years 7 months 6 days | |
Weighted Average Remaining Contractual Term, Exercisable | '4 years 7 months 13 days | |
Aggregate Intrinsic Value [Abstract] | ' | |
Aggregate Intrinsic Value | $3,152 | [1] |
Aggregate Intrinsic Value, Exercisable | $2,357 | [1] |
Closing Stock Price | $9.99 | |
[1] | The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $9.99 as of SeptemberB 30, 2013, which would have been received by the option holders had all option holders exercised their options as of that date. |
StockBased_Compensation_Fair_V
Stock-Based Compensation (Fair Value Assumptions) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Fair value of options granted (in thousands) | $3,950 | $4,086 | $4,948 |
Weighted average per option grant date fair value | $3.77 | $4.45 | $4.14 |
Assumptions Used For Options Grants [Abstract] | ' | ' | ' |
Risk free interest rate, minimum | 0.88% | 8.40% | 1.58% |
Risk free interest rate, maximum | 1.78% | 1.33% | 2.14% |
Expected term | '6 years 3 months | '6 years 3 months | '5 years 3 months |
Expected volatility rate, minimum | 40.00% | 41.00% | 41.00% |
Expected volatility rate, maximum | ' | 42.00% | 44.00% |
Weighted average volatility | 40.00% | 41.00% | 43.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
StockBased_Compensation_NonVes
Stock-Based Compensation (Non-Vested Options) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Nonvested Options, Weighted Average Grant Date Fair Value per Common Share [Roll Forward] | ' | ' | ' |
Weighted average per option grant date fair value | $3.77 | $4.45 | $4.14 |
Stock Options | ' | ' | ' |
Nonvested Number Of Options [Roll Forward] | ' | ' | ' |
Number of Options, Beginning Balance | 1,756 | ' | ' |
Number of Options, Granted | 1,049 | ' | ' |
Number of Options, Vested | -844 | ' | ' |
Number of Options, Forfeited | -244 | ' | ' |
Number of Options, Ending Balance | 1,717 | ' | ' |
Nonvested Options, Weighted Average Grant Date Fair Value per Common Share [Roll Forward] | ' | ' | ' |
Weighted Average Grant Date Fair Value per Common Share, Beginning Balance | $3.58 | ' | ' |
Weighted average per option grant date fair value | $3.77 | ' | ' |
Weighted Average Grant Date Fair Value per Common Share, Vested | $3.71 | ' | ' |
Weighted Average Grant Date Fair Value per Common Share, Forfeited | $4.05 | ' | ' |
Weighted Average Grant Date Fair Value per Common Share, Ending Balance | $3.56 | ' | ' |
Restricted Stock Units | ' | ' | ' |
Nonvested Number of Restricted Stock Units [Roll Forward] | ' | ' | ' |
Number of Restricted Stock Units, Beginning Balance | 0 | ' | ' |
Number of Restricted Stock Units, Granted | 49 | ' | ' |
Number of Restricted Stock Units, Vested | 0 | ' | ' |
Number of Restricted Stock Units, Forfeited | 0 | ' | ' |
Number of Restricted Stock Units, Ending Balance | 49 | ' | ' |
Nonvested Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share [Roll Forward] | ' | ' | ' |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Beginning Balance | $0 | ' | ' |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Granted | $9.71 | ' | ' |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested | $0 | ' | ' |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Forfeited | $0 | ' | ' |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance | $9.71 | ' | ' |
StockBased_Compensation_Exerci
Stock-Based Compensation (Exercise Price Range) (Details) (Stock Options, USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
$6.75 - $8.03 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Range, Lower Range | $6.75 |
Exercise Price Range, Upper Range | $8.03 |
Options Outstanding | 752 |
Weighted Average Remaining Contractual Term | '6 years 10 days |
Weighted Average Exercise Price, Options Outstanding | $8.01 |
Number of Shares Vested, Options Exercisable | 726 |
Weighted Average Exercise Price, Options Exercisable | $8.01 |
$8.04 - $9.50 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Range, Lower Range | $8.04 |
Exercise Price Range, Upper Range | $9.50 |
Options Outstanding | 1,312 |
Weighted Average Remaining Contractual Term | '7 years 5 months 23 days |
Weighted Average Exercise Price, Options Outstanding | $9.02 |
Number of Shares Vested, Options Exercisable | 440 |
Weighted Average Exercise Price, Options Exercisable | $8.49 |
$9.51 - $10.00 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Range, Lower Range | $9.51 |
Exercise Price Range, Upper Range | $10 |
Options Outstanding | 1,274 |
Weighted Average Remaining Contractual Term | '5 years 11 months 26 days |
Weighted Average Exercise Price, Options Outstanding | $9.68 |
Number of Shares Vested, Options Exercisable | 905 |
Weighted Average Exercise Price, Options Exercisable | $9.70 |
$10.01 - $11.00 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Range, Lower Range | $10.01 |
Exercise Price Range, Upper Range | $11 |
Options Outstanding | 1,183 |
Weighted Average Remaining Contractual Term | '6 years 1 month 24 days |
Weighted Average Exercise Price, Options Outstanding | $10.65 |
Number of Shares Vested, Options Exercisable | 786 |
Weighted Average Exercise Price, Options Exercisable | $10.66 |
$11.01 - $13.00 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Range, Lower Range | $11.01 |
Exercise Price Range, Upper Range | $13 |
Options Outstanding | 616 |
Weighted Average Remaining Contractual Term | '3 years 7 months 20 days |
Weighted Average Exercise Price, Options Outstanding | $12.36 |
Number of Shares Vested, Options Exercisable | 594 |
Weighted Average Exercise Price, Options Exercisable | $12.37 |
$13.01 - $15.00 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Range, Lower Range | $13.01 |
Exercise Price Range, Upper Range | $15 |
Options Outstanding | 656 |
Weighted Average Remaining Contractual Term | '2 years 7 months 9 days |
Weighted Average Exercise Price, Options Outstanding | $13.98 |
Number of Shares Vested, Options Exercisable | 626 |
Weighted Average Exercise Price, Options Exercisable | $13.95 |
$15.01 - $16.88 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Range, Lower Range | $15.01 |
Exercise Price Range, Upper Range | $16.88 |
Options Outstanding | 486 |
Weighted Average Remaining Contractual Term | '3 years 5 months 19 days |
Weighted Average Exercise Price, Options Outstanding | $15.27 |
Number of Shares Vested, Options Exercisable | 485 |
Weighted Average Exercise Price, Options Exercisable | $15.27 |
$6.75 - $16.88 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Range, Lower Range | $6.75 |
Exercise Price Range, Upper Range | $16.88 |
Options Outstanding | 6,279 |
Weighted Average Remaining Contractual Term | '5 years 6 months 21 days |
Weighted Average Exercise Price, Options Outstanding | $10.67 |
Number of Shares Vested, Options Exercisable | 4,562 |
Weighted Average Exercise Price, Options Exercisable | $11 |
Common_Stock_Repurchase_Detail
Common Stock Repurchase (Details) (USD $) | 0 Months Ended | 12 Months Ended |
Jul. 25, 2012 | Sep. 30, 2013 | |
Equity, Class of Treasury Stock [Line Items] | ' | ' |
Repurchase of common stock | ' | $14,058,000 |
Common Stock | ' | ' |
Equity, Class of Treasury Stock [Line Items] | ' | ' |
Authorized amount under share repurchase program | 20,000,000 | ' |
Repurchase of common stock (in shares) | ' | 1,481,365 |
Repurchase of common stock | ' | $14,100,000 |
Share_Rights_Plan_Details
Share Rights Plan (Details) (Series A Junior Participating Preferred Stock [Member]) | Sep. 30, 2013 |
Series A Junior Participating Preferred Stock [Member] | ' |
Class of Warrant or Right [Line Items] | ' |
Amount of shares eligible to buy | 0.01 |
Exercise price | 60 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Deferred Compensation Arrangement With Individual Post Retirement Benefits [Line Items] | ' | ' | ' |
Maximum annual contribution per employee percentage | 25.00% | ' | ' |
Matching contributions, amount | $1.40 | $1.30 | $1.30 |
Full Employer Match [Member] | ' | ' | ' |
Deferred Compensation Arrangement With Individual Post Retirement Benefits [Line Items] | ' | ' | ' |
Employers percent of matching contributions | 100.00% | ' | ' |
Percent of employees' gross pay for employer match | 3.00% | ' | ' |
Half Employer Match [Member] | ' | ' | ' |
Deferred Compensation Arrangement With Individual Post Retirement Benefits [Line Items] | ' | ' | ' |
Employers percent of matching contributions | 50.00% | ' | ' |
Percent of employees' gross pay for employer match | 2.00% | ' | ' |
Commitments_Details
Commitments (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Leases, Operating [Abstract] | ' |
2014 | $2,527 |
2015 | 1,714 |
2016 | 1,072 |
2017 | 234 |
2018 | 2 |
Thereafter | 0 |
Total minimum payments required | $5,549 |
Commitments_Rent_Expense_Detai
Commitments (Rent Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Leases, Operating [Abstract] | ' | ' | ' |
Rentals | $3,053 | $3,093 | $3,275 |
Less: sublease rentals | -31 | -41 | -17 |
Total rental expense | $3,022 | $3,052 | $3,258 |
Contingencies_Details
Contingencies (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | |||
Mar. 31, 2013 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2012 | Mar. 31, 2013 | Apr. 22, 2013 | Oct. 23, 2012 | |
Dismissed Claims [Member] | Inital Public Offering Securities Litigation [Member] | Inital Public Offering Securities Litigation [Member] | Inital Public Offering Securities Litigation [Member] | Patent Infringement [Member] | Patent Infringement [Member] | ||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Damages paid by insurance | ' | ' | $337,838 | ' | ' | ' | ' |
Reversal of accrued liability | ' | ' | ' | 300,000 | ' | ' | ' |
Related receivable | ' | ' | ' | 50,000 | ' | ' | ' |
Estimated settlement | ' | ' | ' | ' | 300,000 | ' | ' |
Insurance deductible | ' | ' | ' | ' | 250,000 | ' | ' |
Litigation Settlement (charge) | 1,500,000 | ' | ' | ' | ' | 1,500,000 | 500,000 |
Litigation settlement amount (charge), net of tax | 1,000,000 | ' | ' | ' | ' | 1,000,000 | ' |
Litigation settlement amount, impact on diluted earnings per share | ' | ' | ' | ' | ' | $0.04 | ' |
Damages sought for recovery | ' | $300,000 | ' | ' | ' | ' | ' |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Total revenue | $51,369,000 | $48,824,000 | $48,197,000 | $46,991,000 | $47,248,000 | $47,632,000 | $49,016,000 | $46,662,000 | $195,381,000 | $190,558,000 | $204,160,000 | ||||||||
Gross profit | 25,963,000 | 24,720,000 | 24,961,000 | 24,479,000 | 24,820,000 | 25,304,000 | 25,783,000 | 24,430,000 | 100,123,000 | 100,337,000 | 106,588,000 | ||||||||
Net income | 2,047,000 | [1],[2],[3],[4] | 1,528,000 | [1],[2],[3],[4] | 1,000,000 | [1],[2],[3],[4] | 1,230,000 | [1],[2],[3],[4] | 2,462,000 | [1],[2] | 2,307,000 | [1],[2] | 2,122,000 | [1],[2] | 724,000 | [1],[2] | 5,805,000 | 7,615,000 | 11,019,000 |
Net income per common share, basic (USD per share) | $0.08 | $0.06 | $0.04 | $0.05 | $0.10 | $0.09 | $0.08 | $0.03 | $0.22 | $0.30 | $0.44 | ||||||||
Net income per common share, diluted (USD per share) | $0.08 | $0.06 | $0.04 | $0.05 | $0.09 | $0.09 | $0.08 | $0.03 | $0.22 | $0.29 | $0.43 | ||||||||
Discrete tax benefit [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Discrete tax benefit | 200,000 | 100,000 | 400,000 | 100,000 | 300,000 | 1,100,000 | ' | 100,000 | 800,000 | 1,500,000 | 700,000 | ||||||||
Restructuring Charges [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring charge | 400,000 | ' | ' | ' | ' | 1,000,000 | 100,000 | 200,000 | 313,000 | 1,259,000 | 154,000 | ||||||||
Restructuring accrual, net of tax | 200,000 | ' | ' | ' | ' | 600,000 | 0 | 200,000 | ' | ' | ' | ||||||||
Litigation Settlement [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Litigation Settlement (charge) | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Litigation settlement amount (charge), net of tax | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Impairment of Intangible Assets (Excluding Goodwill) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Intangible impairment charge | 361,000 | ' | ' | ' | ' | ' | ' | ' | 361,000 | 0 | 0 | ||||||||
Intangible impairment charge, net of taxes | $200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
[1] | During fiscal 2013, we recorded a business restructuring accrual of $0.4 million ($0.2 million after tax) in the fourth quarter of fiscal 2013. During fiscal 2012, we recorded a business restructuring accrual of $0.2 million ($0.2 million after tax) in the first quarter, $0.1 million ($0.0 million after tax) in the second quarter and $1.0 million ($0.6 million after tax) in the third quarter. | ||||||||||||||||||
[2] | During fiscal 2013 and 2012, we recorded discrete tax benefits of $0.8 million and $1.5 million, respectively. We recorded a benefit of $0.1 million in the first quarter of fiscal 2013 resulting from the release of income tax reserves due to the expiration of the statute of limitations from various U.S. and foreign tax jurisdictions. During the second quarter of fiscal 2013, we recorded a discrete tax benefit of $0.4 million resulting from the enactment of legislation on January 2, 2013 extending the research and development credit for the last three quarters of fiscal 2012. In the third quarter of fiscal 2013, we recorded a benefit of $0.1 million for the release of income tax reserves due to the expiration of the statute of limitations for U.S. Federal income tax for fiscal 2009. In the fourth quarter of fiscal 2013, we recorded $0.2 million for the reversal of tax reserves resulting from expiration of the statute of limitations for state income taxes. We recorded a benefit of $0.1 million in the first quarter of fiscal 2012 resulting from the release of income tax reserves due to the expiration of the statute of limitations from various U.S. tax jurisdictions. During the third quarter of fiscal 2012, we recorded $1.1 million for additional research and development tax credits identified for fiscal years ended September 30, 2009, 2010 and 2011 from a recently completed research and development tax credit study. During the fourth quarter of fiscal 2012, we recorded $0.3 million relating to expiration of statute of limitations for state income taxes and a reduction in a foreign statutory rate. | ||||||||||||||||||
[3] | During the second quarter of fiscal 2013, we recorded a charge of $1.5 million ($1.0 million after tax) for the settlement of a patent infringement lawsuit. | ||||||||||||||||||
[4] | During the fourth quarter of fiscal 2013, we recorded a charge of $0.4 million ($0.2 million after tax) for impairment of certain intangibles. |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||
Sep. 30, 2013 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Oct. 31, 2013 | Jul. 25, 2012 | Oct. 29, 2013 | |
Subsequent Event | Common Stock | Common Stock | ||||||||
Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized amount under share repurchase program | ' | ' | ' | ' | ' | ' | ' | ' | $20,000,000 | $20,000,000 |
Number of employees eliminated | ' | ' | ' | ' | ' | ' | ' | 40 | ' | ' |
Restructuring charge | $400,000 | $1,000,000 | $100,000 | $200,000 | $313,000 | $1,259,000 | $154,000 | $200,000 | ' | ' |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||
Valuation Account - Doubtful Accounts | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of period | $295 | $339 | $549 | |||
Increase (Decrease) to costs and expenses | 309 | 418 | -96 | |||
Deductions | 291 | [1] | 462 | [1] | 114 | [1] |
Balance at end of period | 313 | 295 | 339 | |||
Reserve for Future Returns and Pricing Adjustments | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of period | 1,362 | 1,280 | 1,106 | |||
Increase (Decrease) to costs and expenses | 6,973 | 4,881 | 5,156 | |||
Deductions | 6,565 | 4,799 | 4,982 | |||
Balance at end of period | $1,770 | $1,362 | $1,280 | |||
[1] | Uncollectible accounts charged against allowance, net of recoveries |