Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
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-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 25,373,025 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Revenue: | ' | ' | ' | ' |
Hardware product revenue | $40,560 | $43,111 | $82,549 | $86,154 |
Service revenue | 5,322 | 5,086 | 10,655 | 9,034 |
Total revenue | 45,882 | 48,197 | 93,204 | 95,188 |
Cost of sales: | ' | ' | ' | ' |
Cost of hardware product | 20,012 | 20,122 | 40,275 | 40,248 |
Cost of service | 4,090 | 3,114 | 8,241 | 5,500 |
Total cost of sales | 24,102 | 23,236 | 48,516 | 45,748 |
Gross profit | 21,780 | 24,961 | 44,688 | 49,440 |
Operating expenses: | ' | ' | ' | ' |
Sales and marketing | 10,399 | 10,414 | 20,618 | 20,688 |
Research and development | 7,411 | 7,775 | 14,668 | 15,192 |
General and administrative | 4,619 | 6,390 | 9,342 | 11,506 |
Restructuring (reversal) charges, net | 0 | -37 | 81 | -37 |
Total operating expenses | 22,429 | 24,542 | 44,709 | 47,349 |
Operating (loss) income | -649 | 419 | -21 | 2,091 |
Other income, net: | ' | ' | ' | ' |
Interest income | 50 | 50 | 93 | 102 |
Interest expense | -1 | -37 | -1 | -37 |
Other income, net | 21 | 438 | 114 | 562 |
Total other income, net | 70 | 451 | 206 | 627 |
(Loss) income before income taxes | -579 | 870 | 185 | 2,718 |
Income tax (benefit) provision | -1,317 | -130 | -1,241 | 488 |
Net income | $738 | $1,000 | $1,426 | $2,230 |
Net income per common share: | ' | ' | ' | ' |
Basic (USD per share) | $0.03 | $0.04 | $0.06 | $0.09 |
Diluted (USD per share) | $0.03 | $0.04 | $0.05 | $0.08 |
Weighted average common shares: | ' | ' | ' | ' |
Basic (shares) | 25,644 | 26,138 | 25,680 | 26,163 |
Diluted (shares) | 26,144 | 26,476 | 26,189 | 26,474 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Net income | $738 | $1,000 | $1,426 | $2,230 |
Foreign currency translation adjustment | -181 | -3,090 | 162 | -3,379 |
Change in net unrealized gain (loss) on investments | 26 | -61 | 64 | -59 |
Less income tax (provision) benefit | -10 | 24 | -25 | 23 |
Other comprehensive (loss) income, net of tax | -165 | -3,127 | 201 | -3,415 |
Comprehensive income (loss) | $573 | ($2,127) | $1,627 | ($1,185) |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $43,557 | $41,320 |
Marketable securities | 45,035 | 47,006 |
Accounts receivable, net | 25,900 | 26,829 |
Inventories | 30,592 | 26,140 |
Deferred tax assets | 3,435 | 3,174 |
Other | 5,261 | 4,835 |
Total current assets | 153,780 | 149,304 |
Marketable securities, long-term | 10,804 | 17,389 |
Property, equipment and improvements, net | 13,673 | 13,910 |
Identifiable intangible assets, net | 8,309 | 9,728 |
Goodwill | 104,045 | 103,569 |
Deferred tax assets | 6,520 | 5,832 |
Other | 419 | 221 |
Total assets | 297,550 | 299,953 |
Current liabilities: | ' | ' |
Accounts payable | 9,114 | 8,906 |
Accrued compensation | 6,198 | 7,410 |
Accrued warranty | 972 | 1,063 |
Other | 2,725 | 3,911 |
Total current liabilities | 19,009 | 21,290 |
Income taxes payable | 2,387 | 3,903 |
Deferred tax liabilities | 330 | 415 |
Other noncurrent liabilities | 124 | 79 |
Total liabilities | 21,850 | 25,687 |
Contingencies (see Note 10) | ' | ' |
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; 30,604,591 and 30,264,224 shares issued | 306 | 303 |
Additional paid-in capital | 216,657 | 211,982 |
Retained earnings | 117,514 | 116,088 |
Accumulated other comprehensive loss | -15,389 | -15,590 |
Treasury stock, at cost, 5,177,923 and 4,708,965 shares | -43,388 | -38,517 |
Total stockholders' equity | 275,700 | 274,266 |
Total liabilities and stockholders' equity | $297,550 | $299,953 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
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 | 30,604,591 | 30,264,224 |
Treasury stock, shares | 5,177,923 | 4,708,965 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating activities: | ' | ' |
Net income | $1,426 | $2,230 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation of property, equipment and improvements | 1,828 | 1,705 |
Amortization of identifiable intangible assets | 1,891 | 2,204 |
Stock-based compensation | 2,070 | 1,914 |
Excess tax benefits from stock-based compensation | -44 | -53 |
Deferred income tax benefit | -1,065 | -1,079 |
Bad debt/product return (recovery) provision | -151 | 285 |
Inventory obsolescence | 409 | 554 |
Restructuring charges (reversal), net | 81 | -37 |
Other | 46 | -307 |
Changes in operating assets and liabilities (net of acquisition) | -9,681 | -4,066 |
Net cash (used in) provided by operating activities | -3,190 | 3,350 |
Investing activities: | ' | ' |
Purchase of marketable securities | -5,157 | -37,337 |
Proceeds from maturities of marketable securities | 13,778 | 38,161 |
Acquisition of business, net of cash acquired | 0 | -12,919 |
Purchase of property, equipment, improvements and certain other intangible assets | -1,921 | -2,080 |
Net cash provided by (used in) investing activities | 6,700 | -14,175 |
Financing activities: | ' | ' |
Excess tax benefits from stock-based compensation | 44 | 53 |
Proceeds from stock option plan transactions | 3,209 | 590 |
Proceeds from employee stock purchase plan transactions | 561 | 248 |
Purchases of common stock | -5,416 | -6,765 |
Net cash used in financing activities | -1,602 | -5,874 |
Effect of exchange rate changes on cash and cash equivalents | 329 | -1,190 |
Net increase (decrease) in cash and cash equivalents | 2,237 | -17,889 |
Cash and cash equivalents, beginning of period | 41,320 | 60,246 |
Cash and cash equivalents, end of period | 43,557 | 42,357 |
Supplemental schedule of non-cash investing activities: | ' | ' |
Issuance of common stock for business acquisition | $0 | $6,804 |
Basis_of_Presentation_of_Unaud
Basis of Presentation of Unaudited Interim Condensed Consolidated Financial Statements and Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANTACCOUNTING POLICIES | ' |
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | |
The interim unaudited condensed consolidated financial statements included in this Form 10-Q have been prepared by Digi International Inc. (the “Company,” “Digi,” “we,” “our,” or “us”) pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures, normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto, including (but not limited to) the summary of significant accounting policies, presented in our Annual Report on Form 10-K for the year ended September 30, 2013 as filed with the SEC (“2013 Financial Statements”). | |
The condensed consolidated financial statements presented herein reflect, in the opinion of management, all adjustments which consist only of normal, recurring adjustments necessary for a fair statement of the condensed consolidated balance sheets and condensed consolidated statements of operations, comprehensive income (loss) and cash flows for the periods presented. The condensed consolidated results of operations for any interim period are not necessarily indicative of results for the full year. The year-end condensed consolidated balance sheet data were derived from our 2013 Consolidated Financial Statements, but do not include all disclosures required by U.S. GAAP. | |
Changes in Presentation | |
Beginning with our 2013 Financial Statements, 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 for any period presented. | |
Recently Issued Accounting Pronouncements | |
Not Adopted | |
In July 2013, the Financial Accounting Standards Board (“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 relates to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The standard update provides that a liability related to an unrecognized tax benefit should be offset against same jurisdiction deferred tax assets for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. This guidance 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. While we are evaluating the impact of the adoption of ASU 2013-11, we do not currently expect it to have a material impact on our consolidated financial statements. | |
In March 2013, 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 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. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||||
EARNINGS PER 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. | ||||||||||||||||
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): | ||||||||||||||||
Three months ended March 31, | Six months ended March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 738 | $ | 1,000 | $ | 1,426 | $ | 2,230 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic net income per common share — weighted average shares outstanding | 25,644 | 26,138 | 25,680 | 26,163 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options and restricted stock units | 500 | 338 | 509 | 311 | ||||||||||||
Denominator for diluted net income per common share — adjusted weighted average shares | 26,144 | 26,476 | 26,189 | 26,474 | ||||||||||||
Net income per common share, basic | $ | 0.03 | $ | 0.04 | $ | 0.06 | $ | 0.09 | ||||||||
Net income per common share, diluted | $ | 0.03 | $ | 0.04 | $ | 0.05 | $ | 0.08 | ||||||||
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 common share. This is because the options’ exercise prices were greater than the average market price of our common shares. There were 3,347,082 and 2,627,905 potentially dilutive shares related to such stock options for the three and six month periods ended March 31, 2014, respectively. For both the three and six months ended March 31, 2013, there were 3,127,682 potentially dilutive shares related to such stock options. |
Acquisition
Acquisition | 6 Months Ended |
Mar. 31, 2014 | |
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 released to the sellers in February 2013 as there were no changes to the closing balance sheet. An additional $2.05 million was 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 escrow agent released the funds being held in escrow on April 30, 2014. The escrowed amounts were included in the determination of the purchase consideration on the date of acquisition as management expected that the representation and warranty matters was determinable beyond a reasonable doubt. | |
The purchase price was allocated to the estimated fair value of assets acquired and liabilities assumed. During the fourth quarter of fiscal 2013, we recorded final purchase accounting entries that reduced the value of the common stock issued by $0.1 million to reflect the closing price on the date of the acquisition and we reduced the fair value of the net tangible assets acquired by $0.3 million. These adjustments resulted in an increase of $0.2 million in goodwill. The final purchase price allocation resulted in the recognition of $17.3 million of goodwill. 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 the relationship with salesforce.com is important to us, it was not an exclusive relationship and required Etherios to compete with others for business opportunities. Accordingly, we determined that this relationship could not be valued as a separate intangible asset of Etherios and as a result was a component of goodwill. As salesforce.com has | |
3. ACQUISITION (CONTINUED) | |
signaled its intent for the Service Cloud to be used as a means to monitor machines, the acquisition of Etherios likely would further enhance our solutions offerings and provide another channel for revenue of our networking products. | |
Costs related to the acquisition, which included legal, accounting and valuation fees, in the amount of $0.2 million were charged directly to operations and were included in general and administrative expense in our consolidated statement of operations for fiscal 2013. | |
Etherios’ operating results were 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 reflected the allocation of the purchase price to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. | |
Because the Etherios acquisition was not material to our consolidated results of operations or financial position, pro forma financial information was not presented. |
Selected_Balance_Sheet_Data
Selected Balance Sheet Data | 6 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Selected Balance Sheet Data [Abstract] | ' | |||||||
SELECTED BALANCE SHEET DATA | ' | |||||||
SELECTED BALANCE SHEET DATA | ||||||||
(in thousands) | ||||||||
March 31, 2014 | September 30, 2013 | |||||||
Accounts receivable, net: | ||||||||
Accounts receivable | $ | 26,010 | $ | 27,142 | ||||
Less allowance for doubtful accounts | 110 | 313 | ||||||
$ | 25,900 | $ | 26,829 | |||||
Inventories: | ||||||||
Raw materials | $ | 25,177 | $ | 21,171 | ||||
Work in process | 203 | 224 | ||||||
Finished goods | 5,212 | 4,745 | ||||||
$ | 30,592 | $ | 26,140 | |||||
Inventories are stated at the lower of cost or market value, with cost determined using the first-in, first-out method. |
Marketable_Securities
Marketable Securities | 6 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Marketable Securities [Abstract] | ' | |||||||||||||||
MARKETABLE SECURITIES | ' | |||||||||||||||
MARKETABLE SECURITIES | ||||||||||||||||
Our marketable securities consist of certificates of deposit, 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 based on factors such as: (a) whether we have the intent to sell the security, (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 obtain relevant information from our investment advisor and, if warranted, also may review the financial solvency of certain security issuers. As of March 31, 2014, 34 of our 72 securities that we held 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. During the three months ended March 31, 2014 and 2013, we received proceeds from our available-for-sale marketable securities of $6.7 million and $20.7 million, respectively. During the six months ended March 31, 2014 and 2013, we received proceeds from our available-for-sale marketable securities of $13.8 million and $38.2 million, respectively. | ||||||||||||||||
5. MARKETABLE SECURITIES (CONTINUED) | ||||||||||||||||
At March 31, 2014 our marketable securities were (in thousands): | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value (1) | |||||||||||||
Cost (1) | Gains | Losses | ||||||||||||||
Current marketable securities: | ||||||||||||||||
Corporate bonds | $ | 36,180 | $ | 10 | $ | (24 | ) | $ | 36,166 | |||||||
Certificates of deposit | 2,752 | — | — | 2,752 | ||||||||||||
Government municipal bonds | 6,116 | 1 | — | 6,117 | ||||||||||||
Current marketable securities | 45,048 | 11 | (24 | ) | 45,035 | |||||||||||
Non-current marketable securities: | ||||||||||||||||
Corporate bonds | 2,050 | — | (8 | ) | 2,042 | |||||||||||
Certificates of deposit | 8,752 | 15 | (5 | ) | 8,762 | |||||||||||
Non-current marketable securities | 10,802 | 15 | (13 | ) | 10,804 | |||||||||||
Total marketable securities | $ | 55,850 | $ | 26 | $ | (37 | ) | $ | 55,839 | |||||||
-1 | Included in amortized cost and fair value is purchased and accrued interest of $583. | |||||||||||||||
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. | |||||||||||||||
5. MARKETABLE SECURITIES (CONTINUED) | ||||||||||||||||
The following tables show the fair values and gross unrealized losses of our available-for-sale marketable securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category (in thousands): | ||||||||||||||||
31-Mar-14 | ||||||||||||||||
Less than 12 Months | More than 12 Months | |||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
Corporate bonds | $ | 21,587 | $ | (24 | ) | $ | 10,730 | $ | (8 | ) | ||||||
Certificates of deposit | 2,998 | (2 | ) | 747 | (3 | ) | ||||||||||
Total | $ | 24,585 | $ | (26 | ) | $ | 11,477 | $ | (11 | ) | ||||||
September 30, 2013 | ||||||||||||||||
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 | ) | ||||||
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
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. | |||||||||||||||
6. FAIR VALUE MEASUREMENTS (CONTINUED) | ||||||||||||||||
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. | ||||||||||||||||
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 | ||||||||||||||||
March 31, 2014 using: | ||||||||||||||||
Total carrying | Quoted price in | Significant other | Significant | |||||||||||||
value at | active markets | observable inputs | unobservable inputs | |||||||||||||
31-Mar-14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market | $ | 9,673 | $ | 9,673 | $ | — | $ | — | ||||||||
Available-for-sale marketable securities: | ||||||||||||||||
Corporate bonds | 38,208 | — | 38,208 | — | ||||||||||||
Certificates of deposit | 11,514 | — | 11,514 | — | ||||||||||||
Government municipal bonds | 6,117 | — | 6,117 | — | ||||||||||||
Total cash equivalents and marketable securities | $ | 65,512 | $ | 9,673 | $ | 55,839 | $ | — | ||||||||
measured at fair value | ||||||||||||||||
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 securities | $ | 68,352 | $ | 3,957 | $ | 64,395 | $ | — | ||||||||
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 into or out of our Level 2 financial assets during the six months ended March 31, 2014. | ||||||||||||||||
We had no financial assets valued with Level 3 inputs as of March 31, 2014 nor did we purchase or sell any Level 3 financial assets during the six months ended March 31, 2014. | ||||||||||||||||
The use of different assumptions, applying different judgment to matters that inherently are 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. |
Goodwill_and_Other_Identifiabl
Goodwill and Other Identifiable Intangible Assets, Net | 6 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET | ' | |||||||||||||||||||||||
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET | ||||||||||||||||||||||||
Amortizable identifiable intangible assets were (in thousands): | ||||||||||||||||||||||||
March 31, 2014 | September 30, 2013 | |||||||||||||||||||||||
Gross | Accum. | Net | Gross | Accum. | Net | |||||||||||||||||||
carrying | amort. | carrying | amort. | |||||||||||||||||||||
amount | amount | |||||||||||||||||||||||
Purchased and core technology | $ | 46,169 | $ | (44,937 | ) | $ | 1,232 | $ | 45,960 | $ | (44,306 | ) | $ | 1,654 | ||||||||||
License agreements | 2,440 | (2,440 | ) | — | 2,440 | (2,440 | ) | — | ||||||||||||||||
Patents and trademarks | 11,755 | (9,546 | ) | 2,209 | 11,322 | (9,000 | ) | 2,322 | ||||||||||||||||
Customer relationships | 19,097 | (15,017 | ) | 4,080 | 18,954 | (14,130 | ) | 4,824 | ||||||||||||||||
Non-compete agreements | 1,100 | (312 | ) | 788 | 1,100 | (202 | ) | 898 | ||||||||||||||||
Order backlog | 360 | (360 | ) | — | 360 | (330 | ) | 30 | ||||||||||||||||
Total | $ | 80,921 | $ | (72,612 | ) | $ | 8,309 | $ | 80,136 | $ | (70,408 | ) | $ | 9,728 | ||||||||||
Amortization expense was $0.9 million and $1.1 million for the three month periods ended March 31, 2014 and 2013, respectively. Amortization expense was $1.9 million and $2.2 million for the six month periods ended March 31, 2014 and 2013, respectively. Amortization expense is recorded on our consolidated statements of operations within cost of sales and in general and administrative expense. | ||||||||||||||||||||||||
Estimated amortization expense related to identifiable intangible assets for the remainder of fiscal 2014 and the five succeeding fiscal years is (in thousands): | ||||||||||||||||||||||||
2014 six months | $ | 1,704 | ||||||||||||||||||||||
2015 | 3,078 | |||||||||||||||||||||||
2016 | 1,545 | |||||||||||||||||||||||
2017 | 839 | |||||||||||||||||||||||
2018 | 482 | |||||||||||||||||||||||
2019 | 438 | |||||||||||||||||||||||
The changes in the carrying amount of goodwill are (in thousands): | ||||||||||||||||||||||||
Six months ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Beginning balance, October 1 | $ | 103,569 | $ | 86,209 | ||||||||||||||||||||
Acquisition of Etherios, Inc. | — | 17,120 | ||||||||||||||||||||||
Foreign currency translation adjustment | 476 | 62 | ||||||||||||||||||||||
Ending balance, December 31 | $ | 104,045 | $ | 103,391 | ||||||||||||||||||||
The goodwill related to the acquisition of Etherios is not tax deductible. Etherios is included in our single reporting unit for purposes of goodwill impairment testing. | ||||||||||||||||||||||||
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. | ||||||||||||||||||||||||
Our test for potential goodwill impairment is a two-step approach. We estimate the fair value for our one reporting unit by comparing its fair value (market capitalization plus control premium) to our carrying value. If the carrying value of the reporting unit exceeds its estimated fair value, the second step of the goodwill impairment analysis requires us to measure the amount of the impairment loss. An impairment loss is calculated by comparing the implied fair value of the goodwill to its carrying amount. To calculate the implied fair value of goodwill, the fair value of the reporting unit’s assets and liabilities, | ||||||||||||||||||||||||
7. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET (CONTINUED) | ||||||||||||||||||||||||
excluding goodwill, is estimated. The excess of the fair value of the reporting unit over the amount assigned to its assets and liabilities, excluding goodwill, is the implied fair value of the reporting unit’s goodwill. | ||||||||||||||||||||||||
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% (discussed in the paragraphs below) 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. | ||||||||||||||||||||||||
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), | ||||||||||||||||||||||||
•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 percent to 45 percent. We reviewed the data provided and estimated that a 40 percent 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 percent 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 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 for our June 2013 impairment assessment and that the 40 percent 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 the economic conditions in June 2013. | ||||||||||||||||||||||||
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 revenues 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 identified no goodwill impairment losses since the adoption of Accounting Standards Codification (ASC) 350, Intangibles-Goodwill and Others, in fiscal 2003. |
Income_Taxes
Income Taxes | 6 Months Ended | |||
Mar. 31, 2014 | ||||
Income Tax Disclosure [Abstract] | ' | |||
INCOME TAXES | ' | |||
INCOME TAXES | ||||
Income taxes have been provided at an overall effective rate of (671.1)% and 18.0% for the six month periods ended March 31, 2014 and 2013, respectively. In the first six months of fiscal 2014 we recognized discrete income tax benefits of $1.3 million which reduced our effective tax rate by 714.0 percentage points. We recognized a discrete income tax benefit of $1.1 million related to the re-measurement and reversal of certain income tax reserves as a result of the conclusion in March 2014 of a federal income tax audit for fiscal 2012. We also recorded a discrete tax benefit of $0.2 million for the release of income tax reserves due to the expiration of statutes of limitation from U.S. and foreign tax jurisdictions in the first quarter of fiscal 2014. During the first half of fiscal 2014, the income tax provision before discrete tax benefits was higher than the federal statutory rate primarily due to reserves for unrecognized tax benefits and state income taxes, in excess of domestic tax benefits. | ||||
8. INCOME TAXES (CONTINUED) | ||||
In the second quarter of fiscal 2013 we recorded a discrete tax benefit of $0.4 million relating 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. In the first quarter of fiscal 2013 we recorded a discrete tax benefit of $0.1 million for the release of income tax reserves due to the expiration of statutes of limitation from U.S. and foreign tax jurisdictions. These discrete tax benefits reduced our effective tax rate by 19.1 percentage points for the six month period ended March 31, 2013. | ||||
Our effective tax rate will vary based on a variety of factors, including overall profitability, the geographical mix of income before taxes and related statutory tax rate in each jurisdiction, and discrete events, such as settlements of audits. | ||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands): | ||||
Unrecognized tax benefits as of September 30, 2013 | $ | 3,332 | ||
Decreases related to: | ||||
Prior year income tax positions | (1,060 | ) | ||
Settlements | (94 | ) | ||
Expiration of statute of limitations | (160 | ) | ||
Unrecognized tax benefits as of March 31, 2014 | $ | 2,018 | ||
The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate is $2.0 million. We expect an insignificant change in the total amounts of unrecognized tax benefits over the next 12 months. | ||||
We recognize interest and penalties related to income tax matters in income tax expense. During both the six month periods ended March 31, 2014 and 2013, there were insignificant amounts of interest and penalties related to income tax matters in income tax expense. Accrued interest and penalties related to unrecognized tax benefits were $0.4 million at March 31, 2014 and $0.6 million at September 30, 2013. Our long-term income taxes payable on our condensed consolidated balance sheets includes these accrued interest and penalties in addition to the unrecognized tax benefits in the table above. | ||||
At March 31, 2014, we had approximately $25.7 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 to do so, if we change our assertion that we do not intend to repatriate additional undistributed foreign earnings for cash requirements in the United States, 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. | ||||
We operate in multiple tax jurisdictions, including the U.S. and other jurisdictions 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, except for certain refund claims applicable to fiscal 2009, in the case of U.S. federal tax authorities and prior to fiscal 2008 for non-U.S. income tax authorities. The federal income tax audit for fiscal 2012 was settled during the second quarter of fiscal 2014. For state taxing authorities, most notably in Minnesota, California and Texas, we are no longer subject to income tax examination for tax years generally before fiscal 2009. |
Product_Warranty_Obligation
Product Warranty Obligation | 6 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Product Warranties Disclosures [Abstract] | ' | |||||||||||||||
PRODUCT WARRANTY OBLIGATION | ' | |||||||||||||||
PRODUCT WARRANTY OBLIGATION | ||||||||||||||||
In general, we warrant our 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 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. | ||||||||||||||||
9. PRODUCT WARRANTY OBLIGATION (CONTINUED) | ||||||||||||||||
The following table summarizes the activity associated with the product warranty accrual (in thousands) and is included on our Condensed Consolidated Balance Sheets as its own line item within current liabilities: | ||||||||||||||||
Balance at | Warranties | Settlements | Balance at | |||||||||||||
Period | 1-Jan | issued | made | March 31 | ||||||||||||
Three months ended March 31, 2014 | $ | 1,013 | $ | 176 | $ | (217 | ) | $ | 972 | |||||||
Three months ended March 31, 2013 | $ | 935 | $ | 103 | $ | (113 | ) | $ | 925 | |||||||
Balance at | Warranties | Settlements | Balance at | |||||||||||||
Period | 1-Oct | issued | made | March 31 | ||||||||||||
Six months ended March 31, 2014 | $ | 1,063 | $ | 322 | $ | (413 | ) | $ | 972 | |||||||
Six months ended March 31, 2013 | $ | 1,021 | $ | 153 | $ | (249 | ) | $ | 925 | |||||||
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. |
Contingencies
Contingencies | 6 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
CONTINGENCIES | ' |
CONTINGENCIES | |
Patent Infringement Lawsuits | |
On May 29, 2012, U.S. Ethernet Innovations, LLC (“USEI”) 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 Condensed Consolidated Statement of Operations during the second quarter of fiscal 2013. The settlement was paid during the third quarter of fiscal 2013. The settlement fully resolved 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. | |
In addition to the matter discussed above, in the normal course of business, we are subject to various claims and litigation. There can be no assurance that any claims by third parties, if proven to have merit, will not materially adversely affect our business, liquidity or financial condition. |
Restructuring
Restructuring | 6 Months Ended | |||
Mar. 31, 2014 | ||||
Restructuring and Related Activities [Abstract] | ' | |||
RESTRUCTURING | ' | |||
RESTRUCTURING | ||||
Fiscal 2014 Restructuring | ||||
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 recorded a restructuring charge of $0.2 million related to severance during the first quarter of fiscal 2014. The majority of this severance was paid during the first quarter of fiscal 2014. No additional charges are expected with this restructuring. | ||||
Fiscal 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 were completed during the first quarter of fiscal 2014. | ||||
Fiscal 2012 Restructuring | ||||
On April 26, 2012, we announced our intention to restructure certain of our operations. We recorded a $1.0 million restructuring charge. The restructuring related 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 of 30 employees at a cost of $0.6 million for severance. We also incurred expenses from vacating facilities in | ||||
11. RESTRUCTURING (CONTINUED) | ||||
Davis, California and Huntington Beach, California at a cost of approximately $0.4 million. The payments associated with these charges and all the actions associated with the restructuring were completed during the second quarter of fiscal 2013. | ||||
Below is a summary of the restructuring charges and other activity within the restructuring accrual during the first six months of fiscal 2014 related to both the fiscal 2013 restructuring and the fiscal 2014 restructuring (in thousands): | ||||
Employee | ||||
Termination | ||||
Costs | ||||
Balance at September 30, 2013 | $ | 350 | ||
Restructuring charge | 152 | |||
Payments | (428 | ) | ||
Reversals | (71 | ) | ||
Balance at March 31, 2014 | $ | 3 | ||
Basis_of_Presentation_of_Unaud1
Basis of Presentation of Unaudited Interim Condensed Consolidated Financial Statements and Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Changes in Presentation | ' |
Changes in Presentation | |
Beginning with our 2013 Financial Statements, 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 for any period presented. | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
Not Adopted | |
In July 2013, the Financial Accounting Standards Board (“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 relates to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The standard update provides that a liability related to an unrecognized tax benefit should be offset against same jurisdiction deferred tax assets for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. This guidance 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. While we are evaluating the impact of the adoption of ASU 2013-11, we do not currently expect it to have a material impact on our consolidated financial statements. | |
In March 2013, 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 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. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Earnings Per Share [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): | ||||||||||||||||
Three months ended March 31, | Six months ended March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 738 | $ | 1,000 | $ | 1,426 | $ | 2,230 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic net income per common share — weighted average shares outstanding | 25,644 | 26,138 | 25,680 | 26,163 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options and restricted stock units | 500 | 338 | 509 | 311 | ||||||||||||
Denominator for diluted net income per common share — adjusted weighted average shares | 26,144 | 26,476 | 26,189 | 26,474 | ||||||||||||
Net income per common share, basic | $ | 0.03 | $ | 0.04 | $ | 0.06 | $ | 0.09 | ||||||||
Net income per common share, diluted | $ | 0.03 | $ | 0.04 | $ | 0.05 | $ | 0.08 | ||||||||
Selected_Balance_Sheet_Data_Ta
Selected Balance Sheet Data (Tables) | 6 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Selected Balance Sheet Data [Abstract] | ' | |||||||
Schedule of Selected Balance Sheet Data | ' | |||||||
(in thousands) | ||||||||
March 31, 2014 | September 30, 2013 | |||||||
Accounts receivable, net: | ||||||||
Accounts receivable | $ | 26,010 | $ | 27,142 | ||||
Less allowance for doubtful accounts | 110 | 313 | ||||||
$ | 25,900 | $ | 26,829 | |||||
Inventories: | ||||||||
Raw materials | $ | 25,177 | $ | 21,171 | ||||
Work in process | 203 | 224 | ||||||
Finished goods | 5,212 | 4,745 | ||||||
$ | 30,592 | $ | 26,140 | |||||
Marketable_Securities_Tables
Marketable Securities (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Marketable Securities [Abstract] | ' | |||||||||||||||
Schedule of Marketable Securities | ' | |||||||||||||||
At March 31, 2014 our marketable securities were (in thousands): | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value (1) | |||||||||||||
Cost (1) | Gains | Losses | ||||||||||||||
Current marketable securities: | ||||||||||||||||
Corporate bonds | $ | 36,180 | $ | 10 | $ | (24 | ) | $ | 36,166 | |||||||
Certificates of deposit | 2,752 | — | — | 2,752 | ||||||||||||
Government municipal bonds | 6,116 | 1 | — | 6,117 | ||||||||||||
Current marketable securities | 45,048 | 11 | (24 | ) | 45,035 | |||||||||||
Non-current marketable securities: | ||||||||||||||||
Corporate bonds | 2,050 | — | (8 | ) | 2,042 | |||||||||||
Certificates of deposit | 8,752 | 15 | (5 | ) | 8,762 | |||||||||||
Non-current marketable securities | 10,802 | 15 | (13 | ) | 10,804 | |||||||||||
Total marketable securities | $ | 55,850 | $ | 26 | $ | (37 | ) | $ | 55,839 | |||||||
-1 | Included in amortized cost and fair value is purchased and accrued interest of $583. | |||||||||||||||
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. | |||||||||||||||
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 marketable securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category (in thousands): | ||||||||||||||||
31-Mar-14 | ||||||||||||||||
Less than 12 Months | More than 12 Months | |||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
Corporate bonds | $ | 21,587 | $ | (24 | ) | $ | 10,730 | $ | (8 | ) | ||||||
Certificates of deposit | 2,998 | (2 | ) | 747 | (3 | ) | ||||||||||
Total | $ | 24,585 | $ | (26 | ) | $ | 11,477 | $ | (11 | ) | ||||||
September 30, 2013 | ||||||||||||||||
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 | ) | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
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 | ||||||||||||||||
March 31, 2014 using: | ||||||||||||||||
Total carrying | Quoted price in | Significant other | Significant | |||||||||||||
value at | active markets | observable inputs | unobservable inputs | |||||||||||||
31-Mar-14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market | $ | 9,673 | $ | 9,673 | $ | — | $ | — | ||||||||
Available-for-sale marketable securities: | ||||||||||||||||
Corporate bonds | 38,208 | — | 38,208 | — | ||||||||||||
Certificates of deposit | 11,514 | — | 11,514 | — | ||||||||||||
Government municipal bonds | 6,117 | — | 6,117 | — | ||||||||||||
Total cash equivalents and marketable securities | $ | 65,512 | $ | 9,673 | $ | 55,839 | $ | — | ||||||||
measured at fair value | ||||||||||||||||
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 securities | $ | 68,352 | $ | 3,957 | $ | 64,395 | $ | — | ||||||||
measured at fair value | ||||||||||||||||
Goodwill_and_Other_Identifiabl1
Goodwill and Other Identifiable Intangible Assets, Net (Tables) | 6 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Amortizable Identifiable Intangible Assets | ' | |||||||||||||||||||||||
Amortizable identifiable intangible assets were (in thousands): | ||||||||||||||||||||||||
March 31, 2014 | September 30, 2013 | |||||||||||||||||||||||
Gross | Accum. | Net | Gross | Accum. | Net | |||||||||||||||||||
carrying | amort. | carrying | amort. | |||||||||||||||||||||
amount | amount | |||||||||||||||||||||||
Purchased and core technology | $ | 46,169 | $ | (44,937 | ) | $ | 1,232 | $ | 45,960 | $ | (44,306 | ) | $ | 1,654 | ||||||||||
License agreements | 2,440 | (2,440 | ) | — | 2,440 | (2,440 | ) | — | ||||||||||||||||
Patents and trademarks | 11,755 | (9,546 | ) | 2,209 | 11,322 | (9,000 | ) | 2,322 | ||||||||||||||||
Customer relationships | 19,097 | (15,017 | ) | 4,080 | 18,954 | (14,130 | ) | 4,824 | ||||||||||||||||
Non-compete agreements | 1,100 | (312 | ) | 788 | 1,100 | (202 | ) | 898 | ||||||||||||||||
Order backlog | 360 | (360 | ) | — | 360 | (330 | ) | 30 | ||||||||||||||||
Total | $ | 80,921 | $ | (72,612 | ) | $ | 8,309 | $ | 80,136 | $ | (70,408 | ) | $ | 9,728 | ||||||||||
Schedule of Estimated Amortization Expense Related to Identifiable Intangible Assets | ' | |||||||||||||||||||||||
Estimated amortization expense related to identifiable intangible assets for the remainder of fiscal 2014 and the five succeeding fiscal years is (in thousands): | ||||||||||||||||||||||||
2014 six months | $ | 1,704 | ||||||||||||||||||||||
2015 | 3,078 | |||||||||||||||||||||||
2016 | 1,545 | |||||||||||||||||||||||
2017 | 839 | |||||||||||||||||||||||
2018 | 482 | |||||||||||||||||||||||
2019 | 438 | |||||||||||||||||||||||
Schedule of Changes in Carrying Amount of Goodwill | ' | |||||||||||||||||||||||
The changes in the carrying amount of goodwill are (in thousands): | ||||||||||||||||||||||||
Six months ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Beginning balance, October 1 | $ | 103,569 | $ | 86,209 | ||||||||||||||||||||
Acquisition of Etherios, Inc. | — | 17,120 | ||||||||||||||||||||||
Foreign currency translation adjustment | 476 | 62 | ||||||||||||||||||||||
Ending balance, December 31 | $ | 104,045 | $ | 103,391 | ||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | |||
Mar. 31, 2014 | ||||
Income Tax Disclosure [Abstract] | ' | |||
Schedule of Unrecognized Tax Benefits | ' | |||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands): | ||||
Unrecognized tax benefits as of September 30, 2013 | $ | 3,332 | ||
Decreases related to: | ||||
Prior year income tax positions | (1,060 | ) | ||
Settlements | (94 | ) | ||
Expiration of statute of limitations | (160 | ) | ||
Unrecognized tax benefits as of March 31, 2014 | $ | 2,018 | ||
Product_Warranty_Obligation_Ta
Product Warranty Obligation (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
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 included on our Condensed Consolidated Balance Sheets as its own line item within current liabilities: | ||||||||||||||||
Balance at | Warranties | Settlements | Balance at | |||||||||||||
Period | 1-Jan | issued | made | March 31 | ||||||||||||
Three months ended March 31, 2014 | $ | 1,013 | $ | 176 | $ | (217 | ) | $ | 972 | |||||||
Three months ended March 31, 2013 | $ | 935 | $ | 103 | $ | (113 | ) | $ | 925 | |||||||
Balance at | Warranties | Settlements | Balance at | |||||||||||||
Period | 1-Oct | issued | made | March 31 | ||||||||||||
Six months ended March 31, 2014 | $ | 1,063 | $ | 322 | $ | (413 | ) | $ | 972 | |||||||
Six months ended March 31, 2013 | $ | 1,021 | $ | 153 | $ | (249 | ) | $ | 925 | |||||||
Restructuring_Tables
Restructuring (Tables) | 6 Months Ended | |||
Mar. 31, 2014 | ||||
Restructuring and Related Activities [Abstract] | ' | |||
Schedule of Restructuring Reserve | ' | |||
Below is a summary of the restructuring charges and other activity within the restructuring accrual during the first six months of fiscal 2014 related to both the fiscal 2013 restructuring and the fiscal 2014 restructuring (in thousands): | ||||
Employee | ||||
Termination | ||||
Costs | ||||
Balance at September 30, 2013 | $ | 350 | ||
Restructuring charge | 152 | |||
Payments | (428 | ) | ||
Reversals | (71 | ) | ||
Balance at March 31, 2014 | $ | 3 | ||
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $738 | $1,000 | $1,426 | $2,230 |
Denominator for basic net income per common share b weighted average shares outstanding | 25,644,000 | 26,138,000 | 25,680,000 | 26,163,000 |
Effect of dilutive securities: | ' | ' | ' | ' |
Stock options and restricted stock units | 500,000 | 338,000 | 509,000 | 311,000 |
Denominator for diluted net income per common share b adjusted weighted average shares | 26,144,000 | 26,476,000 | 26,189,000 | 26,474,000 |
Net income per common share, basic (USD per share) | $0.03 | $0.04 | $0.06 | $0.09 |
Net income per common share, diluted (USD per share) | $0.03 | $0.04 | $0.05 | $0.08 |
Antidilutive securities excluded from computation of earnings per share | 3,347,082 | 3,127,682 | 2,627,905 | 3,127,682 |
Acquisition_Details
Acquisition (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Oct. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2012 | Oct. 31, 2012 |
Etherios [Member] | Etherios [Member] | Etherios [Member] | Maximum [Member] | Common Stock [Member] | |||||
Etherios [Member] | Etherios [Member] | ||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase price | ' | ' | ' | ' | $20,400,000 | ' | ' | ' | ' |
Cash, including cash in escrow | ' | ' | ' | ' | 13,700,000 | ' | ' | ' | ' |
Cash acquired | ' | ' | ' | ' | 800,000 | ' | ' | ' | ' |
Common stock | ' | ' | ' | ' | 6,700,000 | ' | ' | ' | ' |
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 | ' |
Common stock purchase accounting adjustment | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' |
Net tangible assets purchase accounting adjustment | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' |
Goodwill purchase accounting adjustment | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' |
Goodwill | 104,045,000 | 103,569,000 | 103,391,000 | 86,209,000 | ' | 17,300,000 | 17,300,000 | ' | ' |
Acquisition related costs | ' | ' | ' | ' | ' | ' | $200,000 | ' | ' |
Selected_Balance_Sheet_Data_De
Selected Balance Sheet Data (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Accounts receivable, net: | ' | ' |
Accounts receivable | $26,010 | $27,142 |
Less allowance for doubtful accounts | 110 | 313 |
Accounts receivable, net | 25,900 | 26,829 |
Inventories: | ' | ' |
Raw materials | 25,177 | 21,171 |
Work in process | 203 | 224 |
Finished goods | 5,212 | 4,745 |
Inventories | $30,592 | $26,140 |
Marketable_Securities_Details
Marketable Securities (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 | |||
Securities | Securities | |||||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Number of securities below amortized cost basis | 34 | ' | 34 | ' | ' | |||
Number of securities | 72 | ' | 72 | ' | ' | |||
Proceeds from maturities of marketable securities | $6,700 | $20,700 | $13,778 | $38,161 | ' | |||
Available-for-sale securities, amortized cost basis | 55,850 | [1] | ' | 55,850 | [1] | ' | 64,471 | [2] |
Available-for-sale securities, unrealized gains | 26 | ' | 26 | ' | 10 | |||
Available-for-sale debt securities, unrealized losses | -37 | ' | -37 | ' | -86 | |||
Available-for-sale marketable securities, fair value | 55,839 | [1] | ' | 55,839 | [1] | ' | 64,395 | [2] |
Purchased and accrued interest | 583 | ' | 583 | ' | 629 | |||
Fair value of available-for-sale securities in continuous unrealized loss position for less than twelve months | 24,585 | ' | 24,585 | ' | 48,544 | |||
Unrealized losses of available-for-sale securities in continuous unrealized loss position for less than twelve months | -26 | ' | -26 | ' | -85 | |||
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 11,477 | ' | 11,477 | ' | 2,001 | |||
Unrealized losses of available-for-sale securities in continuous unrealized loss position for twelve months or longer | -11 | ' | -11 | ' | -1 | |||
Current Assets | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale securities, next twelve months, maximum year mature | '1 year | ' | '1 year | ' | ' | |||
Available-for-sale securities, amortized cost basis | 45,048 | [1] | ' | 45,048 | [1] | ' | 47,029 | [2] |
Available-for-sale securities, unrealized gains | 11 | ' | 11 | ' | 10 | |||
Available-for-sale debt securities, unrealized losses | -24 | ' | -24 | ' | -33 | |||
Available-for-sale marketable securities, fair value | 45,035 | [1] | ' | 45,035 | [1] | ' | 47,006 | [2] |
Non-current Assets | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale securities, year two through five, maximum year mature | '3 years | ' | '3 years | ' | ' | |||
Available-for-sale securities, amortized cost basis | 10,802 | [1] | ' | 10,802 | [1] | ' | 17,442 | [2] |
Available-for-sale securities, unrealized gains | 15 | ' | 15 | ' | 0 | |||
Available-for-sale debt securities, unrealized losses | -13 | ' | -13 | ' | -53 | |||
Available-for-sale marketable securities, fair value | 10,804 | [1] | ' | 10,804 | [1] | ' | 17,389 | [2] |
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 | 21,587 | ' | 21,587 | ' | 29,911 | |||
Unrealized losses of available-for-sale securities in continuous unrealized loss position for less than twelve months | -24 | ' | -24 | ' | -35 | |||
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 10,730 | ' | 10,730 | ' | 2,001 | |||
Unrealized losses of available-for-sale securities in continuous unrealized loss position for twelve months or longer | -8 | ' | -8 | ' | -1 | |||
Corporate Bonds | Current Assets | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale securities, amortized cost basis | 36,180 | [1] | ' | 36,180 | [1] | ' | 35,161 | [2] |
Available-for-sale securities, unrealized gains | 10 | ' | 10 | ' | 10 | |||
Available-for-sale debt securities, unrealized losses | -24 | ' | -24 | ' | -30 | |||
Available-for-sale marketable securities, fair value | 36,166 | [1] | ' | 36,166 | [1] | ' | 35,141 | [2] |
Corporate Bonds | Non-current Assets | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale securities, amortized cost basis | 2,050 | [1] | ' | 2,050 | [1] | ' | 6,439 | [2] |
Available-for-sale securities, unrealized gains | 0 | ' | 0 | ' | 0 | |||
Available-for-sale debt securities, unrealized losses | -8 | ' | -8 | ' | -6 | |||
Available-for-sale marketable securities, fair value | 2,042 | [1] | ' | 2,042 | [1] | ' | 6,433 | [2] |
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 | 2,998 | ' | 2,998 | ' | 12,451 | |||
Unrealized losses of available-for-sale securities in continuous unrealized loss position for less than twelve months | -2 | ' | -2 | ' | -49 | |||
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 747 | ' | 747 | ' | 0 | |||
Unrealized losses of available-for-sale securities in continuous unrealized loss position for twelve months or longer | -3 | ' | -3 | ' | 0 | |||
Certificates of Deposit | Current Assets | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale securities, amortized cost basis | 2,752 | [1] | ' | 2,752 | [1] | ' | 1,753 | [2] |
Available-for-sale securities, unrealized gains | 0 | ' | 0 | ' | 0 | |||
Available-for-sale debt securities, unrealized losses | 0 | ' | 0 | ' | -2 | |||
Available-for-sale marketable securities, fair value | 2,752 | [1] | ' | 2,752 | [1] | ' | 1,751 | [2] |
Certificates of Deposit | Non-current Assets | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale securities, amortized cost basis | 8,752 | [1] | ' | 8,752 | [1] | ' | 11,003 | [2] |
Available-for-sale securities, unrealized gains | 15 | ' | 15 | ' | 0 | |||
Available-for-sale debt securities, unrealized losses | -5 | ' | -5 | ' | -47 | |||
Available-for-sale marketable securities, fair value | 8,762 | [1] | ' | 8,762 | [1] | ' | 10,956 | [2] |
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 | |||
Unrealized losses of available-for-sale securities in continuous unrealized loss position for less than twelve months | ' | ' | ' | ' | -1 | |||
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 | |||
Government Municipal Bonds | Current Assets | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale securities, amortized cost basis | 6,116 | [1] | ' | 6,116 | [1] | ' | 10,115 | [2] |
Available-for-sale securities, unrealized gains | 1 | ' | 1 | ' | 0 | |||
Available-for-sale debt securities, unrealized losses | 0 | ' | 0 | ' | -1 | |||
Available-for-sale marketable securities, fair value | $6,117 | [1] | ' | $6,117 | [1] | ' | $10,114 | [2] |
[1] | Included in amortized cost and fair value is purchased and accrued interest of $583 | |||||||
[2] | Included in amortized cost and fair value is purchased and accrued interest of $629 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale marketable securities | $55,839 | [1] | $64,395 | [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 measured at fair value | 9,673 | 3,957 | ||
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 measured at fair value | 55,839 | 64,395 | ||
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 measured at fair value | 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 measured at fair value | 65,512 | 68,352 | ||
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 | 9,673 | 3,957 | ||
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 | 9,673 | 3,957 | ||
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 | 38,208 | 41,574 | ||
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 | 38,208 | 41,574 | ||
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 | 11,514 | 12,707 | ||
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 | 11,514 | 12,707 | ||
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 | 6,117 | 10,114 | ||
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 | $6,117 | $10,114 | ||
[1] | Included in amortized cost and fair value is purchased and accrued interest of $583 | |||
[2] | Included in amortized cost and fair value is purchased and accrued interest of $629 |
Goodwill_and_Other_Identifiabl2
Goodwill and Other Identifiable Intangible Assets, Net (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | $80,921 | $80,136 |
Accumulated amortization | -72,612 | -70,408 |
Net | 8,309 | 9,728 |
Purchased and Core Technology | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | 46,169 | 45,960 |
Accumulated amortization | -44,937 | -44,306 |
Net | 1,232 | 1,654 |
License Agreements | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | 2,440 | 2,440 |
Accumulated amortization | -2,440 | -2,440 |
Net | 0 | 0 |
Patents and Trademarks | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | 11,755 | 11,322 |
Accumulated amortization | -9,546 | -9,000 |
Net | 2,209 | 2,322 |
Customer Relationships | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | 19,097 | 18,954 |
Accumulated amortization | -15,017 | -14,130 |
Net | 4,080 | 4,824 |
Non-compete Agreements | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | 1,100 | 1,100 |
Accumulated amortization | -312 | -202 |
Net | 788 | 898 |
Order Backlog | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | 360 | 360 |
Accumulated amortization | -360 | -330 |
Net | $0 | $30 |
Goodwill_and_Other_Identifiabl3
Goodwill and Other Identifiable Intangible Assets, Net Amortization Expense (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization expense | $900 | $1,100 | $1,891 | $2,204 |
2014 six months | 1,704 | ' | 1,704 | ' |
2015 | 3,078 | ' | 3,078 | ' |
2016 | 1,545 | ' | 1,545 | ' |
2017 | 839 | ' | 839 | ' |
2018 | 482 | ' | 482 | ' |
2019 | $438 | ' | $438 | ' |
Goodwill_and_Other_Identifiabl4
Goodwill and Other Identifiable Intangible Assets, Net Goodwill (Details) (USD $) | 6 Months Ended | 0 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | |
industry | Minimum [Member] | Maximum [Member] | |||||
Goodwill [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | $103,569,000 | $86,209,000 | ' | ' | ' | ' | ' |
Acquisition of Etherios, Inc. | 0 | 17,120,000 | ' | ' | ' | ' | ' |
Foreign currency translation adjustment | 476,000 | 62,000 | ' | ' | ' | ' | ' |
Ending balance | 104,045,000 | 103,391,000 | ' | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Market capitalization | ' | ' | ' | 241,400,000 | ' | ' | ' |
Carrying value | $275,700,000 | ' | $274,266,000 | $272,300,000 | ' | ' | ' |
Control premium percent | ' | ' | ' | ' | 40.00% | ' | ' |
Percent fair value in excess of carrying value of goodwill | ' | ' | ' | 24.00% | ' | ' | ' |
Target companies equity benchmark | ' | ' | ' | ' | 50.00% | ' | ' |
Number of industries encompasses similar products | ' | ' | ' | ' | 3 | ' | ' |
Control premium percent range | ' | ' | ' | ' | ' | 30.00% | 45.00% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Effective income tax rate | ' | ' | ' | ' | -671.10% | 18.00% | ' |
Discrete income tax (benefit) | ($1.10) | ($0.20) | ($0.40) | ($0.10) | ($1.30) | ' | ' |
Percentage points that reduced effective tax rate | ' | ' | ' | ' | -714 | -19.1 | ' |
Unrecognized tax benefits that would impact effective tax rate | 2 | ' | ' | ' | 2 | ' | ' |
Income tax penalties and interest accrued | 0.4 | ' | ' | ' | 0.4 | ' | 0.6 |
Accumulated undistributed foreign earnings | 25.7 | ' | ' | ' | 25.7 | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Estimated unrecognized deferred tax liability | 1.5 | ' | ' | ' | 1.5 | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Estimated unrecognized deferred tax liability | $2.50 | ' | ' | ' | $2.50 | ' | ' |
Income_Taxes_Unrecognized_Tax_
Income Taxes (Unrecognized Tax Benefits) (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' |
Unrecognized tax benefits, beginning balance | $3,332 |
Decreases related to Prior year income tax positions | -1,060 |
Decreases related to Settlements | -94 |
Decreases related to Expiration of statute of limitations | -160 |
Unrecognized tax benefits, ending balance | $2,018 |
Product_Warranty_Obligation_De
Product Warranty Obligation (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Product Warranties Disclosures [Abstract] | ' | ' | ' | ' |
Warranty period, minimum | ' | ' | '1 year | ' |
Warranty period, maximum | ' | ' | '5 years | ' |
Standard Product Warranty Accrual [Roll Forward] | ' | ' | ' | ' |
Beginning balance | $1,013 | $935 | $1,063 | $1,021 |
Warranties issued | 176 | 103 | 322 | 153 |
Settlements made | -217 | -113 | -413 | -249 |
Ending balance | $972 | $925 | $972 | $925 |
Contingencies_Details
Contingencies (Details) (Patent Infringement [Member], USD $) | 0 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Apr. 22, 2013 |
Patent Infringement [Member] | ' |
Loss Contingencies [Line Items] | ' |
Litigation settlement amount | $1.50 |
Litigation settlement amount, net of taxes | $1 |
Litigation settlement amount, impact on diluted earnings per share | $0.04 |
Restructuring_Details
Restructuring (Details) (USD $) | 6 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Oct. 31, 2013 | Dec. 31, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Apr. 26, 2012 | Apr. 26, 2012 | Apr. 26, 2012 |
Employee Termination Costs | Fiscal 2014 Restructuring | Fiscal 2014 Restructuring | Fiscal 2013 Restructuring | Fiscal 2013 Restructuring | Fiscal 2012 Restructuring | Fiscal 2012 Restructuring | Fiscal 2012 Restructuring | |
employees | Employee Termination Costs | employees | Employee Termination Costs | employees | Employee Termination Costs | Other | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees eliminated | ' | 40 | ' | 15 | ' | 30 | ' | ' |
Beginning Balance | $350 | ' | ' | ' | ' | ' | ' | ' |
Restructuring charge | 152 | ' | 200 | ' | 400 | 1,000 | 600 | 400 |
Payments | -428 | ' | ' | ' | ' | ' | ' | ' |
Reversals | -71 | ' | ' | ' | ' | ' | ' | ' |
Ending Balance | $3 | ' | ' | ' | ' | ' | ' | ' |