Digi International (DGII) 10-Q 31 Jul 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2015	Jul. 28, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	DIGI INTERNATIONAL INC.
Entity Central Index Key	854,775
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		24,985,341

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue:
Hardware product	$ 50,001	$ 43,303	$ 143,042	$ 125,852
Service	4,537	4,582	13,370	15,237
Total revenue	54,538	47,885	156,412	141,089
Cost of sales:
Cost of hardware product	25,729	21,587	74,339	61,862
Cost of service	3,460	4,149	10,724	12,390
Total cost of sales	29,189	25,736	85,063	74,252
Gross profit	25,349	22,149	71,349	66,837
Operating expenses:
Sales and marketing	9,434	9,859	30,525	30,477
Research and development	8,374	7,253	23,715	21,921
General and administrative	4,720	5,317	14,448	14,659
Restructuring charges, net	(9)	0	509	81
Total operating expenses	22,519	22,429	69,197	67,138
Operating income (loss)	2,830	(280)	2,152	(301)
Other income (loss), net:
Interest income, net	42	35	134	127
Other income (loss), net	419	(69)	2,131	45
Total other income (loss), net	461	(34)	2,265	172
Income (loss) before income taxes	3,291	(314)	4,417	(129)
Income tax provision (benefit)	795	(213)	814	(1,454)
Net income (loss)	$ 2,496	$ (101)	$ 3,603	$ 1,325
Net income per common share:
Basic (USD per share)	$ 0.10	$ 0	$ 0.15	$ 0.05
Diluted (USD per share)	$ 0.10	$ 0	$ 0.14	$ 0.05
Weighted average common shares:
Basic (shares)	24,938	25,274	24,525	25,545
Diluted (shares)	25,710	25,274	25,085	25,965

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Jun. 30, 2015		Jun. 30, 2014	Jun. 30, 2015		Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 2,496		$ (101)	$ 3,603		$ 1,325
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	1,571		384	(4,158)		546
Change in net unrealized gain (loss) on investments	4		(2)	(2)		62
Less income tax (provision) benefit	(1)		1	1		(24)
Reclassification of realized loss on investments included in net income	0	[1]	0	1	[1]	0
Other comprehensive income (loss), net of tax	1,574		383	(4,158)		584
Comprehensive income (loss)	$ 4,070		$ 282	$ (555)		$ 1,909
[1]	Recorded in Other income (loss), net on our Condensed Consolidated Statement of Operations.

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Current assets:
Cash and cash equivalents	$ 53,755	$ 47,490
Marketable securities	37,527	32,898
Accounts receivable, net	24,415	28,576
Inventories	34,690	31,247
Deferred tax assets	3,072	3,221
Other	2,912	4,249
Total current assets	156,371	147,681
Marketable securities, long-term	9,471	11,541
Property, equipment and improvements, net	14,628	13,231
Identifiable intangible assets, net	4,789	6,785
Goodwill	102,497	103,398
Deferred tax assets	5,708	7,383
Other	293	440
Total assets	293,757	290,459
Current liabilities:
Accounts payable	7,048	10,451
Accrued compensation	10,464	8,133
Other	3,372	3,170
Total current liabilities	20,884	21,754
Income taxes payable	1,401	2,724
Deferred tax liabilities	151	272
Other noncurrent liabilities	678	411
Total liabilities	$ 23,114	$ 25,161
Contingencies (see Note 9)
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; 31,499,053 and 30,703,895 shares issued	315	307
Additional paid-in capital	226,102	218,689
Retained earnings	121,419	117,816
Accumulated other comprehensive loss	(22,435)	(18,277)
Treasury stock, at cost, 6,513,712 and 6,313,937 shares	(54,758)	(53,237)
Total stockholders' equity	270,643	265,298
Total liabilities and stockholders' equity	$ 293,757	$ 290,459

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2015	Sep. 30, 2014
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	31,499,053	30,703,895
Treasury stock, shares	6,513,712	6,313,937

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities:
Net income	$ 3,603	$ 1,325
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, equipment and improvements	2,170	2,694
Amortization of identifiable intangible assets	2,286	2,787
Stock-based compensation	3,262	3,160
Excess tax benefits from stock-based compensation	0	(44)
Deferred income tax provision (benefit)	1,729	(2,033)
Gain on insurance settlement related to property and equipment	(1,375)	0
Bad debt/product return provision (recovery)	198	(196)
Inventory obsolescence	842	610
Restructuring charges, net	509	81
Other	(81)	(24)
Changes in operating assets and liabilities	(4,147)	(5,815)
Net cash provided by operating activities	8,996	2,545
Investing activities:
Purchase of marketable securities	(31,054)	(15,574)
Proceeds from maturities of marketable securities	28,494	35,364
Proceeds from insurance settlement related to property and equipment	1,400	0
Proceeds from sale of property and equipment	45	0
Purchase of property, equipment, improvements and certain other intangible assets	(3,888)	(2,719)
Net cash (used in) provided by investing activities	(5,003)	17,071
Financing activities:
Excess tax benefits from stock-based compensation	0	44
Proceeds from stock option plan transactions	6,332	3,336
Proceeds from employee stock purchase plan transactions	708	770
Purchases of common stock	(2,339)	(9,651)
Net cash provided by (used in) financing activities	4,701	(5,501)
Effect of exchange rate changes on cash and cash equivalents	(2,429)	482
Net increase in cash and cash equivalents	6,265	14,597
Cash and cash equivalents, beginning of period	47,490	41,320
Cash and cash equivalents, end of period	$ 53,755	$ 55,917

Basis of Presentation of Unaudi

Basis of Presentation of Unaudited Interim Condensed Consolidated Financial Statements and Significant Accounting Policies	9 Months Ended
	Jun. 30, 2015
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, 2014 as filed with the SEC (“2014 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 2014 Financial Statements, but do not include all disclosures required by U.S. GAAP. Recently Issued Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-05, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The new standard provides guidance to customers about whether a cloud computing arrangement includes a software license. If the arrangement does include a software license, the software license element of the arrangement should be accounted for in the same manner as the acquisition of other software licenses. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early adoption permitted. We expect to adopt this guidance beginning with our fiscal quarter ending December 31, 2016. We do not expect this guidance to have a material impact on our consolidated financial statements. In May 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This guidance provides a five-step analysis in determining when and how revenue is recognized so that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods and services. It also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In July 2015, the FASB approved a one-year deferral of the effective date of ASU 2014-09, Revenue from Contracts with Customers. We can elect to adopt the provisions of ASU 2014-09 for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. We are assessing the adoption date and potential impact of adopting this ASU on our consolidated financial statements and related disclosures.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Jun. 30, 2015
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 shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares result from dilutive common stock options and restricted stock units. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common shares. All potentially dilutive common equivalent shares are excluded from the calculations of net loss per diluted share due to their anti-dilutive effect. As a result, no common equivalent shares were included in the calculation of net loss per diluted share for the three month period ended June 30, 2014. 2. EARNINGS PER SHARE (CONTINUED) 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 June 30, Nine months ended June 30, 2015 2014 2015 2014 Numerator: Net income (loss) $ 2,496 $ (101 ) $ 3,603 $ 1,325 Denominator: Denominator for basic net income per common share — weighted average shares outstanding 24,938 25,274 24,525 25,545 Effect of dilutive securities: Stock options and restricted stock units 772 — 560 420 Denominator for diluted net income per common share — adjusted weighted average shares 25,710 25,274 25,085 25,965 Net income per common share, basic $ 0.10 $ — $ 0.15 $ 0.05 Net income per common share, diluted $ 0.10 $ — $ 0.14 $ 0.05 For the three months ended June 30, 2015 and 2014 , there were 2,416,518 and 4,979,372 potentially dilutive shares, respectively, and for the nine months ended June 30, 2015 and 2014 , there were 3,451,827 and 3,399,013 potentially dilutive shares, respectively, related to stock options to purchase common shares that 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.

Selected Balance Sheet Data

Selected Balance Sheet Data	9 Months Ended
	Jun. 30, 2015
Selected Balance Sheet Data [Abstract]
SELECTED BALANCE SHEET DATA	SELECTED BALANCE SHEET DATA (in thousands) June 30, 2015 September 30, 2014 Accounts receivable, net: Accounts receivable $ 24,812 $ 28,943 Less allowance for doubtful accounts 397 367 Accounts receivable, net $ 24,415 $ 28,576 Inventories: Raw materials $ 28,043 $ 26,402 Work in process 615 315 Finished goods 6,032 4,530 Inventories $ 34,690 $ 31,247 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	9 Months Ended
	Jun. 30, 2015
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 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 June 30, 2015 , 25 of our 63 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 4. MARKETABLE SECURITIES (CONTINUED) 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 three years. During the three months ended June 30, 2015 and 2014 , we received proceeds from our available-for-sale marketable securities of $8.7 million and $21.6 million , respectively. During the nine months ended June 30, 2015 and 2014 , we received proceeds from our available-for-sale marketable securities of $28.5 million and $35.4 million , respectively. At June 30, 2015 our marketable securities were (in thousands): Amortized Cost (1) Unrealized Gains Unrealized Losses Fair Value (1) Current marketable securities: Corporate bonds $ 28,065 $ — $ (31 ) $ 28,034 Commercial paper 3,991 — (4 ) 3,987 Certificates of deposit 5,502 4 — 5,506 Current marketable securities 37,558 4 (35 ) 37,527 Non-current marketable securities: Corporate bonds 3,723 — (14 ) 3,709 Certificates of deposit 4,504 13 — 4,517 Government municipal bonds 1,246 — (1 ) 1,245 Non-current marketable securities 9,473 13 (15 ) 9,471 Total marketable securities $ 47,031 $ 17 $ (50 ) $ 46,998 (1) Included in amortized cost and fair value is purchased and accrued interest of $262 . At September 30, 2014 our marketable securities were (in thousands): Amortized Cost (1) Unrealized Gains Unrealized Losses Fair Value (1) Current marketable securities: Corporate bonds $ 24,668 $ 1 $ (22 ) $ 24,647 Commercial paper 3,998 — (1 ) 3,997 Certificates of deposit 4,252 2 — 4,254 Current marketable securities 32,918 3 (23 ) 32,898 Non-current marketable securities: Corporate bonds 2,051 — (4 ) 2,047 Certificates of deposit 9,502 14 (22 ) 9,494 Non-current marketable securities 11,553 14 (26 ) 11,541 Total marketable securities $ 44,471 $ 17 $ (49 ) $ 44,439 (1) Included in amortized cost and fair value is purchased and accrued interest of $213 . 4. 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): June 30, 2015 Less than 12 Months More than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 26,499 $ (44 ) $ 5,002 $ (1 ) Commercial paper 1,991 (4 ) — — Government municipal bonds 1,230 (1 ) — — Total $ 29,720 $ (49 ) $ 5,002 $ (1 ) September 30, 2014 Less than 12 Months More than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 23,475 $ (26 ) $ — $ — Commercial paper 3,998 (1 ) — — Certificates of deposit 2,980 (20 ) 748 (2 ) Total $ 30,453 $ (47 ) $ 748 $ (2 )

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Jun. 30, 2015
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 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. 5. 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): Total carrying value at Fair Value Measurements Using Inputs Considered as June 30, 2015 Level 1 Level 2 Level 3 Cash equivalents: Money market $ 19,199 $ 19,199 $ — $ — Available-for-sale marketable securities: Corporate bonds 31,743 — 31,743 — Commercial paper 3,987 — 3,987 — Certificates of deposit 10,023 — 10,023 — Government municipal bonds 1,245 — 1,245 — Total cash equivalents and marketable securities measured at fair value $ 66,197 $ 19,199 $ 46,998 $ — Total carrying value at Fair Value Measurements Using Inputs Considered as September 30, 2014 Level 1 Level 2 Level 3 Cash equivalents: Money market $ 19,630 $ 19,630 $ — $ — Available-for-sale marketable securities: Corporate bonds 26,694 — 26,694 — Commercial paper 3,997 — 3,997 — Certificates of deposit 13,748 — 13,748 — Total cash equivalents and marketable securities measured at fair value $ 64,069 $ 19,630 $ 44,439 $ — Our money market funds, which have been determined to be 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 nine months ended June 30, 2015 . We did not carry, purchase or sell any Level 3 financial assets during the nine months ended June 30, 2015 . 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 Identifiable

Goodwill and Other Identifiable Intangible Assets, Net	9 Months Ended
	Jun. 30, 2015
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): June 30, 2015 September 30, 2014 Gross carrying amount Accum. amort. Net Gross carrying amount Accum. amort. Net Purchased and core technology $ 45,659 $ (45,510 ) $ 149 $ 45,952 $ (45,162 ) $ 790 License agreements — — — 2,440 (2,440 ) — Patents and trademarks 11,993 (10,560 ) 1,433 11,667 (9,799 ) 1,868 Customer relationships 18,609 (15,915 ) 2,694 18,894 (15,445 ) 3,449 Non-compete agreements 1,100 (587 ) 513 1,100 (422 ) 678 Order backlog — — — 360 (360 ) — Total $ 77,361 $ (72,572 ) $ 4,789 $ 80,413 $ (73,628 ) $ 6,785 Amortization expense was $0.7 million and $0.9 million for the three month periods ended June 30, 2015 and 2014 , respectively. Amortization expense was $2.3 million and $2.8 million for the nine month periods ended June 30, 2015 and 2014 , 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 2015 and the five succeeding fiscal years is (in thousands): 2015 three months $ 625 2016 1,926 2017 896 2018 487 2019 451 2020 168 The changes in the carrying amount of goodwill are (in thousands): Nine months ended 2015 2014 Beginning balance, October 1 $ 103,398 $ 103,569 Foreign currency translation adjustment (901 ) 760 Ending balance, June 30 $ 102,497 $ 104,329 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, 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, 2015 , our market capitalization was $238.6 million compared to our carrying value of $270.6 million . Our market capitalization plus our estimated control premium of 35% (discussed in the paragraphs below) resulted in a fair value in excess 6. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET (CONTINUED) of our carrying value by a margin of 19% . We concluded that 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 2014, we performed a control premium study to determine the appropriate control premium to include in the calculation of fair value. We used a third party valuation firm to assist us in performing this control premium analysis. In order to estimate the range of control premiums appropriate for us, the following three methodologies were used: (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 Technology Hardware, Storage and Peripherals industries were used to find transactions of target companies that operated in similar markets and shared similar operating characteristics with us. 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, 2009 and the valuation date. In analyzing industry-wide data, transactions in the following 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 40 percent . We reviewed the data and concluded that a 35 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. Based on our industry knowledge, including recent industry merger and acquisition activity, we concluded that the control premium study that was performed a year ago is still an appropriate study to use for our June 30, 2015 goodwill impairment assessment. If our stock price or control premium declines, the first step of our goodwill impairment analysis may fail. We have identified factors that could result in additional interim goodwill impairment testing. For example, we would perform the second step of the impairment testing if our stock price fell below certain 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 or more generally in the financial markets. 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.

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Income tax provision was $0.8 million for the nine month period ended June 30, 2015 . Net tax benefits specific to the nine months ended June 30, 2015 were $0.9 million resulting from the reinstatement of the research and development tax credit for calendar year 2014 and reversal of tax reserves due to the expiration of statutes of limitation from U.S. and foreign tax jurisdictions. These discrete tax benefits were partially offset by a discrete tax expense for the adjustment of state rate on net deferred tax assets. For the nine month period ended June 30, 2015 , our effective tax rate before items specific to the period was more than the U.S. statutory rate due primarily to mix of income between taxing jurisdictions, certain of which have higher statutory tax rates than the U.S., an increase in permanent tax items and an increase in certain reserves for unrecognized tax benefits. Income tax benefit was $1.5 million for the nine month period ended June 30, 2014 . Net tax benefits specific to the period of $1.4 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, a reversal of reserves due to the expiration of statutes of limitation from U.S. and foreign tax jurisdictions and a valuation allowance reversal associated with the reassessment of state research and development tax credits. For the nine month period ended June 30, 2014 , our effective tax rate before items specific to the period was more than the statutory rate primarily due to an adjustment for certain foreign income taxed at the U.S. rate and lower than expected benefits associated with certain state credits. 7. INCOME TAXES (CONTINUED) 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 tax items specific to the period, such as settlements of audits. We expect that we may record other benefits or expenses in the future that are specific to a particular quarter such as expiration of statutes of limitation, the completion of tax audits, or legislation that is enacted for both U.S. and foreign jurisdictions. A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands): Unrecognized tax benefits as of September 30, 2014 $ 2,301 Increases related to: Prior year income tax positions 110 Decreases related to: Prior year income tax positions (255 ) Settlements (74 ) Expiration of statute of limitations (543 ) Unrecognized tax benefits as of June 30, 2015 $ 1,539 The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate is $1.5 million , after considering the impact of interest and deferred benefit items. We expect the total amounts of unrecognized tax benefits will decrease by approximately $0.2 million over the next 12 months. Of the $1.5 million of unrecognized tax benefits, $1.1 million is included in non-current income taxes payable and $0.4 million is included with non-current deferred tax assets on the condensed consolidated balance sheet at June 30, 2015 . We recognize interest and penalties related to income tax matters in income tax expense. During both the nine month periods ended June 30, 2015 and 2014 , 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 was $0.3 million and $0.4 million at June 30, 2015 and September 30, 2014 , respectively. Our non-current income taxes payable on our condensed consolidated balance sheet includes accrued interest and penalties in addition to the unrecognized tax benefits of $1.1 million at June 30, 2015 . At June 30, 2015 , we had approximately $28.8 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 to 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 $0.9 million to $1.9 million . 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 2013 for U.S. federal income tax authorities, and prior to fiscal 2009 for non-U.S. income tax authorities. For state taxing authorities, most notably in California and Texas, we are no longer subject to income tax examination for tax years generally before fiscal 2010 , and for Minnesota for tax years prior to fiscal 2013.

Product Warranty Obligation

Product Warranty Obligation	9 Months Ended
	Jun. 30, 2015
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. 8. 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 within current liabilities: Balance at Warranties Settlements Balance at Period April 1 issued made June 30 Three months ended June 30, 2015 $ 923 $ 276 $ (192 ) $ 1,007 Three months ended June 30, 2014 $ 972 $ 105 $ (177 ) $ 900 Balance at Warranties Settlements Balance at Period October 1 issued made June 30 Nine months ended June 30, 2015 $ 862 $ 773 $ (628 ) $ 1,007 Nine months ended June 30, 2014 $ 1,063 $ 427 $ (590 ) $ 900 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	9 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES 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.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Stock-based awards were granted under the 2014 Omnibus Incentive Plan (the “2014 Plan”) during the nine months ended June 30, 2015 . During the nine months ended June 30, 2014 , stock-based awards were granted under the 2013 Omnibus Incentive Plan (which expired during the second quarter of fiscal 2014) and the 2014 Plan. Upon stockholder approval of the 2014 Plan, we ceased granting awards under any prior plan. The authority to grant options under the 2014 Plan and set other terms and conditions rests with the Compensation Committee of the Board of Directors. The 2014 Plan authorizes the issuance of up to 2,250,000 common shares in connection with awards of stock options, stock appreciation rights, restricted stock, restricted stock units, performance-based full value awards or other stock-based awards. Eligible participants include our employees, our affiliates, non-employee directors of our Company and any consultant or advisor who is a natural person and provides services to us or our affiliates. Options that have been granted under the 2014 Plan typically vest over a four year service period and will expire if unexercised after eight years from the date of grant. Restricted stock awards (RSU's) that have been granted to Directors typically vest in one year. RSU's that have been granted to executives and employees typically vest in November over a four -year period. Awards may be granted under the 2014 Plan until January 27, 2024. Options under the 2014 Plan can be granted as either incentive stock options (ISOs) or non-statutory stock options (NSOs). The exercise price of options and the grant date price of restricted stock 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. Upon exercise, we issue new shares of stock. Our equity plans and corresponding forms of award agreements generally have provisions allowing employees to elect to satisfy tax withholding obligations through the delivery of shares, having us retain a portion of shares issuable under the award or paying cash to us for the withholding. As of June 30, 2015 , there were approximately 1,317,996 shares available for future grants under the 2014 Plan. Cash received from the exercise of stock options was $6.3 million during the nine months ended June 30, 2015 and $3.3 million during the nine months ended June 30, 2014 . There were no excess tax benefits from stock-based compensation for the nine months ended June 30, 2015 . The excess tax benefits from stock-based compensation were minimal during the nine months ended June 30, 2014 . We sponsor an Employee Stock Purchase Plan (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. Employee contributions to the Purchase Plan were $0.7 million during the nine 10. STOCK-BASED COMPENSATION (CONTINUED) months ended June 30, 2015 and $0.8 million during the nine months ended June 30, 2014 , respectively. Pursuant to the Purchase Plan, 97,383 and 92,321 common shares were issued to employees during the nine months ended June 30, 2015 and 2014 , respectively. Shares are issued under the Purchase Plan from treasury stock. As of June 30, 2015 , 643,995 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): Three months ended June 30, Nine months ended June 30, 2015 2014 2015 2014 Cost of sales $ 88 $ 92 $ 277 $ 242 Sales and marketing 283 285 932 853 Research and development 193 176 581 559 General and administrative 476 537 1,472 1,506 Stock-based compensation before income taxes 1,040 1,090 3,262 3,160 Income tax benefit (366 ) (378 ) (1,141 ) (1,081 ) Stock-based compensation after income taxes $ 674 $ 712 $ 2,121 $ 2,079 Stock-based compensation cost capitalized as part of inventory was immaterial as of June 30, 2015 and September 30, 2014 . The following table summarizes our stock option activity (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, 2014 6,029 $10.61 Granted 810 8.12 Exercised (714 ) 8.87 Forfeited / Canceled (1,230 ) 11.59 Balance at June 30, 2015 4,895 $10.21 5.2 $ 2,209 Exercisable at June 30, 2015 3,498 $10.68 4.4 $ 984 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $9.55 as of June 30, 2015 , 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 the nine months ended June 30, 2015 was $0.8 million and during the nine months ended June 30, 2014 was $0.5 million . 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: Nine months ended June 30, 2015 2014 Weighted average per option grant date fair value $2.98 $4.38 Assumptions used for option grants: Risk free interest rate 1.57% - 1.85% 1.76% - 2.02% Expected term 6.00 years 6.00 years Expected volatility 32% - 36% 39% - 40% Weighted average volatility 35% 40% Expected dividend yield 0 0 10. STOCK-BASED COMPENSATION (CONTINUED) 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. We use historical data to estimate pre-vesting forfeiture rates. The pre-vesting forfeiture rate used during the nine months ended June 30, 2015 was 6.0% . As of June 30, 2015 the total unrecognized compensation cost related to non-vested stock options, net of expected forfeitures, was $4.2 million and the related weighted average period over which it is expected to be recognized is approximately 2.9 years. A summary of our non-vested restricted stock units as of June 30, 2015 and changes during the nine months then ended is presented below (in thousands, except per common share amounts): Number of Awards Weighted Average Grant Date Fair Value Nonvested at September 30, 2014 171 $ 9.35 Granted 490 $ 8.22 Vested (81 ) $ 9.60 Canceled (30 ) $ 7.90 Nonvested at June 30, 2015 550 $ 8.39 As of June 30, 2015 , the total unrecognized compensation cost related to non-vested restricted stock units was $3.5 million and the related weighted average period over which it is expected to be recognized is approximately 1.7 years.

Common Stock Repurchase

Common Stock Repurchase	9 Months Ended
	Jun. 30, 2015
Common Stock Repurchase [Abstract]
COMMON STOCK REPURCHASE	COMMON STOCK REPURCHASE On October 28, 2014, our Board of Directors authorized a new program to repurchase up to $15.0 million of our common stock primarily to return capital to shareholders and to support our employee stock purchase program. This new authorization began on November 1, 2014 and expires on October 31, 2015. Shares repurchased under the program may be made through the open market and privately negotiated transactions from time to time and in amounts that management deems appropriate. The amount and timing of share repurchases will depend upon market conditions and other corporate considerations. We did not repurchase shares under this program during the first nine months of fiscal 2015. Our prior share repurchase authorization program expired on October 31, 2014. During the month of October 2014, we repurchased 287,787 shares under this program for $2.3 million . In addition to the shares repurchased under the prior Board authorized repurchase program, during the nine months ended June 30, 2015, our employees forfeited 9,371 shares in order to satisfy $0.1 million of withholding tax obligations related to stock-based compensation, pursuant to terms of awards under our board and shareholder-approved compensation plans.

Restructuring

Restructuring	9 Months Ended
	Jun. 30, 2015
Restructuring and Related Activities [Abstract]
RESTRUCTURING	RESTRUCTURING Below is a summary of the restructuring charges and other activity within the restructuring accrual (in thousands): 2015 Restructuring 2014 Restructuring 2013 Restructuring Employee Employee Employee Total Balance at September 30, 2013 $ — $ — $ 350 $ 350 Restructuring charge — 152 — 152 Payments — (152 ) (279 ) (431 ) Reversals — — (71 ) (71 ) Balance at September 30, 2014 — — — — Restructuring charge 518 — — 518 Payments (497 ) — — (497 ) Reversals (9 ) — — (9 ) Balance at June 30, 2015 $ 12 $ — $ — $ 12 Fiscal 2015 Restructuring On February 20, 2015, we announced a restructuring plan related to our Etherios operations in order to refocus the business on CRM and service cloud implementations. We recorded a restructuring charge of $0.3 million related to severance during the second quarter of fiscal 2015. We scaled the business to current and expected revenue levels resulting in an elimination of approximately 21 positions. The payments associated with these charges are expected to be completed by the end of fiscal 2015. On January 22, 2015, we announced the closure of our India location. The March closure resulted in the elimination of approximately 38 employees from engineering, sales and administration. We recorded a restructuring charge of $0.2 million related to severance during the second quarter of fiscal 2015. The payments associated with this charge were completed during the third quarter of fiscal 2015. 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. 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.

Basis of Presentation of Unau19

Basis of Presentation of Unaudited Interim Condensed Consolidated Financial Statements and Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-05, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The new standard provides guidance to customers about whether a cloud computing arrangement includes a software license. If the arrangement does include a software license, the software license element of the arrangement should be accounted for in the same manner as the acquisition of other software licenses. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early adoption permitted. We expect to adopt this guidance beginning with our fiscal quarter ending December 31, 2016. We do not expect this guidance to have a material impact on our consolidated financial statements. In May 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This guidance provides a five-step analysis in determining when and how revenue is recognized so that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods and services. It also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In July 2015, the FASB approved a one-year deferral of the effective date of ASU 2014-09, Revenue from Contracts with Customers. We can elect to adopt the provisions of ASU 2014-09 for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. We are assessing the adoption date and potential impact of adopting this ASU on our consolidated financial statements and related disclosures.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Jun. 30, 2015
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 June 30, Nine months ended June 30, 2015 2014 2015 2014 Numerator: Net income (loss) $ 2,496 $ (101 ) $ 3,603 $ 1,325 Denominator: Denominator for basic net income per common share — weighted average shares outstanding 24,938 25,274 24,525 25,545 Effect of dilutive securities: Stock options and restricted stock units 772 — 560 420 Denominator for diluted net income per common share — adjusted weighted average shares 25,710 25,274 25,085 25,965 Net income per common share, basic $ 0.10 $ — $ 0.15 $ 0.05 Net income per common share, diluted $ 0.10 $ — $ 0.14 $ 0.05

Selected Balance Sheet Data (Ta

Selected Balance Sheet Data (Tables)	9 Months Ended
	Jun. 30, 2015
Selected Balance Sheet Data [Abstract]
Schedule of Selected Balance Sheet Data	(in thousands) June 30, 2015 September 30, 2014 Accounts receivable, net: Accounts receivable $ 24,812 $ 28,943 Less allowance for doubtful accounts 397 367 Accounts receivable, net $ 24,415 $ 28,576 Inventories: Raw materials $ 28,043 $ 26,402 Work in process 615 315 Finished goods 6,032 4,530 Inventories $ 34,690 $ 31,247

Marketable Securities (Tables)

Marketable Securities (Tables)	9 Months Ended
	Jun. 30, 2015
Marketable Securities [Abstract]
Schedule of Marketable Securities	At June 30, 2015 our marketable securities were (in thousands): Amortized Cost (1) Unrealized Gains Unrealized Losses Fair Value (1) Current marketable securities: Corporate bonds $ 28,065 $ — $ (31 ) $ 28,034 Commercial paper 3,991 — (4 ) 3,987 Certificates of deposit 5,502 4 — 5,506 Current marketable securities 37,558 4 (35 ) 37,527 Non-current marketable securities: Corporate bonds 3,723 — (14 ) 3,709 Certificates of deposit 4,504 13 — 4,517 Government municipal bonds 1,246 — (1 ) 1,245 Non-current marketable securities 9,473 13 (15 ) 9,471 Total marketable securities $ 47,031 $ 17 $ (50 ) $ 46,998 (1) Included in amortized cost and fair value is purchased and accrued interest of $262 . At September 30, 2014 our marketable securities were (in thousands): Amortized Cost (1) Unrealized Gains Unrealized Losses Fair Value (1) Current marketable securities: Corporate bonds $ 24,668 $ 1 $ (22 ) $ 24,647 Commercial paper 3,998 — (1 ) 3,997 Certificates of deposit 4,252 2 — 4,254 Current marketable securities 32,918 3 (23 ) 32,898 Non-current marketable securities: Corporate bonds 2,051 — (4 ) 2,047 Certificates of deposit 9,502 14 (22 ) 9,494 Non-current marketable securities 11,553 14 (26 ) 11,541 Total marketable securities $ 44,471 $ 17 $ (49 ) $ 44,439 (1) Included in amortized cost and fair value is purchased and accrued interest of $213 .
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): June 30, 2015 Less than 12 Months More than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 26,499 $ (44 ) $ 5,002 $ (1 ) Commercial paper 1,991 (4 ) — — Government municipal bonds 1,230 (1 ) — — Total $ 29,720 $ (49 ) $ 5,002 $ (1 ) September 30, 2014 Less than 12 Months More than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 23,475 $ (26 ) $ — $ — Commercial paper 3,998 (1 ) — — Certificates of deposit 2,980 (20 ) 748 (2 ) Total $ 30,453 $ (47 ) $ 748 $ (2 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Jun. 30, 2015
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): Total carrying value at Fair Value Measurements Using Inputs Considered as June 30, 2015 Level 1 Level 2 Level 3 Cash equivalents: Money market $ 19,199 $ 19,199 $ — $ — Available-for-sale marketable securities: Corporate bonds 31,743 — 31,743 — Commercial paper 3,987 — 3,987 — Certificates of deposit 10,023 — 10,023 — Government municipal bonds 1,245 — 1,245 — Total cash equivalents and marketable securities measured at fair value $ 66,197 $ 19,199 $ 46,998 $ — Total carrying value at Fair Value Measurements Using Inputs Considered as September 30, 2014 Level 1 Level 2 Level 3 Cash equivalents: Money market $ 19,630 $ 19,630 $ — $ — Available-for-sale marketable securities: Corporate bonds 26,694 — 26,694 — Commercial paper 3,997 — 3,997 — Certificates of deposit 13,748 — 13,748 — Total cash equivalents and marketable securities measured at fair value $ 64,069 $ 19,630 $ 44,439 $ —

Goodwill and Other Identifiab24

Goodwill and Other Identifiable Intangible Assets, Net (Tables)	9 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Amortizable Identifiable Intangible Assets	Amortizable identifiable intangible assets were (in thousands): June 30, 2015 September 30, 2014 Gross carrying amount Accum. amort. Net Gross carrying amount Accum. amort. Net Purchased and core technology $ 45,659 $ (45,510 ) $ 149 $ 45,952 $ (45,162 ) $ 790 License agreements — — — 2,440 (2,440 ) — Patents and trademarks 11,993 (10,560 ) 1,433 11,667 (9,799 ) 1,868 Customer relationships 18,609 (15,915 ) 2,694 18,894 (15,445 ) 3,449 Non-compete agreements 1,100 (587 ) 513 1,100 (422 ) 678 Order backlog — — — 360 (360 ) — Total $ 77,361 $ (72,572 ) $ 4,789 $ 80,413 $ (73,628 ) $ 6,785
Schedule of Estimated Amortization Expense Related to Identifiable Intangible Assets	Estimated amortization expense related to identifiable intangible assets for the remainder of fiscal 2015 and the five succeeding fiscal years is (in thousands): 2015 three months $ 625 2016 1,926 2017 896 2018 487 2019 451 2020 168
Schedule of Changes in Carrying Amount of Goodwill	The changes in the carrying amount of goodwill are (in thousands): Nine months ended 2015 2014 Beginning balance, October 1 $ 103,398 $ 103,569 Foreign currency translation adjustment (901 ) 760 Ending balance, June 30 $ 102,497 $ 104,329

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Jun. 30, 2015
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, 2014 $ 2,301 Increases related to: Prior year income tax positions 110 Decreases related to: Prior year income tax positions (255 ) Settlements (74 ) Expiration of statute of limitations (543 ) Unrecognized tax benefits as of June 30, 2015 $ 1,539

Product Warranty Obligation (Ta

Product Warranty Obligation (Tables)	9 Months Ended
	Jun. 30, 2015
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 within current liabilities: Balance at Warranties Settlements Balance at Period April 1 issued made June 30 Three months ended June 30, 2015 $ 923 $ 276 $ (192 ) $ 1,007 Three months ended June 30, 2014 $ 972 $ 105 $ (177 ) $ 900 Balance at Warranties Settlements Balance at Period October 1 issued made June 30 Nine months ended June 30, 2015 $ 862 $ 773 $ (628 ) $ 1,007 Nine months ended June 30, 2014 $ 1,063 $ 427 $ (590 ) $ 900

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Jun. 30, 2015
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): Three months ended June 30, Nine months ended June 30, 2015 2014 2015 2014 Cost of sales $ 88 $ 92 $ 277 $ 242 Sales and marketing 283 285 932 853 Research and development 193 176 581 559 General and administrative 476 537 1,472 1,506 Stock-based compensation before income taxes 1,040 1,090 3,262 3,160 Income tax benefit (366 ) (378 ) (1,141 ) (1,081 ) Stock-based compensation after income taxes $ 674 $ 712 $ 2,121 $ 2,079
Schedule of Stock Option Activity	The following table summarizes our stock option activity (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, 2014 6,029 $10.61 Granted 810 8.12 Exercised (714 ) 8.87 Forfeited / Canceled (1,230 ) 11.59 Balance at June 30, 2015 4,895 $10.21 5.2 $ 2,209 Exercisable at June 30, 2015 3,498 $10.68 4.4 $ 984 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $9.55 as of June 30, 2015 , 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.
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: Nine months ended June 30, 2015 2014 Weighted average per option grant date fair value $2.98 $4.38 Assumptions used for option grants: Risk free interest rate 1.57% - 1.85% 1.76% - 2.02% Expected term 6.00 years 6.00 years Expected volatility 32% - 36% 39% - 40% Weighted average volatility 35% 40% Expected dividend yield 0 0
Schedule of Nonvested Restricted Stock Units	A summary of our non-vested restricted stock units as of June 30, 2015 and changes during the nine months then ended is presented below (in thousands, except per common share amounts): Number of Awards Weighted Average Grant Date Fair Value Nonvested at September 30, 2014 171 $ 9.35 Granted 490 $ 8.22 Vested (81 ) $ 9.60 Canceled (30 ) $ 7.90 Nonvested at June 30, 2015 550 $ 8.39

Restructuring (Tables)

Restructuring (Tables)	9 Months Ended
	Jun. 30, 2015
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Reserve	Below is a summary of the restructuring charges and other activity within the restructuring accrual (in thousands): 2015 Restructuring 2014 Restructuring 2013 Restructuring Employee Employee Employee Total Balance at September 30, 2013 $ — $ — $ 350 $ 350 Restructuring charge — 152 — 152 Payments — (152 ) (279 ) (431 ) Reversals — — (71 ) (71 ) Balance at September 30, 2014 — — — — Restructuring charge 518 — — 518 Payments (497 ) — — (497 ) Reversals (9 ) — — (9 ) Balance at June 30, 2015 $ 12 $ — $ — $ 12

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Numerator:
Net income (loss)	$ 2,496	$ (101)	$ 3,603	$ 1,325
Denominator:
Denominator for basic net income per common share — weighted average shares outstanding	24,938,000	25,274,000	24,525,000	25,545,000
Effect of dilutive securities:
Stock options and restricted stock units	772,000	0	560,000	420,000
Denominator for diluted net income per common share — adjusted weighted average shares	25,710,000	25,274,000	25,085,000	25,965,000
Net income per common share, basic (USD per share)	$ 0.10	$ 0	$ 0.15	$ 0.05
Net income per common share, diluted (USD per share)	$ 0.10	$ 0	$ 0.14	$ 0.05
Potentially dilutive securities excluded from computation of earnings per share	2,416,518	4,979,372	3,451,827	3,399,013

Selected Balance Sheet Data (De

Selected Balance Sheet Data (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Accounts receivable, net:
Accounts receivable	$ 24,812	$ 28,943
Less allowance for doubtful accounts	397	367
Accounts receivable, net	24,415	28,576
Inventories:
Raw materials	28,043	26,402
Work in process	615	315
Finished goods	6,032	4,530
Inventories	$ 34,690	$ 31,247

Marketable Securities (Details)

Marketable Securities (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015USD ($)Security	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)Security	Jun. 30, 2014USD ($)
Schedule of Available-for-sale Securities [Line Items]
Number of securities below amortized cost basis	25		25
Number of securities	63		63
Proceeds from maturities of marketable securities | $	$ 8,700	$ 21,600	$ 28,494	$ 35,364
Current Assets
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, next twelve months, maximum year mature			1 year
Non-current Assets
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, year two through five, maximum year mature			3 years

Marketable Securities (Fair Val

Marketable Securities (Fair Value to Amortized Cost) (Details) - USD ($) $ in Thousands		Jun. 30, 2015		Sep. 30, 2014
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		$ 47,031	[1]	$ 44,471	[2]
Available-for-sale securities, unrealized gains		17		17
Available-for-sale securities, unrealized losses		(50)		(49)
Available-for-sale marketable securities, fair value		46,998	[1]	44,439	[2]
Purchased and accrued interest		262		213
Current Assets
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		37,558	[1]	32,918	[2]
Available-for-sale securities, unrealized gains		4		3
Available-for-sale securities, unrealized losses		(35)		(23)
Available-for-sale marketable securities, fair value		37,527	[1]	32,898	[2]
Current Assets | Corporate Bonds
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		28,065	[1]	24,668	[2]
Available-for-sale securities, unrealized gains		0		1
Available-for-sale securities, unrealized losses		(31)		(22)
Available-for-sale marketable securities, fair value		28,034	[1]	24,647	[2]
Current Assets | Commercial Paper
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		3,991	[1]	3,998	[2]
Available-for-sale securities, unrealized gains		0		0
Available-for-sale securities, unrealized losses		(4)		(1)
Available-for-sale marketable securities, fair value		3,987	[1]	3,997	[2]
Current Assets | Certificates of Deposit
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		5,502	[1]	4,252	[2]
Available-for-sale securities, unrealized gains		4		2
Available-for-sale securities, unrealized losses		0		0
Available-for-sale marketable securities, fair value		5,506	[1]	4,254	[2]
Non-current Assets
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		9,473	[1]	11,553	[2]
Available-for-sale securities, unrealized gains		13		14
Available-for-sale securities, unrealized losses		(15)		(26)
Available-for-sale marketable securities, fair value		9,471	[1]	11,541	[2]
Non-current Assets | Corporate Bonds
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		3,723	[1]	2,051	[2]
Available-for-sale securities, unrealized gains		0		0
Available-for-sale securities, unrealized losses		(14)		(4)
Available-for-sale marketable securities, fair value		3,709	[1]	2,047	[2]
Non-current Assets | Certificates of Deposit
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		4,504	[1]	9,502	[2]
Available-for-sale securities, unrealized gains		13		14
Available-for-sale securities, unrealized losses		0		(22)
Available-for-sale marketable securities, fair value		4,517	[1]	$ 9,494	[2]
Non-current Assets | Government municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis	[1]	1,246
Available-for-sale securities, unrealized gains		0
Available-for-sale securities, unrealized losses		(1)
Available-for-sale marketable securities, fair value	[1]	$ 1,245
[1]	Included in amortized cost and fair value is purchased and accrued interest of $262
[2]	Included in amortized cost and fair value is purchased and accrued interest of $213.

Marketable Securities (Fair V33

Marketable Securities (Fair Value and Gross Unrealized Losses for AFS) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
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	$ 29,720	$ 30,453
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(49)	(47)
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer	5,002	748
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(1)	(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	26,499	23,475
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(44)	(26)
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer	5,002	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(1)	0
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	1,991	3,998
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(4)	(1)
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
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		2,980
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss		(20)
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer		748
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		$ (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	1,230
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(1)
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2015		Sep. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale marketable securities	$ 46,998	[1]	$ 44,439	[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	19,199		19,630
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	46,998		44,439
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
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	19,199		19,630
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
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	31,743		26,694
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
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		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	3,987		3,997
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		0
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	10,023		13,748
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
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
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	1,245
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
Estimate of Fair Value Measurement [Member] | 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	66,197		64,069
Estimate of Fair Value Measurement [Member] | Money Market Funds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	19,199		19,630
Estimate of Fair Value Measurement [Member] | Corporate Bonds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale marketable securities	31,743		26,694
Estimate of Fair Value Measurement [Member] | Commercial Paper | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale marketable securities	3,987		3,997
Estimate of Fair Value Measurement [Member] | Certificates of Deposit | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale marketable securities	10,023		$ 13,748
Estimate of Fair Value Measurement [Member] | Government municipal bonds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale marketable securities	$ 1,245
[1]	Included in amortized cost and fair value is purchased and accrued interest of $262
[2]	Included in amortized cost and fair value is purchased and accrued interest of $213.

Goodwill and Other Identifiab35

Goodwill and Other Identifiable Intangible Assets, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 77,361	$ 80,413
Accumulated amortization	(72,572)	(73,628)
Net	4,789	6,785
Purchased and Core Technology
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	45,659	45,952
Accumulated amortization	(45,510)	(45,162)
Net	149	790
License Agreements
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	0	2,440
Accumulated amortization	0	(2,440)
Net	0	0
Patents and Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	11,993	11,667
Accumulated amortization	(10,560)	(9,799)
Net	1,433	1,868
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	18,609	18,894
Accumulated amortization	(15,915)	(15,445)
Net	2,694	3,449
Non-compete Agreements
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	1,100	1,100
Accumulated amortization	(587)	(422)
Net	513	678
Order Backlog
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	0	360
Accumulated amortization	0	(360)
Net	$ 0	$ 0

Goodwill and Other Identifiab36

Goodwill and Other Identifiable Intangible Assets, Net (Amortization Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 700	$ 900	$ 2,286	$ 2,787
2015 three months	625		625
2,016	1,926		1,926
2,017	896		896
2,018	487		487
2,019	451		451
2,020	$ 168		$ 168

Goodwill and Other Identifiab37

Goodwill and Other Identifiable Intangible Assets, Net (Goodwill Rollforward) (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Goodwill [Roll Forward]
Beginning balance	$ 103,398	$ 103,569
Foreign currency translation adjustment	(901)	760
Ending balance	$ 102,497	$ 104,329

Goodwill and Other Identifiab38

Goodwill and Other Identifiable Intangible Assets, Net (Additional Information) (Details) $ in Thousands	Jun. 30, 2014industry	Jun. 30, 2015USD ($)	Sep. 30, 2014USD ($)
Goodwill [Line Items]
Market capitalization		$ 238,600
Carrying value		$ 270,643	$ 265,298
Control premium percent	35.00%
Percent fair value in excess of carrying value of goodwill		19.00%
Target companies equity benchmark	50.00%
Number of industries encompasses similar products | industry	3
Minimum
Goodwill [Line Items]
Control premium percent	30.00%
Maximum
Goodwill [Line Items]
Control premium percent	40.00%

Income Taxes (Unrecognized Tax

Income Taxes (Unrecognized Tax Benefits) (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2015USD ($)
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, beginning balance	$ 2,301
Increases related to Prior year income tax positions	110
Decreases related to Prior year income tax positions	(255)
Decreases related to Settlements	(74)
Decreases related to Expiration of statute of limitations	(543)
Unrecognized tax benefits, ending balance	$ 1,539

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Income tax provision (benefit)	$ 795	$ (213)	$ 814	$ (1,454)
Income tax expense (benefit) specific to the period			(900)	$ (1,400)
Unrecognized tax benefits that would impact effective tax rate	1,500		1,500
Expected change in unrecognized tax benefits, minimum	200		200
Income tax penalties and interest accrued	300		300		$ 400
Accumulated undistributed foreign earnings	28,800		28,800
Income Tax Contingency [Line Items]
Unrecognized tax benefits	1,539		1,539		$ 2,301
Minimum
Income Tax Contingency [Line Items]
Estimate of unrecognized deferred tax liability	900		900
Maximum
Income Tax Contingency [Line Items]
Estimate of unrecognized deferred tax liability	1,900		1,900
Non-current income taxes payable
Income Tax Contingency [Line Items]
Unrecognized tax benefits	1,100		1,100
Non-current deferred tax assets
Income Tax Contingency [Line Items]
Unrecognized tax benefits	$ 400		$ 400

Product Warranty Obligation (De

Product Warranty Obligation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Product Warranties Disclosures [Abstract]
Warranty period, minimum			1 year
Warranty period, maximum			5 years
Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 923	$ 972	$ 862	$ 1,063
Warranties issued	276	105	773	427
Settlements made	(192)	(177)	(628)	(590)
Ending balance	$ 1,007	$ 900	$ 1,007	$ 900

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jan. 27, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from stock option plan transactions	$ 6,332	$ 3,336
Total intrinsic value of all options exercised	$ 800	500
Forfeiture rate	6.00%
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost nonvested awards	$ 4,200
Weighted average period, unrecognized compensation cost, nonvested awards	2 years 10 months 24 days
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost nonvested restricted stock units	$ 3,500
Weighted average period, unrecognized compensation cost, nonvested awards	1 year 8 months 12 days
The 2014 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized			2,250,000
Number of shares available for future grants	1,317,996
The 2014 Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Expiration period	8 years
The Purchase Plan | The Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of continuous days of service	90 days
Number of hours per week employed	20 hours
Percent of market value	85.00%
Offering period	3 months
Employee contributions	$ 700	$ 800
Common shares issued to employees	97,383	92,321
Shares available for future issuance	643,995
Director | The 2014 Plan | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Executives and Employees | The 2014 Plan | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years

Stock-Based Compensation (Stock

Stock-Based Compensation (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 1,040	$ 1,090	$ 3,262	$ 3,160
Income tax benefit	(366)	(378)	(1,141)	(1,081)
Stock-based compensation after income taxes	674	712	2,121	2,079
Cost of Sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	88	92	277	242
Sales and Marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	283	285	932	853
Research and Development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	193	176	581	559
General and Administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 476	$ 537	$ 1,472	$ 1,506

Stock-Based Compensation (Optio

Stock-Based Compensation (Options and Common Shares Reserved for Grant) (Details) - Jun. 30, 2015 - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		Total
Options Outstanding [Roll Forward]
Options Outstanding, Beginning Balance (in shares)		6,029
Options Outstanding, Granted (in shares)		810
Options Outstanding, Exercised (in shares)		(714)
Options Outstanding, Forfeited / Canceled (in shares)		(1,230)
Options Outstanding, Ending Balance (in shares)		4,895
Options Outstanding, Exercisable (in shares)		3,498
Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price, Beginning Balance		$ 10.61
Weighted Average Exercise Price, Granted		8.12
Weighted Average Exercise Price, Exercised		8.87
Weighted Average Exercise Price, Forfeited / Canceled		11.59
Weighted Average Exercise Price, Ending Balance		10.21
Weighted Average Exercise Price, Exercisable		$ 10.68
Weighted Average Remaining Contractual Term [Abstract]
Weighted Average Remaining Contractual Term, Outstanding		5 years 2 months 12 days
Weighted Average Remaining Contractual Term, Exercisable		4 years 4 months 24 days
Aggregate Intrinsic Value [Abstract]
Aggregate Intrinsic Value, Outstanding	[1]	$ 2,209
Aggregate Intrinsic Value, Exercisable	[1]	$ 984
Closing Stock Price		$ 9.55
[1]	The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $9.55 as of June 30, 2015, 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.

Stock-Based Compensation (Fair

Stock-Based Compensation (Fair Value Assumptions) (Details) - Stock Options - $ / shares	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average per option grant date fair value	$ 2.98	$ 4.38
Assumptions Used For Options Grants [Abstract]
Risk free interest rate, minimum	1.57%	1.76%
Risk free interest rate, maximum	1.85%	2.02%
Expected term	6 years	6 years
Expected volatility rate, minimum	32.00%	39.00%
Expected volatility rate, maximum	36.00%	40.00%
Weighted average volatility	35.00%	40.00%
Expected dividend yield	0.00%	0.00%

Stock-Based Compensation (Non-V

Stock-Based Compensation (Non-Vested Options) (Details) - 9 months ended Jun. 30, 2015 - Restricted Stock Units - $ / shares shares in Thousands	Total
Nonvested Number of Restricted Stock Units [Roll Forward]
Number of Restricted Stock Units, Beginning Balance	171
Number of Restricted Stock Units, Granted	490
Number of Restricted Stock Units, Vested	(81)
Number of Restricted Stock Units, Canceled	(30)
Number of Restricted Stock Units, Ending Balance	550
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	$ 9.35
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Granted	8.22
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested	9.60
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Canceled	7.90
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance	$ 8.39

Common Stock Repurchase (Detail

Common Stock Repurchase (Details) - USD ($) $ in Millions	1 Months Ended	9 Months Ended
	Oct. 31, 2014	Jun. 30, 2015	Oct. 28, 2014
Common Stock Repurchase [Abstract]
Stock repurchase program, authorized amount			$ 15
Shares repurchased	287,787
Shares repurchased, value	$ 2.3
Shares Forfeited for Withholding Tax Obligations for Share Based Compensation		9,371
Amount of Shares Forfeited Related to Tax Withholding for Share-based Compensation		$ 0.1

Restructuring (Details)

Restructuring (Details) $ in Thousands	Feb. 20, 2015USD ($)employee	Jan. 22, 2015USD ($)employee	Oct. 31, 2013employee	Sep. 27, 2013employee	Jun. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2013USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charge					$ 518	$ 152
Payments for Restructuring					(497)	(431)
Reversals of Restructuring Charge					(9)	(71)
Restructuring Reserve					12	0	$ 350
Employee Termination Costs | Fiscal 2015 Restructuring
Restructuring Cost and Reserve [Line Items]
Restructuring charge					518	0
Payments for Restructuring					(497)	0
Reversals of Restructuring Charge					(9)	0
Restructuring Reserve					12	0	0
Employee Termination Costs | Fiscal 2014 Restructuring
Restructuring Cost and Reserve [Line Items]
Restructuring charge					0	152
Payments for Restructuring					0	(152)
Reversals of Restructuring Charge					0	0
Restructuring Reserve					0	0	0
Employee Termination Costs | Fiscal 2013 Restructuring
Restructuring Cost and Reserve [Line Items]
Restructuring charge					0	0
Payments for Restructuring					0	(279)
Reversals of Restructuring Charge					0	(71)
Restructuring Reserve					$ 0	0	350
UNITED STATES | Fiscal 2015 Restructuring
Restructuring Cost and Reserve [Line Items]
Number of employees eliminated | employee	21
UNITED STATES | Fiscal 2013 Restructuring
Restructuring Cost and Reserve [Line Items]
Number of employees eliminated | employee				15
UNITED STATES | Employee Termination Costs | Fiscal 2015 Restructuring
Restructuring Cost and Reserve [Line Items]
Restructuring charge	$ 300
UNITED STATES | Employee Termination Costs | Fiscal 2013 Restructuring
Restructuring Cost and Reserve [Line Items]
Restructuring charge							$ 400
INDIA | Fiscal 2015 Restructuring
Restructuring Cost and Reserve [Line Items]
Number of employees eliminated | employee		38
INDIA | Fiscal 2014 Restructuring
Restructuring Cost and Reserve [Line Items]
Number of employees eliminated | employee			40
INDIA | Employee Termination Costs | Fiscal 2015 Restructuring
Restructuring Cost and Reserve [Line Items]
Restructuring charge		$ 200
INDIA | Employee Termination Costs | Fiscal 2014 Restructuring
Restructuring Cost and Reserve [Line Items]
Restructuring charge						$ 200