Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Nov. 23, 2015 | Mar. 31, 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-K | ||
Document Period End Date | Sep. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 25,299,260 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 246,475,812 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenue: | |||
Hardware product | $ 195,497 | $ 172,846 | $ 173,078 |
Service | 17,361 | 19,855 | 22,303 |
Total revenue | 212,858 | 192,701 | 195,381 |
Cost of sales: | |||
Cost of hardware product | 101,155 | 85,737 | 82,276 |
Cost of service | 13,672 | 16,480 | 12,982 |
Total cost of sales | 114,827 | 102,217 | 95,258 |
Gross profit | 98,031 | 90,484 | 100,123 |
Operating expenses: | |||
Sales and marketing | 39,544 | 40,576 | 40,513 |
Research and development | 32,047 | 29,789 | 30,327 |
General and administrative | 19,514 | 19,913 | 21,423 |
Restructuring charges, net | 509 | 81 | 313 |
Total operating expenses | 91,614 | 90,359 | 92,576 |
Operating income | 6,417 | 125 | 7,547 |
Other income, net: | |||
Interest income | 218 | 176 | 210 |
Interest expense | (4) | (5) | (42) |
Other income, net | 2,014 | 501 | 523 |
Total other income, net | 2,228 | 672 | 691 |
Income before income taxes | 8,645 | 797 | 8,238 |
Income tax provision (benefit) | 2,057 | (954) | 2,433 |
Net income | $ 6,588 | $ 1,751 | $ 5,805 |
Net income per common share: | |||
Basic (USD per share) | $ 0.27 | $ 0.07 | $ 0.22 |
Diluted (USD per share) | $ 0.26 | $ 0.07 | $ 0.22 |
Weighted average common shares: | |||
Basic (shares) | 24,645 | 25,345 | 25,956 |
Diluted (shares) | 25,227 | 25,730 | 26,237 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 6,588 | $ 1,751 | $ 5,805 | |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation adjustment | (4,323) | (2,713) | (1,826) | |
Change in net unrealized (loss) gain on investments | (21) | 43 | (63) | |
Less income tax benefit (provision) | 7 | (17) | 24 | |
Reclassification of realized loss on investments included in net income | [1] | 1 | 0 | 0 |
Other comprehensive loss, net of tax | (4,336) | (2,687) | (1,865) | |
Comprehensive income (loss) | $ 2,252 | $ (936) | $ 3,940 | |
[1] | Recorded in Other income, net in our Consolidated Statements of Operations. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 45,018 | $ 47,490 |
Marketable securities | 47,191 | 32,898 |
Accounts receivable, net | 29,205 | 28,576 |
Inventories | 31,877 | 31,247 |
Deferred tax assets | 3,379 | 3,221 |
Other | 3,515 | 4,249 |
Total current assets | 160,185 | 147,681 |
Marketable securities, long-term | 13,626 | 11,541 |
Property, equipment and improvements, net | 14,357 | 13,231 |
Identifiable intangible assets, net | 4,179 | 6,785 |
Goodwill | 102,097 | 103,398 |
Deferred tax assets | 5,666 | 7,383 |
Other | 250 | 440 |
Total assets | 300,360 | 290,459 |
Current liabilities: | ||
Accounts payable | 6,723 | 10,451 |
Income taxes payable | 828 | 0 |
Accrued compensation | 11,502 | 8,133 |
Other | 4,136 | 3,170 |
Total current liabilities | 23,189 | 21,754 |
Income taxes payable | 1,546 | 2,724 |
Deferred tax liabilities | 135 | 272 |
Other noncurrent liabilities | 552 | 411 |
Total liabilities | $ 25,422 | $ 25,161 |
Commitments and Contingencies (see Notes 15 & 16) | ||
Stockholders’ equity: | ||
Preferred stock, $.01 par value; 2,000,000 shares authorized; none issued and outstanding | $ 0 | $ 0 |
Common stock, $.01 par value; 60,000,000 shares authorized; 31,534,198 and 30,703,895 shares issued | 315 | 307 |
Additional paid-in capital | 227,367 | 218,689 |
Retained earnings | 124,404 | 117,816 |
Accumulated other comprehensive loss | (22,613) | (18,277) |
Treasury stock, at cost, 6,487,248 and 6,313,937 shares | (54,535) | (53,237) |
Total stockholders’ equity | 274,938 | 265,298 |
Total liabilities and stockholders’ equity | $ 300,360 | $ 290,459 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 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 | 31,534,198 | 30,703,895 |
Treasury stock, shares | 6,487,248 | 6,313,937 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Operating activities: | |||
Net income | $ 6,588 | $ 1,751 | $ 5,805 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of property, equipment and improvements | 2,949 | 3,557 | 3,461 |
Amortization of identifiable intangible assets | 2,910 | 3,589 | 4,416 |
Stock-based compensation | 4,301 | 4,330 | 3,773 |
Excess tax benefits from stock-based compensation | 0 | (44) | (67) |
Deferred income tax benefit | (769) | (2,783) | (2,055) |
Gain on insurance settlement related to property and equipment | (1,375) | 0 | 0 |
Bad debt/product return provision | 357 | 98 | 811 |
Inventory obsolescence | 1,284 | 860 | 1,258 |
Intangible impairment charge | 0 | 0 | 361 |
Restructuring charges, net | 509 | 81 | 313 |
Other | 87 | 3 | (85) |
Changes in operating assets and liabilities (net of acquisition): | |||
Accounts receivable | (1,794) | (2,730) | (2,368) |
Inventories | (1,913) | (5,966) | (2,972) |
Other assets | 241 | 210 | (212) |
Income taxes | 387 | (1,408) | (2,634) |
Accounts payable | (3,769) | 970 | 1,413 |
Accrued expenses | 4,081 | (709) | 530 |
Net cash provided by operating activities | 14,074 | 1,809 | 11,748 |
Investing activities: | |||
Purchase of marketable securities | (54,427) | (27,420) | (67,159) |
Proceeds from maturities of marketable securities | 38,028 | 47,420 | 63,089 |
Acquisition of businesses, net of cash acquired | 0 | 0 | (12,919) |
Proceeds from insurance settlement related to property and equipment | 1,400 | 0 | 0 |
Proceeds from sale of property and equipment | 45 | 0 | 0 |
Proceeds from sale of investment | 0 | 0 | 136 |
Purchase of property, equipment, improvements and certain other intangible assets | (4,500) | (3,421) | (2,886) |
Net cash (used in) provided by in investing activities | (19,454) | 16,579 | (19,739) |
Financing activities: | |||
Excess tax benefits from stock-based compensation | 0 | 44 | 67 |
Proceeds from stock option plan transactions | 6,559 | 3,689 | 2,193 |
Proceeds from employee stock purchase plan transactions | 925 | 1,009 | 1,008 |
Purchase of common stock | (2,339) | (15,702) | (14,058) |
Net cash provided by (used in) financing activities | 5,145 | (10,960) | (10,790) |
Effect of exchange rate changes on cash and cash equivalents | (2,237) | (1,258) | (145) |
Net (decrease) increase in cash and cash equivalents | (2,472) | 6,170 | (18,926) |
Cash and cash equivalents, beginning of period | 47,490 | 41,320 | 60,246 |
Cash and cash equivalents, end of period | 45,018 | 47,490 | 41,320 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 4 | 5 | 42 |
Income taxes paid, net | 1,296 | 3,197 | 6,300 |
Supplemental schedule of non-cash investing and financing activities: | |||
Accrual for capitalized intangible asset | 17 | 0 | 42 |
Issuance of common stock for business acquisition | 0 | 0 | 6,741 |
Accrual for purchase of common stock | $ 0 | $ 100 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | |
Beginning balance at Sep. 30, 2012 | $ 270,834 | $ 293 | $ (25,489) | $ 199,495 | $ 110,260 | $ (13,725) | |
Beginning balance (in shares) at Sep. 30, 2012 | 29,269 | 3,356 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 5,805 | 5,805 | |||||
Other comprehensive loss | (1,865) | (1,865) | |||||
Employee stock purchase issuances (in shares) | (128) | ||||||
Employee stock purchase issuances | 1,008 | $ 1,030 | (22) | ||||
Repurchase of common stock (in shares) | 1,481 | ||||||
Repurchase of common stock | (14,058) | $ (14,058) | |||||
Issuance of stock upon exercise of stock options (in shares) | 280 | ||||||
Issuance of stock upon exercise of stock options | 2,193 | $ 3 | 2,190 | ||||
Tax impact from equity awards | (188) | (188) | |||||
Acquisition of Etherios, Inc. (in shares) | 715 | ||||||
Acquisition of Etherios, Inc. | 6,741 | $ 7 | 6,734 | ||||
Stock-based compensation expense | 3,773 | 3,773 | |||||
Ending balance (in shares) at Sep. 30, 2013 | 30,264 | 4,709 | |||||
Ending balance at Sep. 30, 2013 | 274,243 | $ 303 | $ (38,517) | 211,982 | 116,065 | (15,590) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,751 | 1,751 | |||||
Other comprehensive loss | (2,687) | (2,687) | |||||
Employee stock purchase issuances (in shares) | (129) | ||||||
Employee stock purchase issuances | 1,009 | $ 1,082 | (73) | ||||
Repurchase of common stock (in shares) | 1,734 | ||||||
Repurchase of common stock | (15,802) | $ (15,802) | |||||
Issuance of stock under stock award plans (in shares) | 440 | ||||||
Issuance of stock under stock award plans | 3,689 | $ 4 | 3,685 | ||||
Tax impact from equity awards | (1,235) | (1,235) | |||||
Stock-based compensation expense | 4,330 | 4,330 | |||||
Ending balance (in shares) at Sep. 30, 2014 | 30,704 | 6,314 | |||||
Ending balance at Sep. 30, 2014 | 265,298 | $ 307 | $ (53,237) | 218,689 | 117,816 | (18,277) | |
Beginning balance at Jun. 30, 2014 | 273,010 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | [1] | 426 | |||||
Ending balance (in shares) at Sep. 30, 2014 | 30,704 | 6,314 | |||||
Ending balance at Sep. 30, 2014 | 265,298 | $ 307 | $ (53,237) | 218,689 | 117,816 | (18,277) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 6,588 | 6,588 | |||||
Other comprehensive loss | (4,336) | (4,336) | |||||
Employee stock purchase issuances (in shares) | (124) | ||||||
Employee stock purchase issuances | 925 | $ 1,041 | (116) | ||||
Repurchase of common stock (in shares) | 297 | ||||||
Repurchase of common stock | (2,339) | $ (2,339) | |||||
Issuance of stock under stock award plans (in shares) | 830 | ||||||
Issuance of stock under stock award plans | 6,559 | $ 8 | 6,551 | ||||
Tax impact from equity awards | (2,058) | (2,058) | |||||
Stock-based compensation expense | 4,301 | 4,301 | |||||
Ending balance (in shares) at Sep. 30, 2015 | 31,534 | 6,487 | |||||
Ending balance at Sep. 30, 2015 | 274,938 | $ 315 | $ (54,535) | 227,367 | 124,404 | (22,613) | |
Beginning balance at Jun. 30, 2015 | 270,643 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | [1],[2],[3] | 2,985 | |||||
Ending balance (in shares) at Sep. 30, 2015 | 31,534 | 6,487 | |||||
Ending balance at Sep. 30, 2015 | $ 274,938 | $ 315 | $ (54,535) | $ 227,367 | $ 124,404 | $ (22,613) | |
[1] | During fiscal 2015 and 2014, we recorded net tax benefits of $0.9 million and $1.4 million, respectively. We recorded a benefit of $0.5 million in the first quarter of fiscal 2015 resulting from the reinstatement of the research and development tax credit for calendar year 2014, reversal of income tax reserves due to the expiration of the statute of limitations from various U.S. and foreign tax jurisdictions and reversal of tax reserves due to the resolution of tax audits. In the third quarter of fiscal 2015, we recorded a tax benefit of $0.4 million primarily due to the reversal of reserves for state research and development tax credits and transfer pricing, partially offset by an adjustment of the state rate on net deferred tax assets. We recorded net tax benefits of $0.2 million in the first quarter of fiscal 2014 resulting from the release of income tax reserves due to the expiration of the statute of limitations from various U.S. and foreign tax jurisdictions. During the second quarter of fiscal 2014, we recorded a tax benefit of $1.1 million resulting from re-measurement and reversal of certain income tax reserves as a result of the conclusion of a federal income tax audit for fiscal 2012. In the third quarter of fiscal 2014, we recorded a tax benefit of $0.1 million primarily for a valuation allowance reversal associated with the reassessment of state research and development tax credits. | ||||||
[2] | During fiscal 2015, we recorded a gain of $1.4 million from the settlement of a property and casualty insurance claim related to the replacement of our capital equipment destroyed in the fire at our subcontract manufacturer's location. We recorded $1.0 million ($0.6 million after tax) during the second quarter of fiscal 2015 and $0.4 million ($0.3 million after tax) during the third quarter of fiscal 2015. | ||||||
[3] | In the second quarter of fiscal 2015, we recorded a business restructuring accrual of $0.5 million ($0.3 million after tax). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Description We are a leading provider of Internet of Things (IoT) networking hardware products and solutions that enable the connection, monitoring and control of local or remote physical assets by electronic means. These networking products and solutions can connect communication hardware to a physical asset, convey information about the asset’s status and performance to a computer system and then use that information to improve or automate one or more processes. These products and solutions are deployed via both wired and, ever increasingly wireless networks. Our solutions are deployed by a wide range of businesses and institutions. Any business that utilizes a significant number of devices, whose operation could benefit from remote monitoring or control, may realize benefits from IoT networking. Principles of Consolidation The consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Cash Equivalents Cash equivalents consist of money market accounts and other highly liquid investments purchased with an original maturity of three months or less. The carrying amounts approximate fair value due to the short maturities of these investments. Marketable Securities Marketable securities consist of certificates of deposit, commercial paper, corporate bonds and government municipal bonds. All marketable securities are accounted for as available-for-sale and are carried at fair value on our consolidated balance sheets with unrealized gains and losses recorded in accumulated other comprehensive loss within stockholders’ equity. In order to estimate the fair value for each security in our investment portfolio, we obtain quoted market prices and trading activity for each security where available. We obtain relevant information from our investment advisor and, if warranted, also may review the financial solvency of certain security issuers. We regularly monitor and evaluate the value of our marketable securities. When assessing marketable securities for other-than-temporary declines in value, we consider several factors. These factors include: how significant the decline in value is as a percentage of the original cost, how long the market value of the investment has been less than its original cost, the underlying factors contributing to a decline in the prices of securities in a single asset class, the performance of the issuer’s stock price in relation to the stock price of its competitors within the industry, expected market volatility, analyst recommendations, the views of external investment managers, any news or financial information that has been released specific to the investee and the outlook for the overall industry in which the issuer operates. If events and circumstances indicate that a decline in the value of a security has occurred and is other-than-temporary, we would record a charge to other income (expense). Accounts Receivable Accounts receivable are stated at the amount we expect to collect, which is net of an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. The following factors are considered when determining the collectability of specific customer accounts: customer creditworthiness, past transaction history with the customer, and changes in customer payment terms or practices. In addition, overall historical collection experience, current economic industry trends, and a review of the current status of trade accounts receivable are considered when determining the required allowance for doubtful accounts. Based on our assessment, we provide for estimated uncollectible amounts through a charge to earnings and a credit to our allowance for doubtful accounts. Balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and a credit to accounts receivable. Inventories Inventories are stated at the lower of cost or fair market value, with cost determined using the first-in, first-out method. Appropriate consideration is given to deterioration, obsolescence and other factors in evaluating fair market value. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property, Equipment and Improvements, Net Property, equipment and improvements are carried at cost, net of accumulated depreciation. Depreciation is provided by charges to operations using the straight-line method over the estimated asset useful lives. Furniture and fixtures and other equipment are depreciated over a period of three to five years. Building improvements and buildings are depreciated over ten and thirty-nine years, respectively. Expenditures for maintenance and repairs are charged to operations as incurred, while major renewals and betterments are capitalized. The assets and related accumulated depreciation accounts are adjusted for asset retirements and disposals with the resulting gain or loss included in operations. Identifiable Intangible Assets Purchased proven technology, license agreements, covenants not to compete and other identifiable intangible assets are recorded at fair value when acquired in a business acquisition, or at cost when not purchased in a business acquisition. Purchased in-process research and development costs (IPR&D) related to business combinations are capitalized and amortized once placed in service. All other identifiable intangible assets are amortized on either a straight-line basis over their estimated useful lives of three to thirteen years or based on the pattern in which the asset is consumed. Useful lives for identifiable intangible assets are estimated at the time of acquisition based on the periods of time from which we expect to derive benefits from the identifiable intangible assets. Amortization of purchased and core technology is included in cost of product in the Consolidated Statements of Operations. Amortization of all other acquired identifiable intangible assets is charged to operating expenses as a component of general and administrative expense. Identifiable intangible assets are reviewed for impairment annually or whenever events or circumstances indicate that undiscounted expected future cash flows are not sufficient to recover the carrying value amount. We measure impairment loss by utilizing an undiscounted cash flow valuation technique using fair values indicated by the income approach. Impairment losses, if any, would be recorded in the period the impairment is identified. During the fourth quarter of fiscal 2013, we recorded an impairment charge of $0.4 million which was included in general and administrative expense on our Consolidated Statements of Operations for our single operating and reporting segment (see Note 4 to our Consolidated Financial Statements). There was an immaterial amount of impairments identified in fiscal 2015 and no impairments identified during fiscal 2014. Goodwill Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is tested for impairment on an annual basis as of June 30, or more frequently if events or circumstances occur which could indicate impairment. The calculation of goodwill impairment requires us to make assumptions about the fair value of our one reporting unit, which historically has been approximated by using our market capitalization plus a control premium. Control premium assumptions require judgment and actual results may differ from assumed or estimated amounts. 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. 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 the 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. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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% to 40% . We re-evaluated the data and concluded that a 35% control premium continues to best represent the amount an investor would likely pay, over and above market capitalization, in order to obtain a controlling interest given the economic conditions at June 30, 2015. Based on our industry knowledge, including recent industry merger and acquisition activity, we concluded that a 35% control premium continues to be appropriate to use for our June 30, 2015 goodwill impairment assessment. 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% resulted in a fair value in excess of our carrying value by a margin of 19% . As a result, no goodwill impairment was indicated and we were not required to complete the second step of the goodwill impairment analysis. No goodwill impairment charges were recorded. During the fourth quarter of fiscal 2015 , we assessed various qualitative factors to determine whether or not an additional goodwill impairment assessment was required as of September 30, 2015 , and we concluded that no additional impairment assessment was required. As of June 30, 2014, our market capitalization was $235.8 million compared to our carrying value of $273.0 million . Our market capitalization plus our estimated control premium of 35% resulted in a fair value in excess of our carrying value by a margin of 17% and therefore no impairment was indicated. We continue to monitor our stock price on a daily basis. If the stock price remained below certain thresholds for a significant period of time, we would complete an interim impairment assessment. We also monitor other events or circumstances that could have a significant impact on our operations. If one of these events or circumstances were to occur, we would evaluate whether an interim goodwill impairment assessment should be completed. 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 revenue and profits and our ability to execute on our strategies. In addition, our control premium could decline due to changes in economic conditions, in the technology industry, in the financial markets or more generally. An impairment could have a material effect on our consolidated balance sheet and results of operations. We have had no goodwill impairment losses since the adoption of Accounting Standards Codification (ASC) 350, Intangibles-Goodwill and Others, in fiscal 2003. Warranties In general, we warrant our hardware products to be free from defects in material and workmanship under normal use and service. The warranty periods generally range from one to five years. We typically have the option to either repair or replace hardware products we deem defective with regard to material or workmanship. Estimated warranty costs are accrued in the period that the related revenue is recognized based upon an estimated average per unit repair or replacement cost applied to the estimated number of units under warranty. These estimates are based upon historical warranty incidents and are evaluated on an ongoing basis to ensure the adequacy of the warranty accrual. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue Recognition We recognize revenue in accordance with authoritative guidance issued by FASB related to revenue recognition. Hardware product revenue as a percentage of total revenue was 91.8% , 89.7% and 88.6% in fiscal 2015 , 2014 and 2013 , respectively. We recognize hardware product revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, collectability is reasonably assured and there are no post-delivery obligations, other than warranty. Under these criteria, product revenue generally is recognized upon shipment of product to customers. Sales to authorized domestic and foreign distributors and Direct / OEMs are made with certain rights of return and price adjustment provisions. Estimated reserves for future returns and pricing adjustments are established by us based on an analysis of historical patterns of returns and price adjustments as well as an analysis of authorized returns compared to received returns and distribution sales for the current period. Estimated reserves for future returns and price adjustments are charged against revenue in the same period as the corresponding revenue is recorded. Service revenue as a percentage of total revenue represented 8.2% , 10.3% and 11.4% in fiscal 2015 , 2014 and 2013 , respectively. Our service revenue is derived primarily from professional and engineering services performed by our Etherios customer relationship management (CRM) services and our wireless design services. We also have some service revenue that is derived from our Digi Device Cloud, which is a platform-as-a-service (PaaS) offering in which customers pay for services consumed in terms of devices being managed and monitored, or as a monthly service fee for access to information. In addition, we have small amounts of revenue from our enterprise support services. We recognize service revenue from our Etherios CRM services, wireless design services, and Device Cloud based upon performance, including final product delivery and customer acceptance. In addition, we recognize small amounts of revenue from and enterprise support services which is recognized over the life of the contract, and training as the services are performed. Research and Development Research and development costs are expensed when incurred. Research and development costs include compensation, allocation of corporate costs, depreciation, utilities, professional services and prototypes. Software development costs are expensed as incurred until the point that technological feasibility and proven marketability of the product are established. To date, the time period between the establishment of technological feasibility and completion of software development has been short, and no significant development costs have been incurred during that period. Accordingly, we have not capitalized any software development costs to date. Income Taxes Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Income tax expense is equal to the tax payable for the period and the change during the period in deferred tax assets and liabilities and also changes in income tax reserves. Stock-Based Compensation Stock-based compensation expense represents the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. This cost must be recognized over the period during which an employee is required to provide the service (usually the vesting period). Foreign Currency Translation Financial position and results of operations of our international subsidiaries are measured using local currencies as the functional currency, except for our Singapore location which uses the U.S. Dollar as its local currency. Assets and liabilities of these operations are translated at the exchange rates in effect at the end of each reporting period. For our larger international subsidiaries, statements of operations accounts are translated at the daily rate. For all other international subsidiaries, our statements of operations accounts are translated at the weighted average rates of exchange prevailing during each reporting period. Translation adjustments arising from the use of differing currency exchange rates from period to period are included in accumulated other comprehensive loss in stockholders’ equity. Gains and losses on foreign currency exchange transactions, as well as translation gains or losses on transactions denominated in currencies other than an entity’s functional currency, are reflected in the statement of operations. During fiscal 2015 , 2014 and 2013 , there were net transaction gains of $0.6 million , 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) $0.5 million and $0.4 million , respectively, that were recorded in other income (expense). We manage our net asset or net liability position for U.S. dollar accounts in our foreign locations to reduce our foreign currency risk. We have not implemented a formal hedging strategy. Net Income Per Common Share Basic net income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares of our stock result from dilutive common stock options and restricted stock units. We use the treasury stock method to calculate the weighted-average shares used in the diluted earnings per share computation. Under the treasury stock method, the proceeds from exercise of an option, the amount of compensation cost, if any, for future service that we have not yet recognized, and the amount of estimated tax benefits that would be recorded in paid-in capital, if any, when the option is exercised are assumed to be used to repurchase shares in the current period. The following table is a reconciliation of the numerators and denominators in the net income per common share calculations (in thousands, except per common share data): Fiscal years ended September 30, 2015 2014 2013 Numerator: Net income $ 6,588 $ 1,751 $ 5,805 Denominator: Denominator for basic net income per common share — weighted average shares outstanding 24,645 25,345 25,956 Effect of dilutive securities: Stock options and restricted stock units 582 385 281 Denominator for diluted net income per common share — adjusted weighted average shares 25,227 25,730 26,237 Net income per common share, basic $ 0.27 $ 0.07 $ 0.22 Net income per common share, diluted $ 0.26 $ 0.07 $ 0.22 Because their effect would be anti-dilutive at period end, certain potentially dilutive shares related to stock options to purchase common shares were excluded in the above computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of our common shares. At September 30, 2015 , 2014 and 2013 , such excluded stock options were 3,016,911 , 3,284,993 and 3,939,541 , respectively. Use of Estimates and Risks and Uncertainties The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates that could significantly affect our results of operations or financial condition involve the assignment of fair values upon acquisition of goodwill and other intangible assets and testing for impairment; the determination of our allowance for doubtful accounts and reserve for future returns and pricing adjustments; the estimation of our inventory obsolescence, warranty reserve, income tax reserves and other contingencies. Comprehensive Income (Loss) Our comprehensive income (loss) is comprised of net income, foreign currency translation adjustments and unrealized gains and losses on available-for-sale marketable securities, which are charged or credited to the accumulated other comprehensive loss account in stockholders’ equity. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Recent Accounting Developments 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 was effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. We adopted this guidance during the fiscal quarter ended December 31, 2014, resulting in a reclassification of $0.4 million of unrecognized tax benefits to noncurrent deferred tax assets. 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 2013-05 was effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. We adopted this guidance during the fiscal quarter ended December 31, 2014. There was no impact on our condensed consolidated financial statements as we have not sold any foreign entities for which we hold a controlling financial interest. Not Yet Adopted In September 2015, FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments." To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments in this update eliminate the requirement to retrospectively account for those adjustments. The amendments in this update are effective for fiscal years beginning after December 15, 2015, including interim periods within those years, which for us will be the first fiscal quarter ending December 31, 2016. Earlier application is permitted for financial statements that have not been issued. We are currently evaluating the impact of the adoption of ASU 2015-16. In July 2015, FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory." This provision would require inventory that was previously recorded using first-in, first-out (FIFO) to lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance is effective for fiscal years beginning after December 15, 2016 and interim periods within those years, which for us will be the first fiscal quarter ending December 31, 2017. The amendments in this guidance should be applied prospectively with earlier application permitted as of the beginning of an interim or annual period. We are currently evaluating the impact of the adoption of ASU 2015-11 and whether it would have a material impact on our consolidated financial statements. In April 2015, 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 August 2014, FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern.” This guidance requires management to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. These amendments are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter, which for us, will be the fourth fiscal quarter ended September 30, 2017. Early adoption is permitted. While we are evaluating the impact of the adoption of ASU 2014-15, we do not expect it to have an impact on our consolidated financial statements. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 August 2015, the FASB issued ASU 2015-14 "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date" which approved a one-year deferral of the effective date of ASU 2014-09. As a result of this deferral, ASU 2014-09 is effective for our fiscal 2019, including interim periods within that reporting period. The FASB also agreed to allow us to choose to adopt the standard effective for our fiscal 2018. We are assessing the adoption date and potential impact of adopting this ASU on our consolidated financial statements and related disclosures. |
Acquisition
Acquisition | 12 Months Ended |
Sep. 30, 2015 | |
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 in accordance with the terms of the stock purchase agreement until eighteen months after closing. These amounts were held in escrow to satisfy any claims that representations and warranties in the stock purchase agreement were not true. Ultimately, no claims were made and the escrow agent released these funds 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 were 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 was 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 signaled its intent for the Service Cloud to be used as a means to monitor machines, we determined 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 Statements 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. Because the Etherios acquisition was not material to our consolidated results of operations or financial position, pro forma financial information was not presented. On October 23, 2015, we entered into a stock purchase agreement with West Monroe Partners, LLC, in which they acquired all of the outstanding capital stock of our wholly owned subsidiary, Etherios, Inc. (see Note 18 to our Consolidated Financial Statements). |
Goodwill and other Identifiable
Goodwill and other Identifiable Intangible Assets | 12 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET | GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET Identifiable Intangible Assets, Net Amortizable identifiable intangible assets, net as of September 30, 2015 and 2014 are comprised of the following (in thousands): September 30, 2015 September 30, 2014 Gross carrying amount Accum. amort. Net Gross carrying amount Accum. amort. Net Purchased and core technology $ 45,449 $ (45,424 ) $ 25 $ 45,952 $ (45,162 ) $ 790 License agreements 18 (4 ) 14 2,440 (2,440 ) — Patents and trademarks 11,817 (10,568 ) 1,249 11,667 (9,799 ) 1,868 Customer relationships 18,490 (16,057 ) 2,433 18,894 (15,445 ) 3,449 Non-compete agreements 1,100 (642 ) 458 1,100 (422 ) 678 Order backlog — — — 360 (360 ) — Total $ 76,874 $ (72,695 ) $ 4,179 $ 80,413 $ (73,628 ) $ 6,785 During the fourth quarter of fiscal 2013, we recorded an impairment charge of $0.4 million in general and administrative expense on our Consolidated Statements of Operations for our single operating and reporting segment. Management determined to end-of-life certain product lines acquired in connection with the MobiApps acquisition due to various factors impacting the viability of these product lines. These products lines utilized certain identifiable intangible technology assets which were part of the assets purchased at the time of acquisition. The impairment charge consisted of $0.2 million for patented satellite technology and $0.1 million relating to an associated license agreement as the net carrying values of these intangible assets were not recoverable and the undiscounted future cash flows did not exceed the net carrying value of the assets. We also wrote off $0.1 million of various patents that were abandoned. Amortization expense for fiscal years 2015 , 2014 and 2013 is as follows (in thousands): Fiscal year Total 2015 $ 2,910 2014 $ 3,589 2013 $ 4,416 Estimated amortization expense for the next five years is as follows (in thousands): Fiscal year Total 2016 $ 1,944 2017 $ 1,061 2018 $ 487 2019 $ 451 2020 $ 168 Goodwill The changes in the carrying amount of goodwill were (in thousands): Fiscal years ended September 30, 2015 2014 Beginning balance, October 1 $ 103,398 $ 103,569 Foreign currency translation adjustment (1,301 ) (171 ) Ending balance, September 30 $ 102,097 $ 103,398 |
Segment Information and Major C
Segment Information and Major Customers | 12 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION AND MAJOR CUSTOMERS | SEGMENT INFORMATION AND MAJOR CUSTOMERS We operate under a single operating and reporting segment. Our revenue consists of hardware product revenue and service revenue. In an effort to provide further transparency of our financial information, we have expanded our hardware product categories for revenue reporting. Beginning with the first quarter of fiscal 2016, we will transition away from reporting revenue in terms of growth and mature hardware products and will report four product categories: Cellular routers and gateways, Radio Frequency (RF), Embedded and Network. We believe this is a more meaningful presentation and reflects how we are monitoring our revenue. Our cellular product category includes cellular routers and all gateways, and the RF product category includes XBee ® modules as well as other RF solutions. The embedded product category includes Digi Connect ® and Rabbit ® embedded systems on module and single board computers. The network product category, which has the highest concentration of mature products, includes console and serial servers and USB connected devices. Our service offerings include wireless product design and development services, CRM consulting services, application development services, our PaaS recurring revenue generated from Device Cloud platform, post-contract customer support and fees associated with enterprise support services. The following table presents our revenue by our new product categories (in thousands): Fiscal years ended September 30, 2015 2014 2013 Cellular routers and gateways $ 58,666 $ 39,215 $ 33,227 RF 34,373 29,094 29,157 Embedded 51,063 49,681 57,597 Network 51,395 54,856 53,097 Total product revenue 195,497 172,846 173,078 Service 17,361 19,855 22,303 Total revenue $ 212,858 $ 192,701 $ 195,381 The following table presents revenue for our growth and mature categories (in thousands): Fiscal years ended September 30, 2014 2013 2012 Growth hardware products and all services $ 133,572 $ 109,763 $ 110,350 Mature hardware products 79,286 82,938 85,031 Total revenue $ 212,858 $ 192,701 $ 195,381 The information in the following table provides revenue by the geographic location of the customer for the fiscal years ended September 30, 2015 , 2014 and 2013 (in thousands): Fiscal years ended September 30, 2015 2014 2013 North America, primarily United States $ 136,603 $ 116,421 $ 116,541 Europe, Middle East & Africa 47,523 47,729 48,815 Asia 22,907 22,762 24,507 Latin America 5,825 5,789 5,518 Total revenue $ 212,858 $ 192,701 $ 195,381 4. SEGMENT INFORMATION AND MAJOR CUSTOMERS (CONTINUED) Net property, equipment and improvements by geographic location are as follows (in thousands): Fiscal years ended September 30, 2015 2014 2013 United States $ 14,103 $ 12,813 $ 13,321 International, primarily Europe 254 418 589 Total net property, equipment and improvements $ 14,357 $ 13,231 $ 13,910 Our U.S. export sales comprised 37.7% , 41.2% and 41.7% of revenue for the fiscal years ended September 30, 2015 , 2014 and 2013 . No single customer exceeded 10% of revenue for any of the periods presented. At September 30, 2015, we had two customers, whose accounts receivable balance comprised 10.2% and 11.0% of total accounts receivable. No single customer exceeded 10% of total accounts receivable at September 30, 2014. |
Selected Balance Sheet Data
Selected Balance Sheet Data | 12 Months Ended |
Sep. 30, 2015 | |
Selected Balance Sheet Data [Abstract] | |
SELECTED BALANCE SHEET DATA | SELECTED BALANCE SHEET DATA (in thousands) As of September 30, 2015 2014 Accounts receivable, net: Accounts receivable $ 29,688 $ 28,943 Less allowance for doubtful accounts 483 367 Total accounts receivable, net $ 29,205 $ 28,576 Inventories: Raw materials $ 26,037 $ 26,402 Work in process 598 315 Finished goods 5,242 4,530 Total inventories $ 31,877 $ 31,247 Property, equipment and improvements, net: Land $ 1,800 $ 1,800 Buildings 10,522 10,522 Improvements 3,328 3,420 Equipment 15,691 13,646 Purchased software 3,458 3,559 Furniture and fixtures 2,742 2,477 Total property, equipment and improvements, gross 37,541 35,424 Less accumulated depreciation and amortization 23,184 22,193 Total property, equipment and improvements, net $ 14,357 $ 13,231 |
Marketable Securities
Marketable Securities | 12 Months Ended |
Sep. 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 such as: (a) whether we have the intent to sell the security, or (b) whether it is more likely than not that we will be required to sell the security before its anticipated recovery, or (c) permanent impairment due to bankruptcy or insolvency. In order to estimate the fair value for each security in our investment portfolio, we obtain quoted market prices and trading activity for each security where available. We obtain relevant information from our investment advisor and, if warranted, also 6. MARKETABLE SECURITIES (CONTINUED) may review the financial solvency of certain security issuers. As of September 30, 2015 , 44 of our 81 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. We received proceeds from the sale of our available-for-sale marketable securities of $38.0 million , $47.4 million and $63.1 million for fiscal 2015, 2014 and 2013, respectively. At September 30, 2015 our marketable securities were (in thousands): Amortized Cost (1) Unrealized Gains Unrealized Losses Fair Value (1) Current marketable securities: Corporate bonds $ 31,753 $ — $ (39 ) $ 31,714 Commercial paper 7,986 — (1 ) 7,985 Certificates of deposit 6,253 8 — 6,261 Government municipal bonds 1,232 — — 1,232 Current marketable securities 47,224 8 (40 ) 47,192 Non-current marketable securities: Corporate bonds 4,138 — (13 ) 4,125 Certificates of deposit 7,511 3 (7 ) 7,507 Government municipal bonds 1,996 — (3 ) 1,993 Non-current marketable securities 13,645 3 (23 ) 13,625 Total marketable securities $ 60,869 $ 11 $ (63 ) $ 60,817 (1) Included in amortized cost and fair value is purchased and accrued interest of $252 . 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 $629 . 6. MARKETABLE SECURITIES (CONTINUED) The following tables show the fair values and gross unrealized losses of our available-for-sale securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category (in thousands): September 30, 2015 Less than 12 Months More than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 33,664 $ (52 ) $ — $ — Commercial paper 5,987 (1 ) — — Certificates of deposit 4,244 (6 ) 499 (1 ) Government municipal bonds 3,159 (3 ) — — Total $ 47,054 $ (62 ) $ 499 $ (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 | 12 Months Ended |
Sep. 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 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. 7. 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 September 30, 2015 using: Total carrying value at September 30, 2015 Quoted price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Cash equivalents: Money market $ 14,436 $ 14,436 $ — $ — Available-for-sale marketable securities: Corporate bonds 35,839 — 35,839 — Commercial paper 7,985 — 7,985 — Certificates of deposit 13,768 — 13,768 — Government municipal bonds 3,225 — 3,225 — Total cash equivalents and marketable securities measured at fair value $ 75,253 $ 14,436 $ 60,817 $ — Fair Value Measurements at September 30, 2014 using: Total carrying value at September 30, 2014 Quoted price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (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 $ — 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 twelve months ended September 30, 2015 . We had no financial assets valued with Level 3 inputs as of September 30, 2015 nor did we purchase or sell any Level 3 financial assets during the twelve months ended September 30, 2015 . The use of different assumptions, applying different judgment to matters that are inherently subjective and changes in future market conditions could result in different estimates of fair value of our securities, currently and in the future. If market conditions deteriorate, we may incur impairment charges for securities in our investment portfolio. |
Product Warranty Obligation
Product Warranty Obligation | 12 Months Ended |
Sep. 30, 2015 | |
Product Warranties Disclosures [Abstract] | |
PRODUCT WARRANTY OBLIGATION | PRODUCT WARRANTY OBLIGATION The following table summarizes the activity associated with the product warranty accrual (in thousands) and is listed on our Consolidated Balance Sheets under Current Liabilities: Balance at Warranties Settlements Balance at Fiscal year October 1 issued made September 30 2015 $ 862 $ 967 $ (815 ) $ 1,014 2014 $ 1,063 $ 627 $ (828 ) $ 862 2013 $ 1,021 $ 669 $ (627 ) $ 1,063 We are not responsible for, and do not warrant that, custom software versions, created by original equipment manufacturer (OEM) customers based upon our software source code, will function in a particular way, will conform to any specifications or are fit for any particular purpose. Further, we do not indemnify these customers from any third-party liability as it relates to or arises from any customization or modifications made by the OEM customer. |
Restructuring
Restructuring | 12 Months Ended |
Sep. 30, 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 2012 Restructuring Employee Employee Employee Termination Costs Employee Termination Costs Other Total Balance at September 30, 2012 $ — $ — $ — $ 13 108 $ 121 Restructuring charge — — 350 — — 350 Payments — — — — (84 ) (84 ) Reversals — — — (13 ) (24 ) (37 ) 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 (509 ) — — — — (509 ) Reversals (9 ) — — — — (9 ) Balance at September 30, 2015 $ — $ — $ — $ — $ — $ — 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 expected revenue levels resulting in an elimination of approximately 21 positions. The payments associated with these charges were completed during the fourth quarter 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. 9. RESTRUCTURING (CONTINUED) 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 payments associated with these charges and all the actions associated with the restructuring were completed during the third quarter of fiscal 2014. 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. 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 IoT 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 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 by the second quarter of fiscal 2013. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income before income taxes are as follows (in thousands): Fiscal years ended September 30, 2015 2014 2013 United States $ 2,462 $ (5,097 ) $ (395 ) International 6,183 5,894 8,633 Income before income taxes $ 8,645 $ 797 $ 8,238 The components of the income tax provision (benefit) are as follows (in thousands): Fiscal years ended September 30, 2015 2014 2013 Current: Federal $ 240 $ (309 ) $ 1,418 State 308 (58 ) 263 Foreign 2,278 2,196 3,148 Deferred: U.S. (566 ) (2,623 ) (2,270 ) Foreign (203 ) (160 ) (126 ) Income tax provision (benefit) $ 2,057 $ (954 ) $ 2,433 10. INCOME TAXES (CONTINUED) The net deferred tax asset consists of the following (in thousands): As of September 30, 2015 2014 Current deferred tax asset $ 3,379 $ 3,221 Non-current deferred tax asset 5,666 7,383 Current deferred tax liability (36 ) — Non-current deferred tax liability (135 ) (272 ) Net deferred tax asset $ 8,874 $ 10,332 Uncollectible accounts and other reserves $ 1,075 $ 1,023 Depreciation and amortization 190 276 Inventories 999 1,297 Compensation costs 7,148 8,606 Tax carryforwards 1,185 1,347 Valuation allowance (862 ) (572 ) Identifiable intangible assets (861 ) (1,645 ) Net deferred tax asset $ 8,874 $ 10,332 As of September 30, 2015 , we have estimated carryforwards for tax purposes as follows: We have $0.7 million of carryforwards mostly related to state research and development credits of tax credits and $0.5 million related to non-U.S. net operating losses. The majority of the state research and development tax credits and non-U.S. net operating losses have an unlimited carryforward period. The majority of our non-U.S. tax credit carryforwards will expire in 2027. Our valuation allowance for certain U.S. and foreign locations increased to $0.9 million at September 30, 2015 from $0.6 million at September 30, 2014 , due to foreign losses and limitations on current year state research and development credits. The amount of the deferred tax assets realized could vary if there are differences in the timing or amount of future reversals of existing deferred tax liabilities or changes in the amounts of future taxable income. If our future taxable income projections are not realized, an additional valuation allowance may be required, and would be reflected as income tax expense at the time that any such change in future taxable income is determined. The reconciliation of the statutory federal income tax amount to our income tax provision (benefit) is as follows (in thousands): Fiscal years ended September 30, 2015 2014 2013 Statutory income tax amount $ 2,939 $ 271 $ 2,801 Increase (decrease) resulting from: State taxes, net of federal benefits (222 ) (281 ) (32 ) Utilization of tax credits (250 ) (76 ) (601 ) Manufacturing deduction (285 ) (92 ) (65 ) Discrete tax benefits (845 ) (1,470 ) (863 ) Foreign operations 181 316 166 Valuation reserve 297 11 65 Adjustment of tax contingency reserves 71 168 800 Meals and entertainment 93 99 80 Employee stock purchase plan 76 85 77 Other, net 2 15 5 Income tax provision (benefit) $ 2,057 $ (954 ) $ 2,433 10. INCOME TAXES (CONTINUED) During fiscal 2015, we recorded net tax benefits of $0.9 million resulting from the reinstatement of the research and development tax credit for calendar year 2014, reversal of tax reserves due to the expiration of statute of limitations from U.S. and foreign tax jurisdictions and reversal of tax reserves due to the resolution of tax audits. These benefits are included within the discrete tax benefits in the above table. During fiscal 2014, we recorded net tax benefits of $1.4 million , related to the re-measurement and reversal of certain income tax reserves as a result of a federal income tax audit of fiscal 2012, the reassessment of state research and development tax credits and the release of income tax reserves due to the expiration of statute of limitations from U.S. and foreign tax jurisdictions. These benefits are included within the discrete tax benefits in the above table. During fiscal 2013, we recorded net tax benefits of $0.8 million related to the January 2, 2013 enactment of the American Taxpayers Relief Act of 2012 extending the research and development tax credit for the last three quarters of fiscal 2012 and the release of income tax reserves due to the expiration of the statute of limitations from various U.S. and foreign tax jurisdictions. These benefits are included within the discrete tax benefits in the above table. A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands): Fiscal years ended September 30, 2015 2014 2013 Unrecognized tax benefits at beginning of fiscal year $ 2,301 $ 3,332 $ 2,720 Increases related to: Prior year income tax positions 110 181 162 Current year income tax positions 144 148 733 Decreases related to: Prior year income tax positions (255 ) (1,105 ) — Settlements (74 ) (95 ) — Expiration of statute of limitations (608 ) (160 ) (283 ) Unrecognized tax benefits at end of fiscal year $ 1,618 $ 2,301 $ 3,332 The total amount of unrecognized tax benefits at September 30, 2015 that, if recognized, would affect our effective tax rate is $1.6 million . We expect that it is reasonably possible that the total amounts of unrecognized tax benefits will decrease approximately $0.2 million over the next 12 months due to the expiration of various statutes of limitations. Of the $1.6 million of unrecognized tax benefits, $1.2 million is included in non-current income taxes payable and $0.4 million is included with non-current deferred tax assets on the consolidated balance sheet at September, 20, 2015. We recognize interest and penalties related to income tax matters in income tax expense. During the fiscal years ended 2015 and 2014 , there were $0.1 million and $0.2 million , respectively, of benefits for interest and penalties related to income tax matters in income tax expense. We had accrued interest and penalties related to unrecognized tax benefits of $0.3 million at September 30, 2015 and $0.4 million at September 30, 2014 . Our long-term income taxes payable on our consolidated balance sheets includes these accrued interest and penalties in addition to the unrecognized tax benefits in the table above. We operate in multiple tax jurisdictions both in the U.S. and outside of the U.S and face audits from various tax authorities regarding transfer pricing, tax credits, and other matters. 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. With a few exceptions, we are no longer subject to income tax examination for tax years prior to fiscal 2013 . 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 2011, and for Minnesota for tax years prior to fiscal 2013. We do not anticipate significant changes to our unrecognized tax benefits as a result of these examinations. At September 30, 2015 , we had approximately $28.2 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 10. INCOME TAXES (CONTINUED) operations and provide for future international expansion opportunities, and only repatriate earnings to the extent that U.S. taxes have already been recorded. Although we have no current need or intention to repatriate historical earnings in the form of cash in the United States, if we change our assertion from indefinitely reinvesting undistributed foreign earnings, we would have to accrue applicable taxes. The amount of any taxes and the application of any tax credits would be determined based on the income tax laws at the time of such repatriation. Under current tax laws, we estimate the unrecognized deferred tax liability to be up to $0.8 million . |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION During fiscal 2015, stock-based awards were granted under the terms of the 2014 Omnibus Incentive Plan (the 2014 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. We also have outstanding shares related to stock-based awards for plans in which we can no longer grant shares. These plans include the 2013 Omnibus Incentive Plan (the 2013 Plan), which expired during the second quarter of fiscal 2014, the 2000 Omnibus Stock Plan as amended and restated as of December 4, 2009 (the Omnibus Plan), which expired during the second quarter of fiscal 2013 and the Stock Option Plan as amended and restated as of November 27, 2006 (the Stock Option Plan) and Non-Officer Stock Option Plan as amended and restated as of November 27, 2006 (the Non-Officer Plan), both of which expired during the first quarter of fiscal 2007 (the Plans). 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 granted under this plan generally 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 were granted to Directors typically vest in one year. RSU's that were 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 as the 2014 Plan was ratified on January 27, 2014 at the Annual Meeting of Stockholders. 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. As of September 30, 2015 , there were approximately 1,369,684 shares available for future grants under the 2014 Plan. The 2013 Plan authorized the issuance of up to 1,750,000 common shares in connection with awards of stock options, stock appreciation rights, restricted stock, restricted stock units, performance-based full value awards or stock awards. Eligible participants included our employees, non-employee directors, consultants and advisors. Options granted under this plan generally vested over a four year service period and will expire if unexercised after eight years from the date of grant. RSU's that were granted to Directors typically vested in one year. Awards may no longer be granted under the Incentive Plan as the plan was terminated effective January 27, 2014 at the Annual Meeting of Stockholders. Options under the 2013 Plan were granted as either ISOs or NSOs. The exercise price was determined by our Compensation Committee but could not be less than the fair market value of our common stock based on the closing price on the date of grant. The Omnibus Plan authorized the issuance of up to 5,750,000 common shares in connection with awards of stock options, stock appreciation rights, restricted stock, performance units or stock awards. Eligible participants included our employees, non-employee directors, consultants and advisors. An authorization to issue an additional 2,500,000 common shares was ratified on January 25, 2010 at the Annual Meeting of Stockholders. Awards may no longer be granted under the Omnibus Plan as the plan was terminated as to future awards on January 28, 2013 at the Annual Meeting of Stockholders. Options under the Omnibus Plan were granted as either ISOs or non-statutory stock options NSOs. The exercise price was determined by our Compensation Committee but could not be less than the fair market value of our common stock based on the closing price on the date of grant. Awards outstanding under the Stock Option Plan and the Non-Officer Plan included NSOs. In addition, the Stock Option Plan also included ISOs to employees and others who provided services to us, including consultants, advisers and directors. Options granted under these plans generally vested over a four year service period and will expire if unexercised after ten years from the date of grant. The exercise price for ISOs and non-employee director options granted under the Stock Option Plan was set at the fair market value of our common stock based on the closing price on the date of grant. The exercise price for NSOs granted under the Stock Option Plan or the Non-Officer Plan was set by the Compensation Committee of the Board of Directors and was set to the exercise price based on the closing price on the date of grant. 11. STOCK-BASED COMPENSATION (CONTINUED) We recorded cash received from the exercise of stock options of $6.6 million , $3.7 million and $2.2 million during fiscal years 2015 , 2014 and 2013 , respectively. During fiscal 2015 , there were no excess tax benefits from stock-based compensation. The excess tax benefits from stock-based compensation were minimal during fiscal 2014 and $0.1 million during fiscal year 2013 . Upon exercise, we issue new shares of stock. Our award plans have provisions allowing employees to elect to pay their withholding obligation through share reduction (see Note 12). We sponsor an Employee Stock Purchase Plan as amended and restated as of October 29, 2013, December 4, 2009 and November 27, 2006 (the Purchase Plan), covering all domestic employees with at least 90 days of continuous service and who are customarily employed at least 20 hours per week. The Purchase Plan allows eligible participants the right to purchase common stock on a quarterly basis at the lower of 85% of the market price at the beginning or end of each three -month offering period. The Purchase Plan was ratified on January 27, 2014 at the Annual Meeting of Stockholders to increase the number of shares reserved for future purchases by 800,000 shares bringing the total number of shares to 2,800,000 shares of our Common Stock that may be purchased under the plan. Employee contributions to the Purchase Plan were $0.9 million in fiscal 2015 , and $1.0 million in both fiscal 2014 and 2013 . Pursuant to the Purchase Plan, 123,847 , 129,449 , and 128,853 common shares were issued to employees during the fiscal years ended 2015 , 2014 and 2013 , respectively. Shares are issued under the Purchase Plan from treasury stock. As of September 30, 2015 , 617,531 common shares were available for future issuances under the Purchase Plan. Stock-based compensation cost capitalized as part of inventory was immaterial as of September 30, 2015 , 2014 and 2013 . Stock-based compensation expense is included in the consolidated results of operations as follows (in thousands): Fiscal years ended September 30, 2015 2014 2013 Cost of sales $ 356 $ 345 $ 183 Sales and marketing 1,197 1,179 1,261 Research and development 785 735 772 General and administrative 1,963 2,071 1,556 Stock-based compensation before income taxes 4,301 4,330 3,772 Income tax benefit (1,493 ) (1,491 ) (1,192 ) Stock-based compensation after income taxes $ 2,808 $ 2,839 $ 2,580 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 (739 ) 8.87 Forfeited / Canceled (1,300 ) 11.55 Balance at September 30, 2015 4,800 $10.21 4.8 $ 9,163 Exercisable at September 30, 2015 3,540 $10.66 4.1 $ 5,575 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $11.79 as of September 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 each of the twelve months ended September 30, 2015 , 2014 and 2013 was $0.9 million , $0.5 million and $0.5 million , respectively. 11. STOCK-BASED COMPENSATION (CONTINUED) The table below shows the weighted average fair value, which was determined based upon the fair value of each option on the grant date utilizing the Black-Scholes option-pricing model and the related assumptions: Fiscal years ended September 30, 2015 2014 2013 Weighted average per option grant date fair value $ 2.98 $ 4.35 $ 3.77 Assumptions used for option grants: Risk free interest rate 1.57% - 1.85% 1.76% - 2.02% 0.88% - 1.78% Expected term 6.00 years 6.00 years 6.25 years Expected volatility 32% - 36% 38% - 40% 40% Weighted average volatility 35% 40% 40% Expected dividend yield 0 0 0 The fair value of each option award granted during the periods presented was estimated using the Black-Scholes option valuation model that uses the assumptions noted in the table above. Expected volatilities are based on the historical volatility of our stock. We use historical data to estimate option exercise and employee termination information within the valuation model; separate groups of grantees that have similar historical exercise behaviors are considered separately for valuation purposes. The expected term of options granted is derived from the vesting period and historical information and represents the period of time that options granted are expected to be outstanding. The risk-free rate used is the zero-coupon U.S. Treasury bond rate in effect at the time of the grant whose maturity equals the expected term of the option. We use historical data to estimate pre-vesting forfeiture rates. The pre-vesting forfeiture rate used in fiscal 2015 was 6.0% . As of September 30, 2015 the total unrecognized compensation cost related to non-vested stock-based compensation arrangements, net of expected forfeitures, was $3.6 million and the related weighted average period over which it is expected to be recognized is approximately 2.7 years. At September 30, 2015 , the weighted average exercise price and remaining life of the stock options are as follows (in thousands, except remaining life and exercise price): Options Outstanding Options Exercisable Range of Exercise Prices Options Outstanding Weighted Average Remaining Contractual Life (In Years) Weighted Average Exercise Price Number of Shares Vested Weighted Average Exercise Price $7.40 - $8.03 777 5.32 $ 7.74 439 $ 8.01 $8.04 - $9.35 1,006 6.10 $ 8.79 521 $ 8.98 $9.36 - $9.95 751 4.94 $ 9.69 709 $ 9.69 $9.96 - $10.81 1,119 6.05 $ 10.66 724 $ 10.68 $10.82 - $13.41 883 2.00 $ 12.41 883 $ 12.41 $13.42 - $14.75 27 3.22 $ 14.35 27 $ 14.35 $14.76 - $15.23 237 2.05 $ 15.23 237 $ 15.23 $7.40 - $15.23 4,800 4.81 $ 10.21 3,540 $ 10.66 The total grant date fair value of shares vested was $2.9 million in fiscal 2015 , $0.8 million in fiscal 2014 and $3.1 million in fiscal 2013 . 11. STOCK-BASED COMPENSATION (CONTINUED) A summary of our non-vested restricted stock units as of September 30, 2015 and changes during the twelve 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 503 $ 8.27 Vested (91 ) $ 9.66 Canceled (40 ) $ 7.77 Nonvested at September 30, 2015 543 $ 8.41 As of September 30, 2015 , the total unrecognized compensation cost related to non-vested restricted stock units was $3.2 million and the related weighted average period over which it is expected to be recognized is approximately 1.4 years. |
Common Stock Repurchase
Common Stock Repurchase | 12 Months Ended |
Sep. 30, 2015 | |
Common Stock Repurchase [Abstract] | |
COMMON STOCK REPURCHASE | COMMON STOCK REPURCHASE Common Stock Repurchase Program On October 29, 2013 , our Board of Directors authorized a program to repurchase up to $20.0 million of our common stock, primarily to support our employee stock purchase program and to return capital to shareholders. Shares repurchased under this program were permitted either through the open market or privately negotiated transactions from time to time and in amounts that management deemed appropriate. During the first quarter of fiscal 2015, we repurchased 287,787 shares for $2.2 million under this plan which expired on October 31, 2014. On October 28, 2014, our Board of Directors authorized a program to repurchase up to $15 million of our common stock, primarily to return capital to shareholders and to support our employee stock purchase program. This authorization began on November 1, 2014 and expired on October 31, 2015. There were no shares repurchased under this program. Restricted Stock Unit Withholdings We issue restricted stock units as part of our equity incentive plans. When the restricted stock units vest and become taxable to our employees, they may elect to have us deduct shares on their behalf to pay the appropriate taxing authorities. In our consolidated financial statements, we treat these shares withheld for tax purposes on behalf of our employees as common stock repurchases. These withheld shares are not considered common stock repurchases on our authorized common stock repurchase program. During fiscal 2015, we used $0.1 million to repurchase shares to satisfy these withholding obligations. There were no purchases of shares to satisfy withholding obligations during fiscal 2014 and 2013. |
Share Rights Plan
Share Rights Plan | 12 Months Ended |
Sep. 30, 2015 | |
Warrants and Rights Note Disclosure [Abstract] | |
SHARE RIGHTS PLAN | SHARE RIGHTS PLAN Under our share rights plan, each right entitles its holder to buy one one-hundredth of a share of a Series A Junior Participating Preferred Stock at an exercise price of $60 , subject to adjustment. The rights are not exercisable until a specified distribution date as defined in the Share Rights Agreement. The Rights will expire on June 30, 2018 , unless extended or earlier redeemed or exchanged by us as defined in the Share Rights Agreement. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS We currently have a savings and profit sharing plan pursuant to Section 401(k) of the Internal Revenue Code (the Code), whereby eligible employees may contribute up to 25% of their pre-tax earnings, not to exceed amounts allowed under the Code. We provide a match of 100% on the first 3% of each employee’s bi-weekly contribution and a 50% match on the next 2% of each employee’s bi-weekly contribution. In addition, we may make contributions to the plan at the discretion of the Board of Directors. We provided matching contributions of $1.7 million for fiscal 2015, $1.6 million for fiscal 2014 and $1.4 million for fiscal 2013 . |
Commitments
Commitments | 12 Months Ended |
Sep. 30, 2015 | |
Leases, Operating [Abstract] | |
COMMITMENTS | COMMITMENTS We have entered into various operating lease agreements for office facilities and equipment, the last of which expires in fiscal 2020 . The office facility leases generally require us to pay a pro-rata share of the lessor’s operating expenses. Certain operating leases contain escalation clauses and are being amortized on a straight-line basis over the term of the lease. The following schedule reflects future minimum rental commitments under noncancelable operating leases (in thousands): Fiscal year Amount 2016 $ 1,993 2017 1,127 2018 648 2019 444 2020 40 Thereafter — Total minimum payments required $ 4,252 The following schedule shows the composition of total rental expense for all operating leases for the years ended September 30 (in thousands): Fiscal years ended September 30, 2015 2014 2013 Rentals $ 2,591 $ 2,967 $ 3,053 Less: sublease rentals (56 ) (24 ) (31 ) Total rental expense $ 2,535 $ 2,943 $ 3,022 |
Contingencies
Contingencies | 12 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES Patent Infringement Lawsuits On May 29, 2012, U.S. Ethernet Innovations, LLC filed a patent infringement lawsuit against us in federal court in the Eastern District of Texas. The lawsuit included allegations against us and one other company pertaining to the infringement of four patents related to Ethernet technology. On April 22, 2013, we announced the settlement of this patent infringement lawsuit for $1.5 million , which was recorded in general and administrative expense on our Consolidated Statements of Operations during the second quarter of fiscal 2013. The settlement was paid during the third quarter of fiscal 2013. The settlement fully 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 matters discussed above, in the normal course of business, we are subject to various claims and litigation, which may include, but are not limited to, patent infringement and intellectual property claims. While we are unable to predict the outcome of any potential claims or litigation due to the inherent unpredictability of these matters, we believe that it is possible that we could, in the future, incur judgments or enter into settlements of claims that could have a material adverse effect on our operations in any particular period. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Sep. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | QUARTERLY FINANCIAL DATA (UNAUDITED) (in thousands, except per common share data) Quarter ended Dec. 31 March 31 June 30 Sept. 30 Fiscal 2015 Revenue $ 48,723 $ 53,151 $ 54,538 $ 56,446 Gross profit 21,922 24,078 25,349 26,682 Net (loss) income (1)(2)(3) (339 ) 1,446 2,496 2,985 Net (loss) income per common share - basic (0.01 ) 0.06 0.10 0.12 Net (loss) income per common share - diluted (0.01 ) 0.06 0.10 0.12 Fiscal 2014 Revenue $ 47,322 $ 45,882 $ 47,885 $ 51,612 Gross profit 22,908 21,780 22,149 23,647 Net income (loss) (1) 688 738 (101 ) 426 Net income per common share - basic 0.03 0.03 — 0.02 Net income per common share - diluted 0.03 0.03 — 0.02 (1) During fiscal 2015 and 2014, we recorded net tax benefits of $0.9 million and $1.4 million , respectively. We recorded a benefit of $0.5 million in the first quarter of fiscal 2015 resulting from the reinstatement of the research and development tax credit for calendar year 2014, reversal of income tax reserves due to the expiration of the statute of limitations from various U.S. and foreign tax jurisdictions and reversal of tax reserves due to the resolution of tax audits. In the third quarter of fiscal 2015, we recorded a tax benefit of $0.4 million primarily due to the reversal of reserves for state research and development tax credits and transfer pricing, partially offset by an adjustment of the state rate on net deferred tax assets. We recorded net tax benefits of $0.2 million in the first quarter of fiscal 2014 resulting from the release of income tax reserves due to the expiration of the statute of limitations from various U.S. and foreign tax jurisdictions. During the second quarter of fiscal 2014, we recorded a tax benefit of $1.1 million resulting from re-measurement and reversal of certain income tax reserves as a result of the conclusion of a federal income tax audit for fiscal 2012. In the third quarter of fiscal 2014, we recorded a tax benefit of $0.1 million primarily for a valuation allowance reversal associated with the reassessment of state research and development tax credits. (2) In the second quarter of fiscal 2015, we recorded a business restructuring accrual of $0.5 million ( $0.3 million after tax). (3) During fiscal 2015, we recorded a gain of $1.4 million from the settlement of a property and casualty insurance claim related to the replacement of our capital equipment destroyed in the fire at our subcontract manufacturer's location. We recorded $1.0 million ( $0.6 million after tax) during the second quarter of fiscal 2015 and $0.4 million ( $0.3 million after tax) during the third quarter of fiscal 2015. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Acquisition of Bluenica Corporation On October 5, 2015 we purchased all of the outstanding stock of Bluenica Corporation, a company focused on temperature monitoring of perishable goods in the food industry by using wireless sensors which are installed in grocery and convenience stores, restaurants, and in products during shipment and storage to ensure that quality, freshness and public health requirements are met. We believe that this is a complementary acquisition for us and will provide a source of recurring subscription revenue from cloud services in addition to product revenue from sensors and gateways. The terms of the acquisition include an upfront cash payment together with earn-out payments. Cash of $2.9 million was paid at time of closing. The earn-out payments are scheduled to be paid in installments over a four -year period based on revenue achievement of the acquired business. The cumulative amount of these earn-out payments will not exceed $11.6 million . An additional payment, not to exceed $3.5 million , may also be due depending on revenue performance. We have determined that the earn-out will be considered as part of the purchase price consideration as there are no continuing employment requirements associated with the earn-out. A preliminary purchase price allocation and estimated acquisition costs are not available due to the timing of the acquisition. Disposition of Etherios, Inc. On October 23, 2015, we sold all the outstanding stock of our wholly owned subsidiary, Etherios, Inc. to West Monroe Partners, LLC. We sold our CRM business as part of a strategy to improve our focus on providing highly reliable machine connectivity solutions for business-critical and mission-critical application environments. Beginning in fiscal 2016, we will report Etherios as discontinued operations within our single operating segment. We sold the Etherios business for $9.0 million , subject to certain purchase price adjustments. Of the total purchase price, $4.0 million , less employee related liabilities of approximately $1.1 million , was paid at closing. Below is a summary of the proceeds (in thousands): Cash due at closing $ 4,000 Less: Employee related liabilities (1,134 ) Net cash proceeds at closing 2,866 Deferred payment due October 23, 2016 3,000 Deferred payment due October 23, 2017 2,000 Total proceeds $ 7,866 Restructuring On November 19, 2015, we approved a restructuring plan impacting our corporate staff. The plan most principally will close our Dortmund office and relocate certain employees to our Munich office. We expect to incur charges in the range of $0.4 million to $0.6 million in connection with these restructuring activities. The charges relate to severance payments to impacted employees. We expect to complete all payments associated with the charges by the end of fiscal 2016. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II- Valuation and Qualifying Accounts | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS DIGI INTERNATIONAL INC. (in thousands) Description Balance at beginning of period Increase (Decrease) to costs and expenses Deductions Balance at end of period Valuation allowance - deferred tax assets September 30, 2015 $ 572 $ 316 $ 26 $ 862 September 30, 2014 $ 807 $ 174 $ 409 $ 572 September 30, 2013 $ 887 $ 170 $ 250 $ 807 Valuation account - doubtful accounts September 30, 2015 $ 367 $ 202 $ 86 (1) $ 483 September 30, 2014 $ 313 $ 209 $ 155 (1) $ 367 September 30, 2013 $ 295 $ 309 $ 291 (1) $ 313 Reserve for future returns and pricing adjustments September 30, 2015 $ 1,662 $ 7,002 $ 6,847 $ 1,817 September 30, 2014 $ 1,770 $ 6,526 $ 6,634 $ 1,662 September 30, 2013 $ 1,362 $ 6,973 $ 6,565 $ 1,770 (1) Uncollectible accounts charged against allowance, net of recoveries |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Cash Equivalents | Cash Equivalents Cash equivalents consist of money market accounts and other highly liquid investments purchased with an original maturity of three months or less. The carrying amounts approximate fair value due to the short maturities of these investments. |
Marketable Securities | Marketable Securities Marketable securities consist of certificates of deposit, commercial paper, corporate bonds and government municipal bonds. All marketable securities are accounted for as available-for-sale and are carried at fair value on our consolidated balance sheets with unrealized gains and losses recorded in accumulated other comprehensive loss within stockholders’ equity. In order to estimate the fair value for each security in our investment portfolio, we obtain quoted market prices and trading activity for each security where available. We obtain relevant information from our investment advisor and, if warranted, also may review the financial solvency of certain security issuers. We regularly monitor and evaluate the value of our marketable securities. When assessing marketable securities for other-than-temporary declines in value, we consider several factors. These factors include: how significant the decline in value is as a percentage of the original cost, how long the market value of the investment has been less than its original cost, the underlying factors contributing to a decline in the prices of securities in a single asset class, the performance of the issuer’s stock price in relation to the stock price of its competitors within the industry, expected market volatility, analyst recommendations, the views of external investment managers, any news or financial information that has been released specific to the investee and the outlook for the overall industry in which the issuer operates. If events and circumstances indicate that a decline in the value of a security has occurred and is other-than-temporary, we would record a charge to other income (expense). |
Accounts Receivable | Accounts Receivable Accounts receivable are stated at the amount we expect to collect, which is net of an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. The following factors are considered when determining the collectability of specific customer accounts: customer creditworthiness, past transaction history with the customer, and changes in customer payment terms or practices. In addition, overall historical collection experience, current economic industry trends, and a review of the current status of trade accounts receivable are considered when determining the required allowance for doubtful accounts. Based on our assessment, we provide for estimated uncollectible amounts through a charge to earnings and a credit to our allowance for doubtful accounts. Balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and a credit to accounts receivable. |
Inventories | Inventories Inventories are stated at the lower of cost or fair market value, with cost determined using the first-in, first-out method. Appropriate consideration is given to deterioration, obsolescence and other factors in evaluating fair market value. |
Property, Equipment and Improvements, Net | Property, Equipment and Improvements, Net Property, equipment and improvements are carried at cost, net of accumulated depreciation. Depreciation is provided by charges to operations using the straight-line method over the estimated asset useful lives. Furniture and fixtures and other equipment are depreciated over a period of three to five years. Building improvements and buildings are depreciated over ten and thirty-nine years, respectively. Expenditures for maintenance and repairs are charged to operations as incurred, while major renewals and betterments are capitalized. The assets and related accumulated depreciation accounts are adjusted for asset retirements and disposals with the resulting gain or loss included in operations. |
Identifiable Intangible Assets | Identifiable Intangible Assets Purchased proven technology, license agreements, covenants not to compete and other identifiable intangible assets are recorded at fair value when acquired in a business acquisition, or at cost when not purchased in a business acquisition. Purchased in-process research and development costs (IPR&D) related to business combinations are capitalized and amortized once placed in service. All other identifiable intangible assets are amortized on either a straight-line basis over their estimated useful lives of three to thirteen years or based on the pattern in which the asset is consumed. Useful lives for identifiable intangible assets are estimated at the time of acquisition based on the periods of time from which we expect to derive benefits from the identifiable intangible assets. Amortization of purchased and core technology is included in cost of product in the Consolidated Statements of Operations. Amortization of all other acquired identifiable intangible assets is charged to operating expenses as a component of general and administrative expense. Identifiable intangible assets are reviewed for impairment annually or whenever events or circumstances indicate that undiscounted expected future cash flows are not sufficient to recover the carrying value amount. We measure impairment loss by utilizing an undiscounted cash flow valuation technique using fair values indicated by the income approach. Impairment losses, if any, would be recorded in the period the impairment is identified. |
Goodwill | Goodwill Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is tested for impairment on an annual basis as of June 30, or more frequently if events or circumstances occur which could indicate impairment. The calculation of goodwill impairment requires us to make assumptions about the fair value of our one reporting unit, which historically has been approximated by using our market capitalization plus a control premium. Control premium assumptions require judgment and actual results may differ from assumed or estimated amounts. |
Warranties | Warranties In general, we warrant our hardware products to be free from defects in material and workmanship under normal use and service. The warranty periods generally range from one to five years. We typically have the option to either repair or replace hardware products we deem defective with regard to material or workmanship. Estimated warranty costs are accrued in the period that the related revenue is recognized based upon an estimated average per unit repair or replacement cost applied to the estimated number of units under warranty. These estimates are based upon historical warranty incidents and are evaluated on an ongoing basis to ensure the adequacy of the warranty accrual. |
Revenue Recognition | Revenue Recognition We recognize revenue in accordance with authoritative guidance issued by FASB related to revenue recognition. Hardware product revenue as a percentage of total revenue was 91.8% , 89.7% and 88.6% in fiscal 2015 , 2014 and 2013 , respectively. We recognize hardware product revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, collectability is reasonably assured and there are no post-delivery obligations, other than warranty. Under these criteria, product revenue generally is recognized upon shipment of product to customers. Sales to authorized domestic and foreign distributors and Direct / OEMs are made with certain rights of return and price adjustment provisions. Estimated reserves for future returns and pricing adjustments are established by us based on an analysis of historical patterns of returns and price adjustments as well as an analysis of authorized returns compared to received returns and distribution sales for the current period. Estimated reserves for future returns and price adjustments are charged against revenue in the same period as the corresponding revenue is recorded. Service revenue as a percentage of total revenue represented 8.2% , 10.3% and 11.4% in fiscal 2015 , 2014 and 2013 , respectively. Our service revenue is derived primarily from professional and engineering services performed by our Etherios customer relationship management (CRM) services and our wireless design services. We also have some service revenue that is derived from our Digi Device Cloud, which is a platform-as-a-service (PaaS) offering in which customers pay for services consumed in terms of devices being managed and monitored, or as a monthly service fee for access to information. In addition, we have small amounts of revenue from our enterprise support services. We recognize service revenue from our Etherios CRM services, wireless design services, and Device Cloud based upon performance, including final product delivery and customer acceptance. In addition, we recognize small amounts of revenue from and enterprise support services which is recognized over the life of the contract, and training as the services are performed. |
Research and Development | Research and Development Research and development costs are expensed when incurred. Research and development costs include compensation, allocation of corporate costs, depreciation, utilities, professional services and prototypes. Software development costs are expensed as incurred until the point that technological feasibility and proven marketability of the product are established. To date, the time period between the establishment of technological feasibility and completion of software development has been short, and no significant development costs have been incurred during that period. Accordingly, we have not capitalized any software development costs to date. |
Income Taxes | Income Taxes Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Income tax expense is equal to the tax payable for the period and the change during the period in deferred tax assets and liabilities and also changes in income tax reserves. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense represents the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. This cost must be recognized over the period during which an employee is required to provide the service (usually the vesting period). |
Foreign Currency Translation | Foreign Currency Translation Financial position and results of operations of our international subsidiaries are measured using local currencies as the functional currency, except for our Singapore location which uses the U.S. Dollar as its local currency. Assets and liabilities of these operations are translated at the exchange rates in effect at the end of each reporting period. For our larger international subsidiaries, statements of operations accounts are translated at the daily rate. For all other international subsidiaries, our statements of operations accounts are translated at the weighted average rates of exchange prevailing during each reporting period. Translation adjustments arising from the use of differing currency exchange rates from period to period are included in accumulated other comprehensive loss in stockholders’ equity. Gains and losses on foreign currency exchange transactions, as well as translation gains or losses on transactions denominated in currencies other than an entity’s functional currency, are reflected in the statement of operations. During fiscal 2015 , 2014 and 2013 , there were net transaction gains of $0.6 million , 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) $0.5 million and $0.4 million , respectively, that were recorded in other income (expense). We manage our net asset or net liability position for U.S. dollar accounts in our foreign locations to reduce our foreign currency risk. We have not implemented a formal hedging strategy. |
Net Income Per Common Share | Net Income Per Common Share Basic net income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares of our stock result from dilutive common stock options and restricted stock units. We use the treasury stock method to calculate the weighted-average shares used in the diluted earnings per share computation. Under the treasury stock method, the proceeds from exercise of an option, the amount of compensation cost, if any, for future service that we have not yet recognized, and the amount of estimated tax benefits that would be recorded in paid-in capital, if any, when the option is exercised are assumed to be used to repurchase shares in the current period. |
Use of Estimates and Risks and Uncertainties | Use of Estimates and Risks and Uncertainties The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates that could significantly affect our results of operations or financial condition involve the assignment of fair values upon acquisition of goodwill and other intangible assets and testing for impairment; the determination of our allowance for doubtful accounts and reserve for future returns and pricing adjustments; the estimation of our inventory obsolescence, warranty reserve, income tax reserves and other contingencies. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Our comprehensive income (loss) is comprised of net income, foreign currency translation adjustments and unrealized gains and losses on available-for-sale marketable securities, which are charged or credited to the accumulated other comprehensive loss account in stockholders’ equity. |
Recent Accounting Developments | Recent Accounting Developments 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 was effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. We adopted this guidance during the fiscal quarter ended December 31, 2014, resulting in a reclassification of $0.4 million of unrecognized tax benefits to noncurrent deferred tax assets. 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 2013-05 was effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. We adopted this guidance during the fiscal quarter ended December 31, 2014. There was no impact on our condensed consolidated financial statements as we have not sold any foreign entities for which we hold a controlling financial interest. Not Yet Adopted In September 2015, FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments." To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments in this update eliminate the requirement to retrospectively account for those adjustments. The amendments in this update are effective for fiscal years beginning after December 15, 2015, including interim periods within those years, which for us will be the first fiscal quarter ending December 31, 2016. Earlier application is permitted for financial statements that have not been issued. We are currently evaluating the impact of the adoption of ASU 2015-16. In July 2015, FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory." This provision would require inventory that was previously recorded using first-in, first-out (FIFO) to lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance is effective for fiscal years beginning after December 15, 2016 and interim periods within those years, which for us will be the first fiscal quarter ending December 31, 2017. The amendments in this guidance should be applied prospectively with earlier application permitted as of the beginning of an interim or annual period. We are currently evaluating the impact of the adoption of ASU 2015-11 and whether it would have a material impact on our consolidated financial statements. In April 2015, 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 August 2014, FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern.” This guidance requires management to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. These amendments are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter, which for us, will be the fourth fiscal quarter ended September 30, 2017. Early adoption is permitted. While we are evaluating the impact of the adoption of ASU 2014-15, we do not expect it to have an impact on our consolidated financial statements. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 August 2015, the FASB issued ASU 2015-14 "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date" which approved a one-year deferral of the effective date of ASU 2014-09. As a result of this deferral, ASU 2014-09 is effective for our fiscal 2019, including interim periods within that reporting period. The FASB also agreed to allow us to choose to adopt the standard effective for our fiscal 2018. We are assessing the adoption date and potential impact of adopting this ASU on our consolidated financial statements and related disclosures. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table is a reconciliation of the numerators and denominators in the net income per common share calculations (in thousands, except per common share data): Fiscal years ended September 30, 2015 2014 2013 Numerator: Net income $ 6,588 $ 1,751 $ 5,805 Denominator: Denominator for basic net income per common share — weighted average shares outstanding 24,645 25,345 25,956 Effect of dilutive securities: Stock options and restricted stock units 582 385 281 Denominator for diluted net income per common share — adjusted weighted average shares 25,227 25,730 26,237 Net income per common share, basic $ 0.27 $ 0.07 $ 0.22 Net income per common share, diluted $ 0.26 $ 0.07 $ 0.22 |
Goodwill and other Identifiab29
Goodwill and other Identifiable Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Amortizable Identifiable Intangible Assets | Amortizable identifiable intangible assets, net as of September 30, 2015 and 2014 are comprised of the following (in thousands): September 30, 2015 September 30, 2014 Gross carrying amount Accum. amort. Net Gross carrying amount Accum. amort. Net Purchased and core technology $ 45,449 $ (45,424 ) $ 25 $ 45,952 $ (45,162 ) $ 790 License agreements 18 (4 ) 14 2,440 (2,440 ) — Patents and trademarks 11,817 (10,568 ) 1,249 11,667 (9,799 ) 1,868 Customer relationships 18,490 (16,057 ) 2,433 18,894 (15,445 ) 3,449 Non-compete agreements 1,100 (642 ) 458 1,100 (422 ) 678 Order backlog — — — 360 (360 ) — Total $ 76,874 $ (72,695 ) $ 4,179 $ 80,413 $ (73,628 ) $ 6,785 |
Schedule of Amortization Expense | Amortization expense for fiscal years 2015 , 2014 and 2013 is as follows (in thousands): Fiscal year Total 2015 $ 2,910 2014 $ 3,589 2013 $ 4,416 |
Schedule of Estimated Future Amortization Expense Related to Identifiable Intangible Assets | Estimated amortization expense for the next five years is as follows (in thousands): Fiscal year Total 2016 $ 1,944 2017 $ 1,061 2018 $ 487 2019 $ 451 2020 $ 168 |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill were (in thousands): Fiscal years ended September 30, 2015 2014 Beginning balance, October 1 $ 103,398 $ 103,569 Foreign currency translation adjustment (1,301 ) (171 ) Ending balance, September 30 $ 102,097 $ 103,398 |
Segment Information and Major30
Segment Information and Major Customers (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Product Categories | The following table presents our revenue by our new product categories (in thousands): Fiscal years ended September 30, 2015 2014 2013 Cellular routers and gateways $ 58,666 $ 39,215 $ 33,227 RF 34,373 29,094 29,157 Embedded 51,063 49,681 57,597 Network 51,395 54,856 53,097 Total product revenue 195,497 172,846 173,078 Service 17,361 19,855 22,303 Total revenue $ 212,858 $ 192,701 $ 195,381 |
Schedule of Revenue by Growth and Mature Categories | The following table presents revenue for our growth and mature categories (in thousands): Fiscal years ended September 30, 2014 2013 2012 Growth hardware products and all services $ 133,572 $ 109,763 $ 110,350 Mature hardware products 79,286 82,938 85,031 Total revenue $ 212,858 $ 192,701 $ 195,381 |
Schedule of Revenue by Geographic Location | The information in the following table provides revenue by the geographic location of the customer for the fiscal years ended September 30, 2015 , 2014 and 2013 (in thousands): Fiscal years ended September 30, 2015 2014 2013 North America, primarily United States $ 136,603 $ 116,421 $ 116,541 Europe, Middle East & Africa 47,523 47,729 48,815 Asia 22,907 22,762 24,507 Latin America 5,825 5,789 5,518 Total revenue $ 212,858 $ 192,701 $ 195,381 |
Schedule of Net Property, Equipment and Improvements by Geographical Location | Net property, equipment and improvements by geographic location are as follows (in thousands): Fiscal years ended September 30, 2015 2014 2013 United States $ 14,103 $ 12,813 $ 13,321 International, primarily Europe 254 418 589 Total net property, equipment and improvements $ 14,357 $ 13,231 $ 13,910 |
Selected Balance Sheet Data (Ta
Selected Balance Sheet Data (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Selected Balance Sheet Data [Abstract] | |
Schedule of Selected Balance Sheet Data | (in thousands) As of September 30, 2015 2014 Accounts receivable, net: Accounts receivable $ 29,688 $ 28,943 Less allowance for doubtful accounts 483 367 Total accounts receivable, net $ 29,205 $ 28,576 Inventories: Raw materials $ 26,037 $ 26,402 Work in process 598 315 Finished goods 5,242 4,530 Total inventories $ 31,877 $ 31,247 Property, equipment and improvements, net: Land $ 1,800 $ 1,800 Buildings 10,522 10,522 Improvements 3,328 3,420 Equipment 15,691 13,646 Purchased software 3,458 3,559 Furniture and fixtures 2,742 2,477 Total property, equipment and improvements, gross 37,541 35,424 Less accumulated depreciation and amortization 23,184 22,193 Total property, equipment and improvements, net $ 14,357 $ 13,231 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Marketable Securities [Abstract] | |
Schedule of Marketable Securities | At September 30, 2015 our marketable securities were (in thousands): Amortized Cost (1) Unrealized Gains Unrealized Losses Fair Value (1) Current marketable securities: Corporate bonds $ 31,753 $ — $ (39 ) $ 31,714 Commercial paper 7,986 — (1 ) 7,985 Certificates of deposit 6,253 8 — 6,261 Government municipal bonds 1,232 — — 1,232 Current marketable securities 47,224 8 (40 ) 47,192 Non-current marketable securities: Corporate bonds 4,138 — (13 ) 4,125 Certificates of deposit 7,511 3 (7 ) 7,507 Government municipal bonds 1,996 — (3 ) 1,993 Non-current marketable securities 13,645 3 (23 ) 13,625 Total marketable securities $ 60,869 $ 11 $ (63 ) $ 60,817 (1) Included in amortized cost and fair value is purchased and accrued interest of $252 . 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 $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 securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category (in thousands): September 30, 2015 Less than 12 Months More than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 33,664 $ (52 ) $ — $ — Commercial paper 5,987 (1 ) — — Certificates of deposit 4,244 (6 ) 499 (1 ) Government municipal bonds 3,159 (3 ) — — Total $ 47,054 $ (62 ) $ 499 $ (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) | 12 Months Ended |
Sep. 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): Fair Value Measurements at September 30, 2015 using: Total carrying value at September 30, 2015 Quoted price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Cash equivalents: Money market $ 14,436 $ 14,436 $ — $ — Available-for-sale marketable securities: Corporate bonds 35,839 — 35,839 — Commercial paper 7,985 — 7,985 — Certificates of deposit 13,768 — 13,768 — Government municipal bonds 3,225 — 3,225 — Total cash equivalents and marketable securities measured at fair value $ 75,253 $ 14,436 $ 60,817 $ — Fair Value Measurements at September 30, 2014 using: Total carrying value at September 30, 2014 Quoted price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (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 $ — |
Product Warranty Obligation (Ta
Product Warranty Obligation (Tables) | 12 Months Ended |
Sep. 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 listed on our Consolidated Balance Sheets under Current Liabilities: Balance at Warranties Settlements Balance at Fiscal year October 1 issued made September 30 2015 $ 862 $ 967 $ (815 ) $ 1,014 2014 $ 1,063 $ 627 $ (828 ) $ 862 2013 $ 1,021 $ 669 $ (627 ) $ 1,063 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Sep. 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 2012 Restructuring Employee Employee Employee Termination Costs Employee Termination Costs Other Total Balance at September 30, 2012 $ — $ — $ — $ 13 108 $ 121 Restructuring charge — — 350 — — 350 Payments — — — — (84 ) (84 ) Reversals — — — (13 ) (24 ) (37 ) 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 (509 ) — — — — (509 ) Reversals (9 ) — — — — (9 ) Balance at September 30, 2015 $ — $ — $ — $ — $ — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Taxes | The components of income before income taxes are as follows (in thousands): Fiscal years ended September 30, 2015 2014 2013 United States $ 2,462 $ (5,097 ) $ (395 ) International 6,183 5,894 8,633 Income before income taxes $ 8,645 $ 797 $ 8,238 |
Schedule of Components of Income Tax Provision (Benefit) | The components of the income tax provision (benefit) are as follows (in thousands): Fiscal years ended September 30, 2015 2014 2013 Current: Federal $ 240 $ (309 ) $ 1,418 State 308 (58 ) 263 Foreign 2,278 2,196 3,148 Deferred: U.S. (566 ) (2,623 ) (2,270 ) Foreign (203 ) (160 ) (126 ) Income tax provision (benefit) $ 2,057 $ (954 ) $ 2,433 |
Schedule of Net Deferred Tax Asset | The net deferred tax asset consists of the following (in thousands): As of September 30, 2015 2014 Current deferred tax asset $ 3,379 $ 3,221 Non-current deferred tax asset 5,666 7,383 Current deferred tax liability (36 ) — Non-current deferred tax liability (135 ) (272 ) Net deferred tax asset $ 8,874 $ 10,332 Uncollectible accounts and other reserves $ 1,075 $ 1,023 Depreciation and amortization 190 276 Inventories 999 1,297 Compensation costs 7,148 8,606 Tax carryforwards 1,185 1,347 Valuation allowance (862 ) (572 ) Identifiable intangible assets (861 ) (1,645 ) Net deferred tax asset $ 8,874 $ 10,332 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of the statutory federal income tax amount to our income tax provision (benefit) is as follows (in thousands): Fiscal years ended September 30, 2015 2014 2013 Statutory income tax amount $ 2,939 $ 271 $ 2,801 Increase (decrease) resulting from: State taxes, net of federal benefits (222 ) (281 ) (32 ) Utilization of tax credits (250 ) (76 ) (601 ) Manufacturing deduction (285 ) (92 ) (65 ) Discrete tax benefits (845 ) (1,470 ) (863 ) Foreign operations 181 316 166 Valuation reserve 297 11 65 Adjustment of tax contingency reserves 71 168 800 Meals and entertainment 93 99 80 Employee stock purchase plan 76 85 77 Other, net 2 15 5 Income tax provision (benefit) $ 2,057 $ (954 ) $ 2,433 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands): Fiscal years ended September 30, 2015 2014 2013 Unrecognized tax benefits at beginning of fiscal year $ 2,301 $ 3,332 $ 2,720 Increases related to: Prior year income tax positions 110 181 162 Current year income tax positions 144 148 733 Decreases related to: Prior year income tax positions (255 ) (1,105 ) — Settlements (74 ) (95 ) — Expiration of statute of limitations (608 ) (160 ) (283 ) Unrecognized tax benefits at end of fiscal year $ 1,618 $ 2,301 $ 3,332 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 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): Fiscal years ended September 30, 2015 2014 2013 Cost of sales $ 356 $ 345 $ 183 Sales and marketing 1,197 1,179 1,261 Research and development 785 735 772 General and administrative 1,963 2,071 1,556 Stock-based compensation before income taxes 4,301 4,330 3,772 Income tax benefit (1,493 ) (1,491 ) (1,192 ) Stock-based compensation after income taxes $ 2,808 $ 2,839 $ 2,580 |
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 (739 ) 8.87 Forfeited / Canceled (1,300 ) 11.55 Balance at September 30, 2015 4,800 $10.21 4.8 $ 9,163 Exercisable at September 30, 2015 3,540 $10.66 4.1 $ 5,575 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $11.79 as of September 30, 2015 , which would have been received by the option holders had all option holders exercised their options as of that date. |
Schedule of Valuation Assumptions | The table below shows the weighted average fair value, which was determined based upon the fair value of each option on the grant date utilizing the Black-Scholes option-pricing model and the related assumptions: Fiscal years ended September 30, 2015 2014 2013 Weighted average per option grant date fair value $ 2.98 $ 4.35 $ 3.77 Assumptions used for option grants: Risk free interest rate 1.57% - 1.85% 1.76% - 2.02% 0.88% - 1.78% Expected term 6.00 years 6.00 years 6.25 years Expected volatility 32% - 36% 38% - 40% 40% Weighted average volatility 35% 40% 40% Expected dividend yield 0 0 0 |
Schedule of Weighted Average Exercise Price Range and Remaining Contractual Life | At September 30, 2015 , the weighted average exercise price and remaining life of the stock options are as follows (in thousands, except remaining life and exercise price): Options Outstanding Options Exercisable Range of Exercise Prices Options Outstanding Weighted Average Remaining Contractual Life (In Years) Weighted Average Exercise Price Number of Shares Vested Weighted Average Exercise Price $7.40 - $8.03 777 5.32 $ 7.74 439 $ 8.01 $8.04 - $9.35 1,006 6.10 $ 8.79 521 $ 8.98 $9.36 - $9.95 751 4.94 $ 9.69 709 $ 9.69 $9.96 - $10.81 1,119 6.05 $ 10.66 724 $ 10.68 $10.82 - $13.41 883 2.00 $ 12.41 883 $ 12.41 $13.42 - $14.75 27 3.22 $ 14.35 27 $ 14.35 $14.76 - $15.23 237 2.05 $ 15.23 237 $ 15.23 $7.40 - $15.23 4,800 4.81 $ 10.21 3,540 $ 10.66 |
Schedule of Nonvested Restricted Stock Units | A summary of our non-vested restricted stock units as of September 30, 2015 and changes during the twelve 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 503 $ 8.27 Vested (91 ) $ 9.66 Canceled (40 ) $ 7.77 Nonvested at September 30, 2015 543 $ 8.41 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Leases, Operating [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The following schedule reflects future minimum rental commitments under noncancelable operating leases (in thousands): Fiscal year Amount 2016 $ 1,993 2017 1,127 2018 648 2019 444 2020 40 Thereafter — Total minimum payments required $ 4,252 |
Schedule of Rent Expense | The following schedule shows the composition of total rental expense for all operating leases for the years ended September 30 (in thousands): Fiscal years ended September 30, 2015 2014 2013 Rentals $ 2,591 $ 2,967 $ 3,053 Less: sublease rentals (56 ) (24 ) (31 ) Total rental expense $ 2,535 $ 2,943 $ 3,022 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data (Unaudited) | (in thousands, except per common share data) Quarter ended Dec. 31 March 31 June 30 Sept. 30 Fiscal 2015 Revenue $ 48,723 $ 53,151 $ 54,538 $ 56,446 Gross profit 21,922 24,078 25,349 26,682 Net (loss) income (1)(2)(3) (339 ) 1,446 2,496 2,985 Net (loss) income per common share - basic (0.01 ) 0.06 0.10 0.12 Net (loss) income per common share - diluted (0.01 ) 0.06 0.10 0.12 Fiscal 2014 Revenue $ 47,322 $ 45,882 $ 47,885 $ 51,612 Gross profit 22,908 21,780 22,149 23,647 Net income (loss) (1) 688 738 (101 ) 426 Net income per common share - basic 0.03 0.03 — 0.02 Net income per common share - diluted 0.03 0.03 — 0.02 (1) During fiscal 2015 and 2014, we recorded net tax benefits of $0.9 million and $1.4 million , respectively. We recorded a benefit of $0.5 million in the first quarter of fiscal 2015 resulting from the reinstatement of the research and development tax credit for calendar year 2014, reversal of income tax reserves due to the expiration of the statute of limitations from various U.S. and foreign tax jurisdictions and reversal of tax reserves due to the resolution of tax audits. In the third quarter of fiscal 2015, we recorded a tax benefit of $0.4 million primarily due to the reversal of reserves for state research and development tax credits and transfer pricing, partially offset by an adjustment of the state rate on net deferred tax assets. We recorded net tax benefits of $0.2 million in the first quarter of fiscal 2014 resulting from the release of income tax reserves due to the expiration of the statute of limitations from various U.S. and foreign tax jurisdictions. During the second quarter of fiscal 2014, we recorded a tax benefit of $1.1 million resulting from re-measurement and reversal of certain income tax reserves as a result of the conclusion of a federal income tax audit for fiscal 2012. In the third quarter of fiscal 2014, we recorded a tax benefit of $0.1 million primarily for a valuation allowance reversal associated with the reassessment of state research and development tax credits. (2) In the second quarter of fiscal 2015, we recorded a business restructuring accrual of $0.5 million ( $0.3 million after tax). (3) During fiscal 2015, we recorded a gain of $1.4 million from the settlement of a property and casualty insurance claim related to the replacement of our capital equipment destroyed in the fire at our subcontract manufacturer's location. We recorded $1.0 million ( $0.6 million after tax) during the second quarter of fiscal 2015 and $0.4 million ( $0.3 million after tax) during the third quarter of fiscal 2015. |
Subsequent Event (Tables)
Subsequent Event (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Summary of proceeds from discontinued operations | Below is a summary of the proceeds (in thousands): Cash due at closing $ 4,000 Less: Employee related liabilities (1,134 ) Net cash proceeds at closing 2,866 Deferred payment due October 23, 2016 3,000 Deferred payment due October 23, 2017 2,000 Total proceeds $ 7,866 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Property, Equipment and Improvements, Net) (Details) | 12 Months Ended |
Sep. 30, 2015 | |
Furniture and Fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, equipment and improvements depreciation life | 3 years |
Furniture and Fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, equipment and improvements depreciation life | 5 years |
Building Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, equipment and improvements depreciation life | 10 years |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Property, equipment and improvements depreciation life | 39 years |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Identifiable Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible impairment charge | $ 361 | $ 0 | $ 0 | $ 361 |
Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated useful life | 3 years | |||
Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated useful life | 13 years |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Goodwill) (Details) $ in Thousands | Jun. 30, 2014USD ($)industry | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | Sep. 30, 2012USD ($) |
Goodwill [Line Items] | ||||||
Target companies equity benchmark | 50.00% | |||||
Number of industries encompasses similar products | industry | 3 | |||||
Control premium percent | 35.00% | |||||
Market Capitalization | $ 235,800 | $ 238,600 | ||||
Carrying value | $ 273,010 | $ 274,938 | $ 270,643 | $ 265,298 | $ 274,243 | $ 270,834 |
Percent fair value in excess of carrying value of goodwill | 17.00% | 19.00% | ||||
Minimum | ||||||
Goodwill [Line Items] | ||||||
Control premium percent | 30.00% | |||||
Maximum | ||||||
Goodwill [Line Items] | ||||||
Control premium percent | 40.00% |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Warranty) (Details) | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Warranty period, minimum | 1 year |
Warranty period, maximum | 5 years |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Revenue Recognition) (Details) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Hardware products | |||
Concentration Risk [Line Items] | |||
Percentage of revenue | 91.80% | 89.70% | 88.60% |
Service | |||
Concentration Risk [Line Items] | |||
Percentage of revenue | 8.20% | 10.30% | 11.40% |
Summary of Significant Accoun46
Summary of Significant Accounting Policies (Foreign Currency Translation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Accounting Policies [Abstract] | |||
Foreign currency net transaction gains | $ 0.6 | $ 0.5 | $ 0.4 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Net Income Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |||||||||
Accounting Policies [Abstract] | |||||||||||||||||||
Net income | $ 2,985 | [1],[2],[3] | $ 2,496 | [1],[2],[3] | $ 1,446 | [1],[2],[3] | $ (339) | [1],[2],[3] | $ 426 | [1] | $ (101) | [1] | $ 738 | [1] | $ 688 | [1] | $ 6,588 | $ 1,751 | $ 5,805 |
Denominator for basic net income per common share — weighted average shares outstanding | 24,645,000 | 25,345,000 | 25,956,000 | ||||||||||||||||
Effect of dilutive securities [Abstract] | |||||||||||||||||||
Stock options and restricted stock units | 582,000 | 385,000 | 281,000 | ||||||||||||||||
Denominator for diluted net income per common share — adjusted weighted average shares | 25,227,000 | 25,730,000 | 26,237,000 | ||||||||||||||||
Net income per common share, basic (USD per share) | $ 0.12 | $ 0.10 | $ 0.06 | $ (0.01) | $ 0.02 | $ 0 | $ 0.03 | $ 0.03 | $ 0.27 | $ 0.07 | $ 0.22 | ||||||||
Net income per common share, diluted (USD per share) | $ 0.12 | $ 0.10 | $ 0.06 | $ (0.01) | $ 0.02 | $ 0 | $ 0.03 | $ 0.03 | $ 0.26 | $ 0.07 | $ 0.22 | ||||||||
Antidilutive securities excluded from computation of earnings per share | 3,016,911 | 3,284,993 | 3,939,541 | ||||||||||||||||
[1] | During fiscal 2015 and 2014, we recorded net tax benefits of $0.9 million and $1.4 million, respectively. We recorded a benefit of $0.5 million in the first quarter of fiscal 2015 resulting from the reinstatement of the research and development tax credit for calendar year 2014, reversal of income tax reserves due to the expiration of the statute of limitations from various U.S. and foreign tax jurisdictions and reversal of tax reserves due to the resolution of tax audits. In the third quarter of fiscal 2015, we recorded a tax benefit of $0.4 million primarily due to the reversal of reserves for state research and development tax credits and transfer pricing, partially offset by an adjustment of the state rate on net deferred tax assets. We recorded net tax benefits of $0.2 million in the first quarter of fiscal 2014 resulting from the release of income tax reserves due to the expiration of the statute of limitations from various U.S. and foreign tax jurisdictions. During the second quarter of fiscal 2014, we recorded a tax benefit of $1.1 million resulting from re-measurement and reversal of certain income tax reserves as a result of the conclusion of a federal income tax audit for fiscal 2012. In the third quarter of fiscal 2014, we recorded a tax benefit of $0.1 million primarily for a valuation allowance reversal associated with the reassessment of state research and development tax credits. | ||||||||||||||||||
[2] | During fiscal 2015, we recorded a gain of $1.4 million from the settlement of a property and casualty insurance claim related to the replacement of our capital equipment destroyed in the fire at our subcontract manufacturer's location. We recorded $1.0 million ($0.6 million after tax) during the second quarter of fiscal 2015 and $0.4 million ($0.3 million after tax) during the third quarter of fiscal 2015. | ||||||||||||||||||
[3] | In the second quarter of fiscal 2015, we recorded a business restructuring accrual of $0.5 million ($0.3 million after tax). |
Summary of Significant Accoun48
Summary of Significant Accounting Policies (Recent Accounting Developments) (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2014USD ($) | |
Restatement Adjustment [Member] | Accounting Standards Update 2013-11 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 0.4 |
Acquisition (Details)
Acquisition (Details) - Etherios, Inc - USD ($) $ / shares in Units, $ in Thousands | Oct. 31, 2012 | Sep. 30, 2013 |
Business Acquisition [Line Items] | ||
Total purchase price | $ 20,400 | |
Cash, including cash in escrow | 13,700 | |
Cash acquired | 800 | |
Common stock | 6,700 | |
Amount in escrow | 2,350 | |
Escrow holdback | 300 | |
Escrow cash | $ 2,050 | |
Purchase accounting adjustment decrease | $ 100 | |
Net Tangible Assets purchase accounting adjustment decrease | 300 | |
Goodwill, Purchase Accounting Adjustments | 200 | |
Goodwill | 17,300 | |
Acquisition related costs | $ 200 | |
Maximum | ||
Business Acquisition [Line Items] | ||
Escrow cash period | 18 months | |
Common Stock | ||
Business Acquisition [Line Items] | ||
Number of shares | 715,571 | |
Common stock issued per common share | $ 9.42 |
Goodwill and other Identifiab50
Goodwill and other Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | $ 76,874 | $ 80,413 | ||
Accumulated amortization | (72,695) | (73,628) | ||
Net | 4,179 | 6,785 | ||
Intangible impairment charge | $ 361 | 0 | 0 | $ 361 |
Purchased and Core Technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 45,449 | 45,952 | ||
Accumulated amortization | (45,424) | (45,162) | ||
Net | 25 | 790 | ||
Intangible impairment charge | 200 | |||
License Agreements | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 18 | 2,440 | ||
Accumulated amortization | (4) | (2,440) | ||
Net | 14 | 0 | ||
Intangible impairment charge | 100 | |||
Patents and Trademarks | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 11,817 | 11,667 | ||
Accumulated amortization | (10,568) | (9,799) | ||
Net | 1,249 | 1,868 | ||
Intangible impairment charge | $ 100 | |||
Customer Relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 18,490 | 18,894 | ||
Accumulated amortization | (16,057) | (15,445) | ||
Net | 2,433 | 3,449 | ||
Non-compete Agreements | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 1,100 | 1,100 | ||
Accumulated amortization | (642) | (422) | ||
Net | 458 | 678 | ||
Order Backlog | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 0 | 360 | ||
Accumulated amortization | 0 | (360) | ||
Net | $ 0 | $ 0 |
Goodwill and other Identifiab51
Goodwill and other Identifiable Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 2,910 | $ 3,589 | $ 4,416 |
2,016 | 1,944 | ||
2,017 | 1,061 | ||
2,018 | 487 | ||
2,019 | 451 | ||
2,020 | $ 168 |
Goodwill and other Identifiab52
Goodwill and other Identifiable Intangible Assets (Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 103,398 | $ 103,569 |
Foreign currency translation adjustment | (1,301) | (171) |
Ending balance | $ 102,097 | $ 103,398 |
Segment Information and Major53
Segment Information and Major Customers (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015USD ($)customer | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($)customer | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2015USD ($)customersegment | Sep. 30, 2014USD ($)customer | Sep. 30, 2013USD ($)customer | |
Segment Reporting Information [Line Items] | |||||||||||
Sales Revenue, Goods, Net | $ 195,497 | $ 172,846 | $ 173,078 | ||||||||
Sales Revenue, Services, Net | $ 17,361 | 19,855 | 22,303 | ||||||||
Number of operating segments | segment | 1 | ||||||||||
Number of reportable segments | segment | 1 | ||||||||||
Total revenue | $ 56,446 | $ 54,538 | $ 53,151 | $ 48,723 | $ 51,612 | $ 47,885 | $ 45,882 | $ 47,322 | $ 212,858 | 192,701 | 195,381 |
Total property, equipment and improvements | $ 14,357 | $ 13,231 | $ 14,357 | $ 13,231 | $ 13,910 | ||||||
Number of customer representing over ten percent of revenue | customer | 0 | 0 | 0 | ||||||||
Number of customer representing over ten percent of consolidated accounts receivable | customer | 2 | 0 | 2 | 0 | |||||||
North America, primarily United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 136,603 | $ 116,421 | $ 116,541 | ||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total property, equipment and improvements | $ 14,103 | $ 12,813 | $ 14,103 | $ 12,813 | $ 13,321 | ||||||
United States | U.S. Export Net Sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of concentration | 37.70% | 41.20% | 41.70% | ||||||||
United States | Accounts Receivable | Customer 1 | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of concentration | 10.20% | ||||||||||
United States | Accounts Receivable | Customer 2 | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of concentration | 11.00% | ||||||||||
Europe, Middle East and Africa | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 47,523 | $ 47,729 | $ 48,815 | ||||||||
Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 22,907 | 22,762 | 24,507 | ||||||||
Latin America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 5,825 | 5,789 | 5,518 | ||||||||
International, primarily Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total property, equipment and improvements | $ 254 | $ 418 | 254 | 418 | 589 | ||||||
Cellular routers and gateways | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales Revenue, Goods, Net | 58,666 | 39,215 | 33,227 | ||||||||
RF | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales Revenue, Goods, Net | 34,373 | 29,094 | 29,157 | ||||||||
Embedded | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales Revenue, Goods, Net | 51,063 | 49,681 | 57,597 | ||||||||
Network | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales Revenue, Goods, Net | 51,395 | 54,856 | 53,097 | ||||||||
Growth hardware product and all services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 133,572 | 109,763 | 110,350 | ||||||||
Mature hardware products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 79,286 | $ 82,938 | $ 85,031 |
Selected Balance Sheet Data (De
Selected Balance Sheet Data (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Accounts receivable, net: | |||
Accounts receivable | $ 29,688 | $ 28,943 | |
Less allowance for doubtful accounts | 483 | 367 | |
Total accounts receivable, net | 29,205 | 28,576 | |
Inventories: | |||
Raw materials | 26,037 | 26,402 | |
Work in process | 598 | 315 | |
Finished goods | 5,242 | 4,530 | |
Total Inventories | 31,877 | 31,247 | |
Property, Plant and Equipment, Net | |||
Total property, equipment and improvements, gross | 37,541 | 35,424 | |
Less accumulated depreciation and amortization | 23,184 | 22,193 | |
Total property, equipment and improvements, net | 14,357 | 13,231 | $ 13,910 |
Land | |||
Property, Plant and Equipment, Net | |||
Total property, equipment and improvements, gross | 1,800 | 1,800 | |
Buildings | |||
Property, Plant and Equipment, Net | |||
Total property, equipment and improvements, gross | 10,522 | 10,522 | |
Improvements | |||
Property, Plant and Equipment, Net | |||
Total property, equipment and improvements, gross | 3,328 | 3,420 | |
Equipment | |||
Property, Plant and Equipment, Net | |||
Total property, equipment and improvements, gross | 15,691 | 13,646 | |
Purchased Software | |||
Property, Plant and Equipment, Net | |||
Total property, equipment and improvements, gross | 3,458 | 3,559 | |
Furniture and Fixtures | |||
Property, Plant and Equipment, Net | |||
Total property, equipment and improvements, gross | $ 2,742 | $ 2,477 |
Marketable Securities (Details)
Marketable Securities (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015USD ($)Security | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |||
Number of securities below amortized cost basis | 44 | ||
Number of securities | 81 | ||
Proceeds from maturities of marketable securities | $ | $ 38,028 | $ 47,420 | $ 63,089 |
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 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, amortized cost basis | $ 60,869 | [1] | $ 44,471 | [2] |
Available-for-sale securities, unrealized gains | 11 | 17 | ||
Available-for-sale securities, unrealized losses | (63) | (49) | ||
Available-for-sale marketable securities, fair value | 60,817 | [1] | 44,439 | [2] |
Purchased and accrued interest | 252 | 629 | ||
Current Assets | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, amortized cost basis | 47,224 | 32,918 | ||
Available-for-sale securities, unrealized gains | 8 | 3 | ||
Available-for-sale securities, unrealized losses | (40) | (23) | ||
Available-for-sale marketable securities, fair value | 47,192 | 32,898 | ||
Current Assets | Corporate bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, amortized cost basis | 31,753 | 24,668 | ||
Available-for-sale securities, unrealized gains | 0 | 1 | ||
Available-for-sale securities, unrealized losses | (39) | (22) | ||
Available-for-sale marketable securities, fair value | 31,714 | 24,647 | ||
Current Assets | Commercial paper | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, amortized cost basis | 7,986 | 3,998 | ||
Available-for-sale securities, unrealized gains | 0 | 0 | ||
Available-for-sale securities, unrealized losses | (1) | (1) | ||
Available-for-sale marketable securities, fair value | 7,985 | 3,997 | ||
Current Assets | Certificates of deposit | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, amortized cost basis | 6,253 | 4,252 | ||
Available-for-sale securities, unrealized gains | 8 | 2 | ||
Available-for-sale securities, unrealized losses | 0 | 0 | ||
Available-for-sale marketable securities, fair value | 6,261 | 4,254 | ||
Current Assets | Government municipal bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, amortized cost basis | 1,232 | |||
Available-for-sale securities, unrealized gains | 0 | |||
Available-for-sale securities, unrealized losses | 0 | |||
Available-for-sale marketable securities, fair value | 1,232 | |||
Non-current Assets | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, amortized cost basis | 13,645 | 11,553 | ||
Available-for-sale securities, unrealized gains | 3 | 14 | ||
Available-for-sale securities, unrealized losses | (23) | (26) | ||
Available-for-sale marketable securities, fair value | 13,625 | 11,541 | ||
Non-current Assets | Corporate bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, amortized cost basis | 4,138 | 2,051 | ||
Available-for-sale securities, unrealized gains | 0 | 0 | ||
Available-for-sale securities, unrealized losses | (13) | (4) | ||
Available-for-sale marketable securities, fair value | 4,125 | 2,047 | ||
Non-current Assets | Certificates of deposit | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, amortized cost basis | 7,511 | 9,502 | ||
Available-for-sale securities, unrealized gains | 3 | 14 | ||
Available-for-sale securities, unrealized losses | (7) | (22) | ||
Available-for-sale marketable securities, fair value | 7,507 | $ 9,494 | ||
Non-current Assets | Government municipal bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, amortized cost basis | 1,996 | |||
Available-for-sale securities, unrealized gains | 0 | |||
Available-for-sale securities, unrealized losses | (3) | |||
Available-for-sale marketable securities, fair value | $ 1,993 | |||
[1] | Included in amortized cost and fair value is purchased and accrued interest of $252. | |||
[2] | Included in amortized cost and fair value is purchased and accrued interest of $629 |
Marketable Securities (Fair Va
Marketable Securities (Fair Value and Gross Unrealized Losses for AFS) (Details) - USD ($) $ in Thousands | Sep. 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 | $ 47,054 | $ 30,453 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (62) | (47) |
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 499 | 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 | 33,664 | 23,475 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (52) | (26) |
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 |
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 | 5,987 | 3,998 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1) | (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 | 4,244 | 2,980 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (6) | (20) |
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 499 | 748 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1) | $ (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 | 3,159 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (3) | |
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 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale marketable securities | $ 60,817 | [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 | 14,436 | 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 | 60,817 | 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 | 14,436 | 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 | 35,839 | 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 | 7,985 | 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 | 13,768 | 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 | 3,225 | |||
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 | 75,253 | 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 | 14,436 | 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 | 35,839 | 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 | 7,985 | 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 | 13,768 | $ 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 | $ 3,225 | |||
[1] | Included in amortized cost and fair value is purchased and accrued interest of $252. | |||
[2] | Included in amortized cost and fair value is purchased and accrued interest of $629 |
Product Warranty Obligation (De
Product Warranty Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Standard Product Warranty Accrual [Roll Forward] | |||
Beginning balance | $ 862 | $ 1,063 | $ 1,021 |
Warranties issued | 967 | 627 | 669 |
Settlements made | (815) | (828) | (627) |
Ending balance | $ 1,014 | $ 862 | $ 1,063 |
Restructuring (Details)
Restructuring (Details) $ in Thousands | Feb. 20, 2015USD ($)employee | Jan. 22, 2015USD ($)employee | Mar. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($)employee | Sep. 30, 2013USD ($)employee | Sep. 30, 2012USD ($)employee |
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, beginning | $ 0 | $ 350 | $ 121 | ||||
Restructuring Charges | $ 500 | 518 | 152 | 350 | |||
Payments for Restructuring | (509) | (431) | (84) | ||||
Restructuring Reserve, Accrual Adjustment | (9) | (71) | (37) | ||||
Restructuring Reserve, ending | 0 | 0 | 350 | $ 121 | |||
Employee Severance | 2015 Restructuring | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, beginning | 0 | 0 | 0 | ||||
Restructuring Charges | 518 | 0 | 0 | ||||
Payments for Restructuring | (509) | 0 | 0 | ||||
Restructuring Reserve, Accrual Adjustment | (9) | 0 | 0 | ||||
Restructuring Reserve, ending | 0 | 0 | 0 | 0 | |||
Employee Severance | 2014 Restructuring | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, beginning | 0 | 0 | 0 | ||||
Restructuring Charges | 0 | 152 | 0 | ||||
Payments for Restructuring | 0 | (152) | 0 | ||||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | 0 | ||||
Restructuring Reserve, ending | 0 | 0 | 0 | 0 | |||
Employee Severance | 2013 Restructuring | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, beginning | 0 | 350 | 0 | ||||
Restructuring Charges | 0 | 0 | 350 | ||||
Payments for Restructuring | 0 | (279) | 0 | ||||
Restructuring Reserve, Accrual Adjustment | 0 | (71) | 0 | ||||
Restructuring Reserve, ending | 0 | 0 | 350 | 0 | |||
Employee Severance | 2012 Restructuring | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, beginning | 0 | 0 | 13 | ||||
Restructuring Charges | 0 | 0 | 0 | ||||
Payments for Restructuring | 0 | 0 | 0 | ||||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | (13) | ||||
Restructuring Reserve, ending | 0 | 0 | 0 | 13 | |||
Facility Closing | 2012 Restructuring | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, beginning | 0 | 0 | 108 | ||||
Restructuring Charges | 0 | 0 | 0 | ||||
Payments for Restructuring | 0 | 0 | (84) | ||||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | (24) | ||||
Restructuring Reserve, ending | $ 0 | $ 0 | $ 0 | $ 108 | |||
UNITED STATES | 2015 Restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Number of Positions Eliminated | employee | 21 | ||||||
UNITED STATES | 2013 Restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Number of Positions Eliminated | employee | 15 | ||||||
UNITED STATES | 2012 Restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Number of Positions Eliminated | employee | 30 | ||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Charges | $ 1,000 | ||||||
UNITED STATES | Employee Severance | 2015 Restructuring | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Charges | $ 300 | ||||||
UNITED STATES | Employee Severance | 2013 Restructuring | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Charges | $ 400 | ||||||
UNITED STATES | Employee Severance | 2012 Restructuring | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Charges | 600 | ||||||
UNITED STATES | Facility Closing | 2012 Restructuring | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Charges | $ 400 | ||||||
INDIA | 2015 Restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Number of Positions Eliminated | employee | 38 | ||||||
INDIA | 2014 Restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Number of Positions Eliminated | employee | 40 | ||||||
INDIA | Employee Severance | 2015 Restructuring | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Charges | $ 200 | ||||||
INDIA | Employee Severance | 2014 Restructuring | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Charges | $ 200 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Taxes [Line Items] | ||||||||
Valuation allowance | $ 862 | $ 572 | ||||||
Net tax benefit mostly related to reversal of tax reserves for federal income tax audit | $ 400 | $ 500 | $ 100 | $ 1,100 | $ 200 | 900 | 1,400 | $ 800 |
Interest and penalties related to income tax matters in income tax expense | (100) | (200) | ||||||
Accrued income tax penalties and interest for unrecognized tax benefits | 300 | $ 400 | ||||||
Accumulated undistributed foreign earnings | 28,200 | |||||||
Maximum | ||||||||
Income Taxes [Line Items] | ||||||||
Estimated unrecognized deferred tax liability | 800 | |||||||
State and Local Jurisdiction | ||||||||
Income Taxes [Line Items] | ||||||||
State research and development tax credits | 700 | |||||||
Foreign Tax Authority | ||||||||
Income Taxes [Line Items] | ||||||||
Non-U.S. operating losses | $ 500 |
Income Taxes (Income Taxes) (De
Income Taxes (Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 2,462 | $ (5,097) | $ (395) |
International | 6,183 | 5,894 | 8,633 |
Income before income taxes | $ 8,645 | $ 797 | $ 8,238 |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Current: | |||
Federal | $ 240 | $ (309) | $ 1,418 |
State | 308 | (58) | 263 |
Foreign | 2,278 | 2,196 | 3,148 |
Deferred: | |||
U.S. | (566) | (2,623) | (2,270) |
Foreign | (203) | (160) | (126) |
Income tax provision (benefit) | $ 2,057 | $ (954) | $ 2,433 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Income Tax Disclosure [Abstract] | ||
Current deferred tax asset | $ 3,379 | $ 3,221 |
Non-current deferred tax asset | 5,666 | 7,383 |
Current deferred tax liability | (36) | 0 |
Non-current deferred tax liability | (135) | (272) |
Net deferred tax asset | 8,874 | 10,332 |
Uncollectible accounts and other reserves | 1,075 | 1,023 |
Depreciation and amortization | 190 | 276 |
Inventories | 999 | 1,297 |
Compensation costs | 7,148 | 8,606 |
Tax carryforwards | 1,185 | 1,347 |
Valuation allowance | (862) | (572) |
Indentifiable intangible assets | $ (861) | $ (1,645) |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory income tax amount | $ 2,939 | $ 271 | $ 2,801 |
State taxes, net of federal benefits | (222) | (281) | (32) |
Utilization of tax credits | (250) | (76) | (601) |
Manufacturing deduction | (285) | (92) | (65) |
Discrete tax benefits | (845) | (1,470) | (863) |
Foreign operations | 181 | 316 | 166 |
Valuation reserve | 297 | 11 | 65 |
Adjustment of tax contingency reserves | 71 | 168 | 800 |
Meals and entertainment | 93 | 99 | 80 |
Employee stock purchase plan | 76 | 85 | 77 |
Other, net | 2 | 15 | 5 |
Income tax provision (benefit) | $ 2,057 | $ (954) | $ 2,433 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Unrecognized tax benefits, beginning balance | $ 2,301 | $ 3,332 | $ 2,720 | |
Increases related to prior year income tax positions | 110 | 181 | 162 | |
Increases related to current year income tax positions | 144 | 148 | 733 | |
Decreases related to prior year income tax positions | (255) | (1,105) | 0 | |
Decreases related to settlements | (74) | (95) | 0 | |
Decreases related to expiration of statute of limitations | (608) | (160) | (283) | |
Unrecognized tax benefits, ending balance | 1,618 | 2,301 | 3,332 | |
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits that would impact effective tax rate | $ 1,600 | |||
Expected change in unrecognized tax benefits, minimum | 200 | |||
Unrecognized tax benefits | 2,301 | $ 3,332 | $ 2,720 | 1,618 |
Noncurrent income taxes payable | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Unrecognized tax benefits, ending balance | 1,200 | |||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | 1,200 | 1,200 | ||
Noncurrent deferred tax assets | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Unrecognized tax benefits, ending balance | 400 | |||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | $ 400 | $ 400 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | Jan. 27, 2014 | Jan. 25, 2010 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Jan. 28, 2013 | Dec. 04, 2009 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Proceeds from stock option plan transactions | $ 6,559 | $ 3,689 | $ 2,193 | ||||
Excess tax benefits from stock-based compensation | 0 | (44) | (67) | ||||
Total intrinsic value of all options exercised | $ 900 | 500 | 500 | ||||
Forfeiture rate | 6.00% | ||||||
Total grant date fair value of shares vested | $ 2,900 | 800 | 3,100 | ||||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total unrecognized compensation cost nonvested awards | $ 3,600 | ||||||
Weighted average period, unrecognized compensation cost, nonvested awards | 2 years 8 months 12 days | ||||||
Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average period, unrecognized compensation cost, nonvested awards | 1 year 5 months 1 day | ||||||
Total unrecognized compensation cost, restricted stock units | $ 3,200 | ||||||
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 | 1,369,684 | ||||||
The 2014 Plan | Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration period | 8 years | ||||||
Vesting period | 4 years | ||||||
The 2013 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized | 1,750,000 | ||||||
The 2013 Plan | Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration period | 8 years | ||||||
Vesting period | 4 years | ||||||
The Omnibus Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized | 5,750,000 | ||||||
Number of additional shares authorized | 2,500,000 | ||||||
The Stock Option Plan and Non-Officer Plan | Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration period | 10 years | ||||||
Vesting period | 4 years | ||||||
The Purchase Plan | The Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized | 2,800,000 | ||||||
Number of additional shares authorized | 800,000 | ||||||
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 | $ 900 | $ 1,000 | $ 1,000 | ||||
Common shares issued to employees | 123,847 | 129,449 | 128,853 | ||||
Shares available for future issuance | 617,531 | ||||||
Director [Member] | The 2014 Plan | Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 1 year | ||||||
Director [Member] | The 2013 Plan | Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 1 year | ||||||
Executives and Employees [Member] | 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 | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation before income taxes | $ 4,301 | $ 4,330 | $ 3,772 |
Income tax benefit | (1,493) | (1,491) | (1,192) |
Stock-based compensation after income taxes | 2,808 | 2,839 | 2,580 |
Cost of Sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation before income taxes | 356 | 345 | 183 |
Sales and Marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation before income taxes | 1,197 | 1,179 | 1,261 |
Research and Development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation before income taxes | 785 | 735 | 772 |
General and Administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation before income taxes | $ 1,963 | $ 2,071 | $ 1,556 |
Stock-Based Compensation (Optio
Stock-Based Compensation (Options and Common Shares Reserved for Grant) (Details) - Stock Options $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Sep. 30, 2015USD ($)$ / sharesshares | ||
Options Outstanding [Roll Forward] | ||
Options Outstanding, Beginning Balance | shares | 6,029 | |
Options Outstanding, Granted | shares | 810 | |
Options Outstanding, Exercised | shares | (739) | |
Options Outstanding, Forfeited / Cancelled | shares | (1,300) | |
Options Outstanding, Ending Balance | shares | 4,800 | |
Options Outstanding, Exercisable | shares | 3,540 | |
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 / Cancelled | 11.55 | |
Weighted Average Exercise Price, Ending Balance | 10.21 | |
Weighted Average Exercise Price, Exercisable | $ 10.66 | |
Weighted Average Remaining Contractual Term [Abstract] | ||
Weighted Average Remaining Contractual Term, Outstanding | 4 years 9 months 18 days | |
Weighted Average Remaining Contractual Term, Exercisable | 4 years 1 month 6 days | |
Aggregate Intrinsic Value [Abstract] | ||
Aggregate Intrinsic Value, Outstanding | $ | $ 9,163 | [1] |
Aggregate Intrinsic Value, Exercisable | $ | $ 5,575 | [1] |
Closing Stock Price | $ 11.79 | |
[1] | The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $11.79 as of September 30, 2015, which would have been received by the option holders had all option holders exercised their options as of that date. |
Stock-Based Compensation (Fair
Stock-Based Compensation (Fair Value Assumptions) (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average per option grant date fair value | $ 2.98 | $ 4.35 | $ 3.77 |
Assumptions Used For Options Grants [Abstract] | |||
Risk free interest rate, minimum | 1.57% | 1.76% | 0.88% |
Risk free interest rate, maximum | 1.85% | 2.02% | 1.78% |
Expected term | 6 years | 6 years | 6 years 3 months |
Expected volatility rate, minimum | 32.00% | 38.00% | 40.00% |
Expected volatility rate, maximum | 36.00% | 40.00% | |
Weighted average volatility | 35.00% | 40.00% | 40.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation (Exerc
Stock-Based Compensation (Exercise Price Range) (Details) - Stock Options shares in Thousands | 12 Months Ended |
Sep. 30, 2015$ / sharesshares | |
$7.40 - $8.03 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range | $ 7.40 |
Exercise Price Range, Upper Range | $ 8.03 |
Options Outstanding | shares | 777 |
Weighted Average Remaining Contractual Term | 5 years 3 months 25 days |
Weighted Average Exercise Price, Options Outstanding | $ 7.74 |
Number of Shares Vested, Options Exercisable | shares | 439 |
Weighted Average Exercise Price, Options Exercisable | $ 8.01 |
$8.04 - $9.35 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range | 8.04 |
Exercise Price Range, Upper Range | $ 9.35 |
Options Outstanding | shares | 1,006 |
Weighted Average Remaining Contractual Term | 6 years 1 month 6 days |
Weighted Average Exercise Price, Options Outstanding | $ 8.79 |
Number of Shares Vested, Options Exercisable | shares | 521 |
Weighted Average Exercise Price, Options Exercisable | $ 8.98 |
$9.36 - $9.95 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range | 9.36 |
Exercise Price Range, Upper Range | $ 9.95 |
Options Outstanding | shares | 751 |
Weighted Average Remaining Contractual Term | 4 years 11 months 8 days |
Weighted Average Exercise Price, Options Outstanding | $ 9.69 |
Number of Shares Vested, Options Exercisable | shares | 709 |
Weighted Average Exercise Price, Options Exercisable | $ 9.69 |
$9.96 - $10.81 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range | 9.96 |
Exercise Price Range, Upper Range | $ 10.81 |
Options Outstanding | shares | 1,119 |
Weighted Average Remaining Contractual Term | 6 years 18 days |
Weighted Average Exercise Price, Options Outstanding | $ 10.66 |
Number of Shares Vested, Options Exercisable | shares | 724 |
Weighted Average Exercise Price, Options Exercisable | $ 10.68 |
$10.82 - $13.41 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range | 10.82 |
Exercise Price Range, Upper Range | $ 13.41 |
Options Outstanding | shares | 883 |
Weighted Average Remaining Contractual Term | 2 years |
Weighted Average Exercise Price, Options Outstanding | $ 12.41 |
Number of Shares Vested, Options Exercisable | shares | 883 |
Weighted Average Exercise Price, Options Exercisable | $ 12.41 |
$13.42 - $14.75 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range | 13.42 |
Exercise Price Range, Upper Range | $ 14.75 |
Options Outstanding | shares | 27 |
Weighted Average Remaining Contractual Term | 3 years 2 months 19 days |
Weighted Average Exercise Price, Options Outstanding | $ 14.35 |
Number of Shares Vested, Options Exercisable | shares | 27 |
Weighted Average Exercise Price, Options Exercisable | $ 14.35 |
$14.76 - $15.23 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range | 14.76 |
Exercise Price Range, Upper Range | $ 15.23 |
Options Outstanding | shares | 237 |
Weighted Average Remaining Contractual Term | 2 years 18 days |
Weighted Average Exercise Price, Options Outstanding | $ 15.23 |
Number of Shares Vested, Options Exercisable | shares | 237 |
Weighted Average Exercise Price, Options Exercisable | $ 15.23 |
$7.40 - $15.23 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range | 7.40 |
Exercise Price Range, Upper Range | $ 15.23 |
Options Outstanding | shares | 4,800 |
Weighted Average Remaining Contractual Term | 4 years 9 months 21 days |
Weighted Average Exercise Price, Options Outstanding | $ 10.21 |
Number of Shares Vested, Options Exercisable | shares | 3,540 |
Weighted Average Exercise Price, Options Exercisable | $ 10.66 |
Stock-Based Compensation (Non-V
Stock-Based Compensation (Non-Vested Options) (Details) - Restricted Stock Units shares in Thousands | 12 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Nonvested Number of Restricted Stock Units [Roll Forward] | |
Number of Restricted Stock Units, Beginning Balance | 171 |
Number of Restricted Stock Units, Granted | 503 |
Number of Restricted Stock Units, Vested | (91) |
Number of Restricted Stock Units, Canceled | (40) |
Number of Restricted Stock Units, Ending Balance | 543 |
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 | $ / shares | $ 9.35 |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Granted | $ / shares | 8.27 |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested | $ / shares | 9.66 |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Canceled | $ / shares | 7.77 |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance | $ / shares | $ 8.41 |
Common Stock Repurchase (Detail
Common Stock Repurchase (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Oct. 28, 2014 | Oct. 29, 2013 | |
Shares repurchased, value | $ 2,339,000 | $ 15,802,000 | $ 14,058,000 | |||
October 2013 authorized repurchase program | ||||||
Stock repurchase program, authorized amount | $ 20,000,000 | |||||
Shares repurchased | 287,787 | |||||
Shares repurchased, value | $ 2,200,000 | |||||
October 2014 authorized repurchase program | ||||||
Stock repurchase program, authorized amount | $ 15,000,000 | |||||
Equity Incentive Plans | ||||||
Adjustment to satisfy withholding obligations | $ 100,000 | $ 0 | $ 0 |
Share Rights Plan (Details)
Share Rights Plan (Details) - Series A Junior Participating Preferred Stock | Sep. 30, 2015$ / sharesshares |
Class of Warrant or Right [Line Items] | |
Amount of shares eligible to buy | 0.01 |
Exercise price | $ / shares | $ 60 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum annual contribution per employee percentage | 25.00% | ||
Matching contributions, amount | $ 1.7 | $ 1.6 | $ 1.4 |
Full Employer Match | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employers percent of matching contributions | 100.00% | ||
Percent of employees' gross pay for employer match | 3.00% | ||
Half Employer Match | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employers percent of matching contributions | 50.00% | ||
Percent of employees' gross pay for employer match | 2.00% |
Commitments (Details)
Commitments (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Leases, Operating [Abstract] | |
2,016 | $ 1,993 |
2,017 | 1,127 |
2,018 | 648 |
2,019 | 444 |
2,020 | 40 |
Thereafter | 0 |
Total minimum payments required | $ 4,252 |
Commitments (Rent Expense) (Det
Commitments (Rent Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Leases, Operating [Abstract] | |||
Rentals | $ 2,591 | $ 2,967 | $ 3,053 |
Less: sublease rentals | (56) | (24) | (31) |
Total rental expense | $ 2,535 | $ 2,943 | $ 3,022 |
Contingencies (Details)
Contingencies (Details) - Patent Infringement $ / shares in Units, $ in Millions | Apr. 22, 2013USD ($)$ / shares |
Loss Contingencies [Line Items] | |
Litigation settlement amount charge, net of tax | $ 1 |
Litigation settlement amount, negative impact on diluted earnings per share | $ / shares | $ 0.04 |
General and Administrative | |
Loss Contingencies [Line Items] | |
Litigation Settlement charge | $ 1.5 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Total revenue | $ 56,446 | $ 54,538 | $ 53,151 | $ 48,723 | $ 51,612 | $ 47,885 | $ 45,882 | $ 47,322 | $ 212,858 | $ 192,701 | $ 195,381 | ||||||||
Gross profit | 26,682 | 25,349 | 24,078 | 21,922 | 23,647 | 22,149 | 21,780 | 22,908 | 98,031 | 90,484 | 100,123 | ||||||||
Net income (loss) | $ 2,985 | [1],[2],[3] | $ 2,496 | [1],[2],[3] | $ 1,446 | [1],[2],[3] | $ (339) | [1],[2],[3] | $ 426 | [1] | $ (101) | [1] | $ 738 | [1] | $ 688 | [1] | $ 6,588 | $ 1,751 | $ 5,805 |
Net income per common share, basic (USD per share) | $ 0.12 | $ 0.10 | $ 0.06 | $ (0.01) | $ 0.02 | $ 0 | $ 0.03 | $ 0.03 | $ 0.27 | $ 0.07 | $ 0.22 | ||||||||
Net income per common share, diluted (USD per share) | $ 0.12 | $ 0.10 | $ 0.06 | $ (0.01) | $ 0.02 | $ 0 | $ 0.03 | $ 0.03 | $ 0.26 | $ 0.07 | $ 0.22 | ||||||||
Net tax benefits | |||||||||||||||||||
Net tax benefits | $ 400 | $ 500 | $ 100 | $ 1,100 | $ 200 | $ 900 | $ 1,400 | $ 800 | |||||||||||
Restructuring Charges [Abstract] | |||||||||||||||||||
Restructuring charge | $ 500 | 518 | $ 152 | $ 350 | |||||||||||||||
Restructuring accrual, net of tax | 300 | ||||||||||||||||||
Gain From Settlement of Property and Casualty Claim [Abstract] | |||||||||||||||||||
Gain from settlement of property and casualty claim | 400 | 1,000 | $ 1,400 | ||||||||||||||||
Gain from settlement of property and casualty claim, net of tax | $ 300 | $ 600 | |||||||||||||||||
[1] | During fiscal 2015 and 2014, we recorded net tax benefits of $0.9 million and $1.4 million, respectively. We recorded a benefit of $0.5 million in the first quarter of fiscal 2015 resulting from the reinstatement of the research and development tax credit for calendar year 2014, reversal of income tax reserves due to the expiration of the statute of limitations from various U.S. and foreign tax jurisdictions and reversal of tax reserves due to the resolution of tax audits. In the third quarter of fiscal 2015, we recorded a tax benefit of $0.4 million primarily due to the reversal of reserves for state research and development tax credits and transfer pricing, partially offset by an adjustment of the state rate on net deferred tax assets. We recorded net tax benefits of $0.2 million in the first quarter of fiscal 2014 resulting from the release of income tax reserves due to the expiration of the statute of limitations from various U.S. and foreign tax jurisdictions. During the second quarter of fiscal 2014, we recorded a tax benefit of $1.1 million resulting from re-measurement and reversal of certain income tax reserves as a result of the conclusion of a federal income tax audit for fiscal 2012. In the third quarter of fiscal 2014, we recorded a tax benefit of $0.1 million primarily for a valuation allowance reversal associated with the reassessment of state research and development tax credits. | ||||||||||||||||||
[2] | During fiscal 2015, we recorded a gain of $1.4 million from the settlement of a property and casualty insurance claim related to the replacement of our capital equipment destroyed in the fire at our subcontract manufacturer's location. We recorded $1.0 million ($0.6 million after tax) during the second quarter of fiscal 2015 and $0.4 million ($0.3 million after tax) during the third quarter of fiscal 2015. | ||||||||||||||||||
[3] | In the second quarter of fiscal 2015, we recorded a business restructuring accrual of $0.5 million ($0.3 million after tax). |
Subsequent Event (Acquistion) (
Subsequent Event (Acquistion) (Details) - Bluenica Corporation - Subsequent Event $ in Millions | Oct. 05, 2015USD ($) |
Subsequent Event [Line Items] | |
Cash consideration | $ 2.9 |
Business combination contingent liability payout period | 4 years |
Performance 1 | |
Subsequent Event [Line Items] | |
Business Combination, Contingent Consideration, Liability | $ 11.6 |
Performance 2 | |
Subsequent Event [Line Items] | |
Business Combination, Contingent Consideration, Liability | $ 3.5 |
Subsequent Event (Disposition)
Subsequent Event (Disposition) (Details) - Etherios, Inc - Subsequent Event - USD ($) $ in Thousands | Oct. 23, 2015 | Oct. 23, 2017 | Oct. 23, 2016 |
Subsequent Event [Line Items] | |||
Amount discontinued operation sold for | $ 9,000 | ||
Cash due at closing | 4,000 | ||
Less: Employee related liabilities | (1,134) | ||
Net cash proceeds at closing | 2,866 | ||
Deferred payment | $ 2,000 | $ 3,000 | |
Total proceeds | $ 7,866 |
Subsequent Event (Restructuring
Subsequent Event (Restructuring)(Details) - USD ($) $ in Thousands | Nov. 19, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Subsequent Event [Line Items] | |||||
Restructuring Charges | $ 500 | $ 518 | $ 152 | $ 350 | |
Minimum | Employee Severance | 2016 Restructuring [Member] | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Restructuring Charges | $ 400 | ||||
Maximum | Employee Severance | 2016 Restructuring [Member] | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Restructuring Charges | $ 600 |
Schedule II - Valuation and Q83
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Valuation Allowance - Deferred Tax Assets | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | $ 572 | $ 807 | $ 887 | |
Increase (Decrease) to costs and expenses | 316 | 174 | 170 | |
Deductions | 26 | 409 | 250 | |
Balance at end of period | 862 | 572 | 807 | |
Valuation Account - Doubtful Accounts | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | 367 | 313 | 295 | |
Increase (Decrease) to costs and expenses | 202 | 209 | 309 | |
Deductions | [1] | 86 | 155 | 291 |
Balance at end of period | 483 | 367 | 313 | |
Reserve for Future Returns and Pricing Adjustments | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | 1,662 | 1,770 | 1,362 | |
Increase (Decrease) to costs and expenses | 7,002 | 6,526 | 6,973 | |
Deductions | 6,847 | 6,634 | 6,565 | |
Balance at end of period | $ 1,817 | $ 1,662 | $ 1,770 | |
[1] | Uncollectible accounts charged against allowance, net of recoveries |