Digi International (DGII) 10-Q 3 Feb 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2015	Jan. 29, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	DIGI INTERNATIONAL INC.
Entity Central Index Key	854,775
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		25,805,370

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenue:
Hardware product	$ 48,247	$ 44,933
Service	2,012	2,285
Total revenue	50,259	47,218
Cost of sales:
Cost of hardware product	24,710	23,112
Cost of service	1,192	1,549
Total cost of sales	25,902	24,661
Gross profit	24,357	22,557
Operating expenses:
Sales and marketing	8,518	10,235
Research and development	7,838	7,083
General and administrative	4,061	4,775
Restructuring charge	651	0
Total operating expenses	21,068	22,093
Operating income	3,289	464
Other income, net:
Interest income, net	100	38
Other income, net	123	388
Total other income, net	223	426
Income from continuing operations, before income taxes	3,512	890
Income tax provision (benefit)	381	(128)
Income continuing operations	3,131	1,018
Income (loss) from discontinued operations, after income taxes	3,319	(1,357)
Net income (loss)	$ 6,450	$ (339)
Basic net income (loss) per common share:
Continuing operations, basic (USD per share)	$ 0.12	$ 0.04
Discontinued operations, basic (USD per share)	0.13	(0.06)
Total, basic (USD per share)	0.25	(0.01)
Diluted net income (loss) per common share
Continuing operations, diluted (USD per share)	0.12	0.04
Discontinued operations, diluted (USD per share)	0.13	(0.06)
Total, diluted (USD per share)	$ 0.25	$ (0.01)
Weighted average common shares:
Basic (shares)	25,331	24,150
Diluted (shares)	26,171	24,462

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands		3 Months Ended
		Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income (loss)		$ 6,450	$ (339)
Other comprehensive loss, net of tax:
Foreign currency translation adjustment		(1,867)	(2,373)
Change in net unrealized loss on investments		(63)	(29)
Less income tax benefit		23	11
Reclassification of realized loss on investments included in net income	[1]	(7)	0
Less income tax benefit	[2]	3	0
Other comprehensive loss, net of tax		(1,911)	(2,391)
Comprehensive income (loss)		$ 4,539	$ (2,730)
[1]	Recorded in Other income, net on our Condensed Consolidated Statements of Operations.
[2]	Recorded in Income tax provision (benefit) in our Condensed Consolidated Statements of Operations.

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 52,190	$ 45,018
Marketable securities	50,202	47,191
Accounts receivable, net	24,931	27,788
Inventories	30,115	31,877
Deferred tax assets	0	3,252
Receivable from sale of business	2,952	0
Other	4,734	3,435
Current assets of discontinued operations	0	1,624
Total current assets	165,124	160,185
Marketable securities, long-term	11,524	13,626
Property, equipment and improvements, net	14,156	14,339
Identifiable intangible assets, net	5,061	2,648
Goodwill	110,244	100,183
Deferred tax assets	7,927	6,255
Receivable from sale of business	1,930	0
Other	300	250
Non-current assets of discontinued operations	0	2,874
Total assets	316,266	300,360
Current liabilities:
Accounts payable	6,904	6,673
Income taxes payable	151	828
Accrued compensation	5,248	10,156
Accrued warranty	968	1,014
Contingent consideration on acquired business	833	0
Other	4,201	3,037
Current liabilities of discontinued operations	0	1,481
Total current liabilities	18,305	23,189
Income taxes payable	1,349	1,546
Deferred tax liabilities	720	135
Contingent consideration on acquired business	9,567	0
Other non-current liabilities	809	457
Non-current liabilities of discontinued operations	0	95
Total liabilities	$ 30,750	$ 25,422
Contingencies (see Note 11)
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; 32,229,363 and 31,534,198 shares issued	322	315
Additional paid-in capital	233,544	227,367
Retained earnings	130,854	124,404
Accumulated other comprehensive loss	(24,524)	(22,613)
Treasury stock, at cost, 6,489,587 and 6,487,248 shares	(54,680)	(54,535)
Total stockholders' equity	285,516	274,938
Total liabilities and stockholders' equity	$ 316,266	$ 300,360

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Dec. 31, 2015	Sep. 30, 2015
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	32,229,363	31,534,198
Treasury stock, shares	6,489,587	6,487,248

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Operating activities:
Net income (loss)	$ 6,450	$ (339)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation of property, equipment and improvements	724	752
Amortization of identifiable intangible assets	468	770
Stock-based compensation	816	1,184
Excess tax benefits from stock-based compensation	(190)	0
Deferred income tax provision	1,300	412
Gain on sale of business	(2,912)	0
Bad debt/product return provision	168	30
Inventory obsolescence	409	230
Restructuring charge	651	0
Other	40	(6)
Changes in operating assets and liabilities	(4,369)	2,310
Net cash provided by operating activities	3,555	5,343
Investing activities:
Purchase of marketable securities	(8,079)	(12,135)
Proceeds from maturities of marketable securities	7,106	9,321
Proceeds from sale of business	2,866	0
Acquisition of business, net of cash acquired	2,860	0
Purchase of property, equipment, improvements and certain other intangible assets	(545)	(1,469)
Net cash used in investing activities	(1,512)	(4,283)
Financing activities:
Excess tax benefits from stock-based compensation	190	0
Proceeds from stock option plan transactions	5,752	9
Proceeds from employee stock purchase plan transactions	301	261
Purchases of common stock	(403)	(2,257)
Net cash provided by (used in) financing activities	5,840	(1,987)
Effect of exchange rate changes on cash and cash equivalents	(711)	(1,520)
Net increase (decrease) in cash and cash equivalents	7,172	(2,447)
Cash and cash equivalents, beginning of period	45,018	47,490
Cash and cash equivalents, end of period	52,190	45,043
Supplemental schedule of non-cash investing activities
Receivable related to sale of business	5,015	0
Liability related to acquisition of business	$ (10,550)	$ 0

Basis of Presentation of Unaudi

Basis of Presentation of Unaudited Interim Condensed Consolidated Financial Statements and Significant Accounting Policies	3 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANTACCOUNTING POLICIES	BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The interim unaudited condensed consolidated financial statements included in this Form 10-Q have been prepared by Digi International Inc. (the “Company,” “Digi,” “we,” “our,” or “us”) pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures, normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto, including (but not limited to) the summary of significant accounting policies, presented in our Annual Report on Form 10-K for the year ended September 30, 2015 as filed with the SEC (“2015 Financial Statements”). On October 23, 2015, we sold all of the outstanding stock of our wholly owned subsidiary, Etherios Inc. (Etherios) to West Monroe Partners, LLC. Because the sale of Etherios represented a strategic shift that will have a major effect on our operations and financial results, we have classified our Etherios business as discontinued operations and have therefore segregated its operating results from continuing operations in our Condensed Consolidated Statement of Operations for all periods presented. We have also segregated the assets and liabilities of Etherios on our Condensed Consolidated Balance Sheet for September 30, 2015. For this first fiscal quarter ending December 31, 2015, we adopted Accounting Standards Update (“ASU”) 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” on a prospective basis. As required by ASU 2015-17, all deferred tax assets and liabilities are classified on a jurisdictional basis as non-current in our condensed consolidated balance sheets, which is a change from our historical presentation whereby certain of our deferred tax assets and liabilities were classified as current and the remainder were classified as non-current. Our prior periods were not retrospectively adjusted. The condensed consolidated financial statements presented herein reflect, in the opinion of management, all adjustments which consist only of normal, recurring adjustments necessary for a fair statement of the condensed consolidated balance sheets and condensed consolidated statements of operations, comprehensive income (loss) and cash flows for the periods presented. The condensed consolidated results of operations for any interim period are not necessarily indicative of results for the full year. The year-end condensed consolidated balance sheet data were derived from our 2015 Financial Statements, but do not include all disclosures required by U.S. GAAP. Recently Issued Accounting Pronouncements Adopted In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. ASU 2015-17 simplified the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as non-current in the balance sheet. The amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods and may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early adoption is permitted. We elected to early adopt ASU 2015-17 beginning this fiscal quarter ending December 31, 2015. Other than the revised balance sheet presentation of deferred tax assets and liabilities from current to non-current, the adoption of this standard did not have a material impact to our consolidated financial statements. 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 elected to early adopt ASU 2015-16 beginning this fiscal quarter ending December 31, 2015. The adoption of this standard did not have a material impact to our consolidated financial statements. 1. BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Not Yet Adopted In January 2016, FASB issued ASU 2016-01, “Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 will require equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income. The amendments in this update will also simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, eliminate the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet and require these entities to use the exit price notion when measuring fair value of financial instruments for disclosure purposes. This ASU would also change the presentation and disclosure requirements for financial instruments. In addition, this ASU clarifies the guidance related to valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The amendments in this Update are effective for fiscal years beinning after December 15, 2017, including interim periods within those fiscal years, which for us is the first fiscal quarter ending December 31, 2018. Early adoption is permitted for financial statements of fiscal years and interim periods that have not been issued. We are currently evaluating the impact of the adoption of ASU 2016-01. 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 or 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 our annual period 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. 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 will adopt the guidance for our fiscal 2019 and are currently assessing the potential impact of adopting this ASU on our consolidated financial statements and related disclosures.

Acquisition

Acquisition	3 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
Acquisition	ACQUISITION Acquisition of Bluenica Corporation On October 5, 2015 we purchased all of the outstanding stock of Bluenica Corporation (“Bluenica”), 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. This acquisition forms the basis for our Digi Cold Chain solutions. 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. Each of the earn-out payments will be calculated based on the revenue performance of Digi Cold Chain solutions for each respective earn-out period. 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. The fair value of this contingent consideration was $10.4 million at December 31, 2015 (see Note 7 to the Condensed Consolidated Financial Statements). 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. Costs related to the acquisition, which include legal, accounting and valuation fees, of approximately of $0.1 million have been charged directly to operations and are included in general and administrative expense in our Condensed Consolidated Statements of Operations in fiscal 2016. The purchase price was allocated to the estimated fair value of assets acquired and liabilities assumed. The purchase price allocation resulted in the recognition of $11.0 million of goodwill. We believe that the acquisition resulted in the recognition of goodwill because this is a complementary acquisition for us and will provide a source of recurring revenue in a new vertically focused solutions business. Bluenica’s operating results are included in our Consolidated Results of Operations from October 6, 2015. The Consolidated Balance Sheet as of December 31, 2015 reflects the allocation of the purchase price to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The Bluenica acquisition has been accounted for using the acquisition method of accounting which requires, among other things, that assets acquired and liabilities assumed pursuant to the stock purchase agreement be recognized at fair value as of the acquisition date. Certain estimated values are not yet finalized (see below) and are subject to change, which could be significant. We will finalize the amounts recognized as information necessary to complete the analysis is obtained. We expect to finalize these amounts not later than the end of our third quarter of fiscal 2016. The following items remain subject to change: • certain intangible assets and the contingent consideration liability pending the finalization of valuation procedures; • amounts for deferred tax assets and liabilities, pending the finalization of final tax returns. The following table summarizes the values of Bluenica assets acquired and liabilities assumed as of the acquisition date. To the extent previously discussed, such amounts are considered preliminary (in thousands): Cash $ 2,888 Purchase price payable upon completion of diligence matters 115 Fair value of contingent consideration on acquired business 10,400 Total purchase price consideration $ 13,403 Fair value of net tangible assets acquired $ 129 Fair value of identifiable intangible assets acquired: Purchased and core technology 2,000 Customer relationships 900 Goodwill 11,020 Deferred tax liabilities, net (646 ) Total $ 13,403 2. ACQUISITION (CONTINUED) The weighted average useful life for all the identifiable intangibles listed above is 5.6 years. For purposes of determining fair value, the purchased and core technology identified above is assumed to have a useful life of five years and the customer relationships are assumed to have useful live of seven years. 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. We have determined that the Bluenica acquisition is not material to our consolidated results of operations or financial position, therefore, pro forma financial information is not required to be presented.

Discontinued Operations

Discontinued Operations	3 Months Ended
	Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	DISCONTINUED OPERATIONS On October 23, 2015, we sold all the outstanding stock of our wholly owned subsidiary, Etherios, Inc. (Etherios) to West Monroe Partners, LLC. We sold Etherios as part of a strategy to focus on providing highly reliable machine connectivity solutions for business-critical and mission-critical application environments. Etherios was included in our single operating segment. We sold Etherios for $9.0 million , less certain purchase price adjustments as described below. Of the total purchase price, $4.0 million , less employee related liabilities of approximately $1.1 million , was paid to us at closing. Below is a summary of the gain on sale subject to final working capital adjustments (in thousands): Cash received at closing $ 4,000 Less: Employee related liabilities (1,134 ) Net cash proceeds at closing 2,866 Present value of receivable due on October 23, 2016 2,941 Present value of receivable due on October 23, 2017 1,922 Receivable for selling price adjustments 152 Total fair value of consideration received 7,881 Less: Net assets of Etherios, Inc. (3,383 ) Facility abandonment costs (856 ) Transaction costs, primarily professional fees (730 ) Gain on sale of discontinued operations, before income taxes $ 2,912 The terms of the sale agreement include that West Monroe Partners LLC will pay the Company $3.0 million on October 23, 2016 and $2.0 million of October 23, 2017. The present value of these amounts is included with the total fair value of consideration received. These receivable amounts are unsecured and non-interest bearing. Goodwill has been included in in the net assets of Etherios, Inc. based on a relative fair value of Etherios, Inc. compared to the fair value of the Company. As a condition to the sale agreement, we retained the operating leases in the Dallas and Chicago locations. Digi is no longer using these facilities and has sublet the Dallas location to West Monroe Partners, LLC through April 30, 2016. Also in connection with the sale, we assigned our San Francisco lease to West Monroe Partners, LLC. A remaining potential obligation exists in the event of a default under the assigned lease, however, we believe the likelihood of a liability related to this lease is remote. As of December 31, 2015, the future minimum lease payments for the San Francisco lease are approximately $0.2 million . 3. DISCONTINUED OPERATIONS (CONTINUED) Income (loss) from discontinued operations, after tax, as presented in the Condensed Consolidated Statements of Operations for the three months ended December 31, 2015 and 2014 is as follows (in thousands): Three months ended December 31, 2015 2014 Service revenue $ 891 $ 1,505 Cost of service 713 2,140 Gross profit (loss) 178 (635 ) Operating expenses: Sales and marketing 148 557 Research and development 103 479 General and administrative 43 413 Total operating expenses 294 1,449 Loss from discontinued operations, before income taxes (116 ) (2,084 ) Gain on sale of discontinued operations, before income taxes 2,912 — Total income (loss) from discontinued operations, before income taxes 2,796 (2,084 ) Income tax benefit on discontinued operations (523 ) (727 ) Income (loss) from discontinued operations, after income taxes $ 3,319 $ (1,357 ) Income tax benefit on discontinued operations for the three months ended December 31, 2015 was $0.5 million and primarily represents income tax benefits for deductible transaction costs, partially offset by a tax expense for equity awards for which we will not receive a tax deduction. For tax purposes, we expect that this transaction will result in a capital loss, as the tax basis of the Etherios stock was higher than the book basis of the assets that were sold. Since we do not expect to be able to utilize this capital loss in the five year carryforward period, a deferred tax asset offset by a full valuation allowance is expected to be recorded upon completion of the capital loss calculation. At September 30, 2015, the carrying amounts of major classes of assets and liabilities of discontinued operations included in the Consolidated Balance Sheet was as follows (in thousands): September 30, 2015 Current assets: Accounts receivable, net $ 1,417 Deferred tax assets 127 Other current assets 80 Total current assets 1,624 Property, equipment and improvements, net 18 Identifiable intangible assets, net 1,531 Goodwill 1,914 Deferred tax assets (1) (589 ) Total assets of discontinued operations $ 4,498 Current liabilities: Accounts payable $ 50 Accrued compensation 1,346 Other current liabilities 85 Total current liabilities 1,481 Other non-current liabilities 95 Total liabilities of discontinued operations $ 1,576 (1) As of September 30, 2015, the we had a net deferred income tax asset related to the United States federal jurisdiction. That net deferred income tax asset position included a deferred income tax liability of $589 thousand related to Etherios, Inc., which was entirely in the United States federal tax jurisdiction. 3. DISCONTINUED OPERATIONS (CONTINUED) The following table presents amortization, depreciation and purchases of property, equipment, improvements and certain other intangible assets of the discontinued operations related to Etherios (in thousands): Three months ended December 31, 2015 2014 Amortization of identifiable intangible assets $ 30 $ 121 Depreciation of property, equipment and improvements $ — $ 6 Purchases of property, equipment, improvements and certain other intangible assets $ — $ (17 )

Earnings Per Share

Earnings Per Share	3 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Basic net income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares result from dilutive common stock options and restricted stock units. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common shares. Since we reported discontinued operations, we used income from continuing operations as our control to determine whether potential common shares are dilutive or anti-dilutive. In our case for three months ended December 31, 2014, since we had income from continuing operations, we included all potentially dilutive common equivalent shares in our calculation of earnings per diluted share for income from continuing operations, loss on discontinued operations and net loss. The following table is a reconciliation of the numerators and denominators in the net income (loss) per common share calculations (in thousands, except per common share data): Three months ended December 31, 2015 2014 Numerator: Income from continuing operations $ 3,131 $ 1,018 Income (loss) from discontinued operations, after income taxes 3,319 (1,357 ) Net income (loss) $ 6,450 $ (339 ) Denominator: Denominator for basic net income (loss) per common share — weighted average shares outstanding 25,331 24,150 Effect of dilutive securities: Stock options and restricted stock units 840 312 Denominator for diluted net income (loss) per common share — adjusted weighted average shares 26,171 24,462 Basic net income (loss) per common share Continuing operations $ 0.12 $ 0.04 Discontinued operations $ 0.13 $ (0.06 ) Net income (loss) $ 0.25 $ (0.01 ) Diluted net income (loss) per common share Continuing operations $ 0.12 $ 0.04 Discontinued operations $ 0.13 $ (0.06 ) Net income (loss) $ 0.25 $ (0.01 ) For the three months ended December 31, 2015 and 2014 , there were 902,084 and 5,676,561 potentially dilutive shares, respectively, related to stock options to purchase common shares that were not included in the above computation of diluted earnings per common share. This is because the options’ exercise prices were greater than the average market price of our common shares.

Selected Balance Sheet Data

Selected Balance Sheet Data	3 Months Ended
	Dec. 31, 2015
Selected Balance Sheet Data [Abstract]
SELECTED BALANCE SHEET DATA	SELECTED BALANCE SHEET DATA (in thousands) December 31, 2015 September 30, 2015 Accounts receivable, net: Accounts receivable $ 25,263 $ 28,073 Less allowance for doubtful accounts 332 285 Accounts receivable, net $ 24,931 $ 27,788 Inventories: Raw materials $ 23,922 $ 26,037 Work in process 842 598 Finished goods 5,351 5,242 Inventories $ 30,115 $ 31,877 Inventories are stated at the lower of cost or market value, with cost determined using the first-in, first-out method.

Marketable Securities

Marketable Securities	3 Months Ended
	Dec. 31, 2015
Marketable Securities [Abstract]
MARKETABLE SECURITIES	MARKETABLE SECURITIES Our marketable securities consist of certificates of deposit, commercial paper, corporate bonds and government municipal bonds. We analyze our available-for-sale marketable securities for impairment on an ongoing basis. When we perform this analysis, we consider factors such as the length of time and extent to which the securities have been in an unrealized loss position and the trend of any unrealized losses. We also consider whether an unrealized loss is a temporary loss or an other-than-temporary loss based on factors such as: (a) whether we have the intent to sell the security, (b) whether it is more likely than not that we will be required to sell the security before its anticipated recovery, or (c) permanent impairment due to bankruptcy or insolvency. In order to estimate the fair value for each security in our investment portfolio, we obtain quoted market prices and trading activity for each security where available. We obtain relevant information from our investment advisor and, if warranted, also may review the financial solvency of certain security issuers. As of December 31, 2015 , 69 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 three years. During the three months ended December 31, 2015 and 2014 , we received proceeds from our available-for-sale marketable securities of $7.1 million and $9.3 million , respectively. At December 31, 2015 our marketable securities were (in thousands): Amortized Cost (1) Unrealized Gains Unrealized Losses Fair Value (1) Current marketable securities: Corporate bonds $ 32,844 $ 1 $ (60 ) $ 32,785 Commercial paper 7,990 — (6 ) 7,984 Certificates of deposit 6,257 1 — 6,258 Government municipal bonds 3,180 — (5 ) 3,175 Current marketable securities 50,271 2 (71 ) 50,202 Non-current marketable securities: Corporate bonds 4,051 — (29 ) 4,022 Certificates of deposit 7,526 — (24 ) 7,502 Non-current marketable securities 11,577 — (53 ) 11,524 Total marketable securities $ 61,848 $ 2 $ (124 ) $ 61,726 (1) Included in amortized cost and fair value is purchased and accrued interest of $374 . 6. MARKETABLE SECURITIES (CONTINUED) 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 ) 1,231 Current marketable securities 47,224 8 (41 ) 47,191 Non-current marketable securities: Corporate bonds 4,138 — (12 ) 4,126 Certificates of deposit 7,511 2 (6 ) 7,507 Government municipal bonds 1,996 — (3 ) 1,993 Non-current marketable securities 13,645 2 (21 ) 13,626 Total marketable securities $ 60,869 $ 10 $ (62 ) $ 60,817 (1) Included in amortized cost and fair value is purchased and accrued interest of $252 . The following tables show the fair values and gross unrealized losses of our available-for-sale marketable securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category (in thousands): December 31, 2015 Less than 12 Months More than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 29,496 $ (88 ) $ 5,000 $ (1 ) Commercial paper 5,985 (6 ) — — Certificates of deposit 10,728 (22 ) 498 (2 ) Government municipal bonds 3,121 (5 ) — — Total $ 49,330 $ (121 ) $ 5,498 $ (3 ) 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 )

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 31, 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 7. FAIR VALUE MEASUREMENTS (CONTINUED) reflect our assumptions about the factors market participants would use in valuing the asset or liability based upon the best information available in the circumstances. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable for the asset or liability and their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 may also include certain investment securities for which there is limited market activity or a decrease in the observability of market pricing for the investments, such that the determination of fair value requires significant judgment or estimation. Fair value is applied to financial assets such as our marketable securities, which are classified and accounted for as available-for-sale. These items are stated at fair value at each reporting period using the above guidance. The following tables provide information by level for financial assets and liabilities that are measured at fair value on a recurring basis (in thousands): Total carrying value at Fair Value Measurements Using Inputs Considered as December 31, 2015 Level 1 Level 2 Level 3 Cash equivalents: Money market $ 17,550 $ 17,550 $ — $ — Available-for-sale marketable securities: Corporate bonds 36,807 — 36,807 — Commercial paper 7,984 — 7,984 — Certificates of deposit 13,760 — 13,760 — Government municipal bonds 3,175 — 3,175 — Total cash equivalents and marketable securities measured at fair value $ 79,276 $ 17,550 $ 61,726 $ — Contingent consideration on acquired business $ (10,400 ) $ — $ — $ (10,400 ) Total carrying value at Fair Value Measurements Using Inputs Considered as September 30, 2015 Level 1 Level 2 Level 3 Cash equivalents: Money market $ 14,436 $ 14,436 $ — $ — Available-for-sale marketable securities: Corporate bonds 35,840 — 35,840 — Commercial paper 7,985 — 7,985 — Certificates of deposit 13,768 — 13,768 — Government municipal bonds 3,224 — 3,224 — Total cash equivalents and marketable securities measured at fair value $ 75,253 $ 14,436 $ 60,817 $ — Our money market funds, which have been determined to be cash equivalents, are measured at fair value using quoted market prices in active markets for identical assets and are therefore classified as Level 1 assets. We value our Level 2 assets using inputs that are based on market indices of similar assets within an active market. There were no transfers into or out of our Level 2 financial assets during the three months ended December 31, 2015 . 7. FAIR VALUE MEASUREMENTS (CONTINUED) In connection with the Bluenica acquisition discussed in Note 2, we are required to make contingent payments over a period of up to four years, subject to Digi Cold Chain solutions achieving specified revenue thresholds. The fair value of the liability for contingent payments recognized upon acquisition was $10.4 million , and was estimated by discounting to present value the probability-weighted contingent payments expected to be made. Assumptions used in this calculation included the discount rate and various probability factors. This liability is considered to be a Level 3 financial liabiility that is re-measured each reporting period. Changes in the fair value of this liability will be included in SG&A expense in the consolidated statements of operations. The use of different assumptions, applying different judgment to matters that inherently are subjective and changes in future market conditions could result in different estimates of fair value of our securities, currently and in the future. If market conditions deteriorate, we may incur impairment charges for securities in our investment portfolio.

Goodwill and Other Identifiable

Goodwill and Other Identifiable Intangible Assets, Net	3 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET	GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET Amortizable identifiable intangible assets were (in thousands): December 31, 2015 September 30, 2015 Gross carrying amount Accum. amort. Net Gross carrying amount Accum. amort. Net Purchased and core technology $ 47,190 $ (45,345 ) $ 1,845 $ 45,449 $ (45,424 ) $ 25 License agreements 18 (4 ) 14 18 (4 ) 14 Patents and trademarks 11,491 (10,550 ) 941 11,377 (10,385 ) 992 Customer relationships 17,827 (15,566 ) 2,261 17,090 (15,473 ) 1,617 Total $ 76,526 $ (71,465 ) $ 5,061 $ 73,934 $ (71,286 ) $ 2,648 Amortization expense was $0.4 million and $0.6 million for the three month periods ended December 31, 2015 and 2014 , respectively. Amortization expense is recorded on our consolidated statements of operations within cost of sales and in general and administrative expense. Estimated amortization expense related to identifiable intangible assets for the remainder of fiscal 2016 and the five succeeding fiscal years is (in thousands): 2016 (nine months) $ 1,160 2017 963 2018 574 2019 449 2020 215 2021 69 The changes in the carrying amount of goodwill are (in thousands): Three months ended 2015 2014 Beginning balance, October 1 $ 100,183 $ 101,484 Acquisition of Bluenica Corporation 11,020 — Foreign currency translation adjustment (959 ) (724 ) Ending balance, December 31 $ 110,244 $ 100,760 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. 8. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET (CONTINUED) Our test for potential goodwill impairment is a two-step approach. We estimate the fair value for our one reporting unit by comparing its fair value (market capitalization plus control premium) to our carrying value. If the carrying value of the reporting unit exceeds its estimated fair value, the second step of the goodwill impairment analysis requires us to measure the amount of the impairment loss. An impairment loss is calculated by comparing the implied fair value of the goodwill to its carrying amount. To calculate the implied fair value of goodwill, the fair value of the reporting unit’s assets and liabilities, excluding goodwill, is estimated. The excess of the fair value of the reporting unit over the amount assigned to its assets and liabilities, excluding goodwill, is the implied fair value of the reporting unit’s goodwill. At June 30, 2015 , our market capitalization was $238.6 million compared to our carrying value of $270.6 million . Our market capitalization plus our estimated control premium of 35% (discussed in the paragraphs below) resulted in a fair value in excess of our carrying value by a margin of 19% . We concluded that no impairment was indicated and we were not required to complete the second step of the goodwill impairment analysis. No goodwill impairment charges were recorded. In June 2014, we performed a control premium study to determine the appropriate control premium to include in the calculation of fair value. We used a third party valuation firm to assist us in performing this control premium analysis. In order to estimate the range of control premiums appropriate for us, the following three methodologies were used: (1) analysis of individual transactions within our industry; (2) analysis of industry-wide data, and (3) analysis of global transaction data. Individual transactions in the Communication Equipment or Technology Hardware, Storage and Peripherals industries were used to find transactions of target companies that operated in similar markets and shared similar operating characteristics with us. Transaction screening criteria included selection of transactions with the following characteristics: • At least 50 percent of a target company’s equity sought by an acquirer, • Target company considered operating (not in bankruptcy), • Target company had publicly traded stock outstanding at the transaction date, and • Transactions announced between June 30, 2009 and the valuation date. In analyzing industry-wide data, transactions in the following three industries were identified that encompassed the products offered by us: Office Equipment and Computer Hardware, Communications, and Computer, Supplies and Services. Finally, control premiums were considered for both domestic and international transactions. The control premium analysis resulted in a range of control premium of 30 percent to 40 percent . We reviewed the data and concluded that a 35 percent control premium best represented the amount an investor would likely pay, over and above market capitalization, in order to obtain a controlling interest given the economic conditions at that time. Based on our industry knowledge, including recent industry merger and acquisition activity, we concluded that the control premium study that was performed as of June 2014 was still an appropriate study to use for our June 30, 2015 goodwill impairment assessment. If our stock price or control premium declines, the first step of our goodwill impairment analysis may fail. We have identified factors that could result in additional interim goodwill impairment testing. For example, we would perform the second step of the impairment testing if our stock price fell below certain thresholds for a significant period of time, or if our control premium significantly decreased. Events or circumstances may occur that could negatively impact our stock price, including changes in our anticipated revenues and profits and our ability to execute on our strategies. In addition, our control premium could decline due to changes in economic conditions in the technology industry or more generally in the financial markets. An impairment could have a material effect on our consolidated balance sheet and results of operations. We have had no goodwill impairment losses since the adoption of Accounting Standards Codification (ASC) 350, Intangibles-Goodwill and Others, in fiscal 2003.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Income tax provision for continuing operations was $0.4 million for the three month period ended December 31, 2015 . Net tax benefits specific to the three months ended December 31, 2015 were $0.7 million resulting from the reinstatement of the federal research and development tax credit for calendar year 2015 and reversal of tax reserves due to the expiration of statutes of limitation from U.S. and foreign tax jurisdictions. For the three month period ended December 31, 2015 , our continuing operations effective tax rate before items specific to the period was less than the U.S. statutory rate due primarily in the mix of income between taxing jurisdictions, certain of which have lower statutory tax rates than the U.S., and reinstatement of the federal research and development tax credit. 9. INCOME TAXES (CONTINUED) Income tax benefit for continuing operations was $0.1 million for the three month period ended December 31, 2014 . Net tax benefits specific to the period of $0.5 million included a reversal of reserves due to the expiration of statutes of limitation from U.S. and foreign tax jurisdictions and the reinstatement of the federal research and development tax credit for calendar year 2014. For the three month period ended December 31, 2014 , our continuing operations effective tax rate before items specific to the period was more than the statutory rate primarily due to a mix of income between foreign jurisdications, an adjustment for certain foreign income taxes at the U.S. rate, and lower than expected benefits associated with certain state tax credits. Our effective tax rate will vary based on a variety of factors, including overall profitability, the geographical mix of income before taxes and related statutory tax rate in each jurisdiction, and tax items specific to the period, such as settlements of audits. We expect that we may record other benefits or expenses in the future that are specific to a particular quarter such as expiration of statutes of limitation, the completion of tax audits, or legislation that is enacted for both U.S. and foreign jurisdictions. During the three months ending December 31, 2015, we adopted ASU 2015-17 on a prospective basis. As required by ASU 2015-17, all deferred tax assets and liabilities are classified on a jurisdictional basis as non-current in our condensed consolidated balance sheets, which is a change from our historical presentation whereby certain of our deferred tax assets and liabilities were classified as current and the remainder were classified as non-current. Our prior periods were not retrospectively adjusted. A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands): Unrecognized tax benefits as of September 30, 2015 $ 1,618 Increases related to: Prior year income tax positions 60 Decreases related to: Expiration of statute of limitations (121 ) Unrecognized tax benefits as of December 31, 2015 $ 1,557 The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate is $1.3 million , after considering the impact of interest and deferred benefit items. We expect the change in the total amount of unrecognized tax benefits will be insignificant over the next 12 months.

Product Warranty Obligation

Product Warranty Obligation	3 Months Ended
	Dec. 31, 2015
Product Warranties Disclosures [Abstract]
PRODUCT WARRANTY OBLIGATION	PRODUCT WARRANTY OBLIGATION In general, we warrant our products to be free from defects in material and workmanship under normal use and service. The warranty periods generally range from one to five years. We typically have the option to either repair or replace products we deem defective with regard to material or workmanship. Estimated warranty costs are accrued in the period that the related revenue is recognized based upon an estimated average per unit repair or replacement cost applied to the estimated number of units under warranty. These estimates are based upon historical warranty incidents and are evaluated on an ongoing basis to ensure the adequacy of the warranty accrual. The following table summarizes the activity associated with the product warranty accrual (in thousands) and is included on our Condensed Consolidated Balance Sheets within current liabilities: Balance at Warranties Settlements Balance at Period October 1 issued made December 31 Three months ended December 31, 2015 $ 1,014 $ 120 $ (166 ) $ 968 Three months ended December 31, 2014 $ 862 $ 291 $ (203 ) $ 950 We are not responsible for, and do not warrant that, custom software versions, created by original equipment manufacturer (OEM) customers based upon our software source code, will function in a particular way, will conform to any specifications or are fit for any particular purpose. Further, we do not indemnify these customers from any third-party liability as it relates to or arises from any customization or modifications made by the OEM customer.

Contingencies

Contingencies	3 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES On December 23, 2015, JSDQ Mesh Technologies LLC filed a complaint naming us as a defendant in federal court in the District of Delaware. The complaint included allegations against us and one other company pertaining to the infringement of four patents relating to mesh networking technology. The complaint seeks monetary and non-monetary relief. We cannot predict the outcome of this matter or estimate a range of loss at this time or whether it will have a materially adverse impact on our business prospects and our consolidated financial condition, results of operations or cash flow. In addition to the matter discussed above, in the normal course of business, we are subject to various claims and litigation. There can be no assurance that any claims by third parties, if proven to have merit, will not materially adversely affect our business, liquidity or financial condition.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Stock-based awards were granted under the 2014 Omnibus Incentive Plan (the “2014 Plan”) during the three months ended December 31, 2015 and 2014 . Upon stockholder approval of the 2014 Plan, we ceased granting awards under any prior plan. The authority to grant options under the 2014 Plan and set other terms and conditions rests with the Compensation Committee of the Board of Directors. The 2014 Plan authorizes the issuance of up to 2,250,000 common shares in connection with awards of stock options, stock appreciation rights, restricted stock, restricted stock units, performance-based full value awards or other stock-based awards. Eligible participants include our employees, our affiliates, non-employee directors of our Company and any consultant or advisor who is a natural person and provides services to us or our affiliates. Options that have been granted under the 2014 Plan typically vest over a four year service period and will expire if unexercised after eight years from the date of grant. Restricted stock awards (RSU's) that have been granted to Directors typically vest in one year. RSU's that have been granted to executives and employees typically vest in November over a four -year period. Awards may be granted under the 2014 Plan until January 27, 2024. Options under the 2014 Plan can be granted as either incentive stock options (ISOs) or non-statutory stock options (NSOs). The exercise price of options and the grant date price of restricted stock shall be determined by our Compensation Committee but shall not be less than the fair market value of our common stock based on the closing price on the date of grant. Upon exercise, we issue new shares of stock. Our equity plans and corresponding forms of award agreements generally have provisions allowing employees to elect to satisfy tax withholding obligations through the delivery of shares, having us retain a portion of shares issuable under the award or paying cash to us for the withholding. During the three months ended December 31, 2015, our employees forfeited 32,903 shares in order to satisfy $0.4 million of withholding tax obligations related to stock-based compensation, pursuant to terms of awards under our board and shareholder-approved compensation plans. As of December 31, 2015 , there were approximately 1,286,089 shares available for future grants under the 2014 Plan. Cash received from the exercise of stock options was $5.8 million during the three months ended December 31, 2015 and minimal during the three months ended December 31, 2014 . There were $0.2 million in excess tax benefits from stock-based compensation for the three months ended December 31, 2015 . There were no excess tax benefits from stock-based compensation during the three months ended December 31, 2014 . We sponsor an Employee Stock Purchase Plan (the Purchase Plan), covering all domestic employees with at least 90 days of continuous service and who are customarily employed at least 20 hours per week. The Purchase Plan allows eligible participants the right to purchase common stock on a quarterly basis at the lower of 85% of the market price at the beginning or end of each three -month offering period. Employee contributions to the Purchase Plan were $0.3 million during both the three month periods ended December 31, 2015 and 2014 . Pursuant to the Purchase Plan, 30,564 and 40,950 common shares were issued to employees during the three months ended December 31, 2015 and 2014 , respectively. Shares are issued under the Purchase Plan from treasury stock. As of December 31, 2015 , 586,967 common shares were available for future issuances under the Purchase Plan. 12. STOCK-BASED COMPENSATION (CONTINUED) Stock-based compensation expense is included in the consolidated results of operations as follows (in thousands): Three months ended December 31, 2015 2014 Cost of sales $ 54 $ 65 Sales and marketing 199 338 Research and development 148 154 General and administrative 410 525 Stock-based compensation before income taxes 811 1,082 Income tax benefit (257 ) (422 ) Stock-based compensation after income taxes $ 554 $ 660 Stock-based compensation cost capitalized as part of inventory was immaterial as of December 31, 2015 and September 30, 2015 . 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, 2015 4,800 $10.21 Granted 348 12.63 Exercised (611 ) 9.83 Forfeited / Canceled (426 ) 11.52 Balance at December 31, 2015 4,111 $10.34 4.9 $ 6,304 Exercisable at December 31, 2015 2,935 $10.49 4.0 $ 4,223 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $11.38 as of December 31, 2015 , which would have been received by the option holders had all option holders exercised their options as of that date. The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. The total intrinsic value of all options exercised during the three months ended December 31, 2015 was $1.6 million and during the three months ended December 31, 2014 was minimal. 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: Three months ended December 31, 2015 2014 Weighted average per option grant date fair value $4.30 $2.91 Assumptions used for option grants: Risk free interest rate 1.85% 1.77% - 1.85% Expected term 6.00 years 6.00 years Expected volatility 32% 35% - 36% Weighted average volatility 32% 35% Expected dividend yield 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 12. STOCK-BASED COMPENSATION (CONTINUED) purposes. The expected term of options granted is derived from the vesting period and historical information and represents the period of time that options granted are expected to be outstanding. The risk-free rate used is the zero-coupon U.S. Treasury bond rate in effect at the time of the grant whose maturity equals the expected term of the option. We use historical data to estimate pre-vesting forfeiture rates. The pre-vesting forfeiture rate used during the three months ended December 31, 2015 was 10.0% . As of December 31, 2015 the total unrecognized compensation cost related to non-vested stock options, net of expected forfeitures, was $3.5 million and the related weighted average period over which it is expected to be recognized is approximately 3.4 years. A summary of our non-vested restricted stock units as of December 31, 2015 and changes during the three 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, 2015 543 $ 8.41 Granted 121 $ 12.63 Vested (104 ) $ 7.79 Canceled (91 ) $ 8.11 Nonvested at December 31, 2015 469 $ 9.69 As of December 31, 2015 , the total unrecognized compensation cost related to non-vested restricted stock units was $3.1 million and the related weighted average period over which it is expected to be recognized is approximately 1.7 years.

Common Stock Repurchase

Common Stock Repurchase	3 Months Ended
	Dec. 31, 2015
Common Stock Repurchase [Abstract]
COMMON STOCK REPURCHASE	COMMON STOCK REPURCHASE On October 28, 2014, our Board of Directors authorized a program to repurchase up to $15.0 million of our common stock, primarily to return capital to shareholders and to support our employee stock purchase program. This repurchase authorization began on November 1, 2014 and expired on October 31, 2015. There were no shares repurchased under this program.

Restructuring

Restructuring	3 Months Ended
	Dec. 31, 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): Q1 2016 Restructuring Employee Other Total Balance at September 30, 2015 $ — $ — $ — Restructuring charge 480 171 651 Balance at December 31, 2015 $ 480 $ 171 $ 651 Q1 2016 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 also recorded a contract termination charge as we relocated our employees in our Minneapolis office to our corporate headquarters in Minnetonka in December 2015. We recorded a restructuring charge of $0.7 million that included $0.5 million of severance and $0.2 million of contract termination costs during the first quarter of fiscal 2016. This restructuring resulted in an elimination of approximately 10 positions. The payments associated with these charges are expected to be completed by the third quarter of fiscal 2016.

Basis of Presentation of Unau21

Basis of Presentation of Unaudited Interim Condensed Consolidated Financial Statements and Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Adopted In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. ASU 2015-17 simplified the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as non-current in the balance sheet. The amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods and may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early adoption is permitted. We elected to early adopt ASU 2015-17 beginning this fiscal quarter ending December 31, 2015. Other than the revised balance sheet presentation of deferred tax assets and liabilities from current to non-current, the adoption of this standard did not have a material impact to our consolidated financial statements. 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 elected to early adopt ASU 2015-16 beginning this fiscal quarter ending December 31, 2015. The adoption of this standard did not have a material impact to our consolidated financial statements. 1. BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Not Yet Adopted In January 2016, FASB issued ASU 2016-01, “Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 will require equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income. The amendments in this update will also simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, eliminate the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet and require these entities to use the exit price notion when measuring fair value of financial instruments for disclosure purposes. This ASU would also change the presentation and disclosure requirements for financial instruments. In addition, this ASU clarifies the guidance related to valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The amendments in this Update are effective for fiscal years beinning after December 15, 2017, including interim periods within those fiscal years, which for us is the first fiscal quarter ending December 31, 2018. Early adoption is permitted for financial statements of fiscal years and interim periods that have not been issued. We are currently evaluating the impact of the adoption of ASU 2016-01. 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 or 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 our annual period 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. 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 will adopt the guidance for our fiscal 2019 and are currently assessing the potential impact of adopting this ASU on our consolidated financial statements and related disclosures.

Acquisition (Tables)

Acquisition (Tables)	3 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the values of Bluenica assets acquired and liabilities assumed as of the acquisition date. To the extent previously discussed, such amounts are considered preliminary (in thousands): Cash $ 2,888 Purchase price payable upon completion of diligence matters 115 Fair value of contingent consideration on acquired business 10,400 Total purchase price consideration $ 13,403 Fair value of net tangible assets acquired $ 129 Fair value of identifiable intangible assets acquired: Purchased and core technology 2,000 Customer relationships 900 Goodwill 11,020 Deferred tax liabilities, net (646 ) Total $ 13,403

Discontinued Operations (Tables

Discontinued Operations (Tables)	3 Months Ended
	Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]
Disposal Groups, Including Discontinued Operations	At September 30, 2015, the carrying amounts of major classes of assets and liabilities of discontinued operations included in the Consolidated Balance Sheet was as follows (in thousands): September 30, 2015 Current assets: Accounts receivable, net $ 1,417 Deferred tax assets 127 Other current assets 80 Total current assets 1,624 Property, equipment and improvements, net 18 Identifiable intangible assets, net 1,531 Goodwill 1,914 Deferred tax assets (1) (589 ) Total assets of discontinued operations $ 4,498 Current liabilities: Accounts payable $ 50 Accrued compensation 1,346 Other current liabilities 85 Total current liabilities 1,481 Other non-current liabilities 95 Total liabilities of discontinued operations $ 1,576 (1) As of September 30, 2015, the we had a net deferred income tax asset related to the United States federal jurisdiction. That net deferred income tax asset position included a deferred income tax liability of $589 thousand related to Etherios, Inc., which was entirely in the United States federal tax jurisdiction. Below is a summary of the gain on sale subject to final working capital adjustments (in thousands): Cash received at closing $ 4,000 Less: Employee related liabilities (1,134 ) Net cash proceeds at closing 2,866 Present value of receivable due on October 23, 2016 2,941 Present value of receivable due on October 23, 2017 1,922 Receivable for selling price adjustments 152 Total fair value of consideration received 7,881 Less: Net assets of Etherios, Inc. (3,383 ) Facility abandonment costs (856 ) Transaction costs, primarily professional fees (730 ) Gain on sale of discontinued operations, before income taxes $ 2,912 Income (loss) from discontinued operations, after tax, as presented in the Condensed Consolidated Statements of Operations for the three months ended December 31, 2015 and 2014 is as follows (in thousands): Three months ended December 31, 2015 2014 Service revenue $ 891 $ 1,505 Cost of service 713 2,140 Gross profit (loss) 178 (635 ) Operating expenses: Sales and marketing 148 557 Research and development 103 479 General and administrative 43 413 Total operating expenses 294 1,449 Loss from discontinued operations, before income taxes (116 ) (2,084 ) Gain on sale of discontinued operations, before income taxes 2,912 — Total income (loss) from discontinued operations, before income taxes 2,796 (2,084 ) Income tax benefit on discontinued operations (523 ) (727 ) Income (loss) from discontinued operations, after income taxes $ 3,319 $ (1,357 ) The following table presents amortization, depreciation and purchases of property, equipment, improvements and certain other intangible assets of the discontinued operations related to Etherios (in thousands): Three months ended December 31, 2015 2014 Amortization of identifiable intangible assets $ 30 $ 121 Depreciation of property, equipment and improvements $ — $ 6 Purchases of property, equipment, improvements and certain other intangible assets $ — $ (17 )

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Schedule of Calculation of Numerator and Denominator in Earnings Per Share	The following table is a reconciliation of the numerators and denominators in the net income (loss) per common share calculations (in thousands, except per common share data): Three months ended December 31, 2015 2014 Numerator: Income from continuing operations $ 3,131 $ 1,018 Income (loss) from discontinued operations, after income taxes 3,319 (1,357 ) Net income (loss) $ 6,450 $ (339 ) Denominator: Denominator for basic net income (loss) per common share — weighted average shares outstanding 25,331 24,150 Effect of dilutive securities: Stock options and restricted stock units 840 312 Denominator for diluted net income (loss) per common share — adjusted weighted average shares 26,171 24,462 Basic net income (loss) per common share Continuing operations $ 0.12 $ 0.04 Discontinued operations $ 0.13 $ (0.06 ) Net income (loss) $ 0.25 $ (0.01 ) Diluted net income (loss) per common share Continuing operations $ 0.12 $ 0.04 Discontinued operations $ 0.13 $ (0.06 ) Net income (loss) $ 0.25 $ (0.01 )

Selected Balance Sheet Data (Ta

Selected Balance Sheet Data (Tables)	3 Months Ended
	Dec. 31, 2015
Selected Balance Sheet Data [Abstract]
Schedule of Selected Balance Sheet Data	(in thousands) December 31, 2015 September 30, 2015 Accounts receivable, net: Accounts receivable $ 25,263 $ 28,073 Less allowance for doubtful accounts 332 285 Accounts receivable, net $ 24,931 $ 27,788 Inventories: Raw materials $ 23,922 $ 26,037 Work in process 842 598 Finished goods 5,351 5,242 Inventories $ 30,115 $ 31,877

Marketable Securities (Tables)

Marketable Securities (Tables)	3 Months Ended
	Dec. 31, 2015
Marketable Securities [Abstract]
Schedule of Marketable Securities	At December 31, 2015 our marketable securities were (in thousands): Amortized Cost (1) Unrealized Gains Unrealized Losses Fair Value (1) Current marketable securities: Corporate bonds $ 32,844 $ 1 $ (60 ) $ 32,785 Commercial paper 7,990 — (6 ) 7,984 Certificates of deposit 6,257 1 — 6,258 Government municipal bonds 3,180 — (5 ) 3,175 Current marketable securities 50,271 2 (71 ) 50,202 Non-current marketable securities: Corporate bonds 4,051 — (29 ) 4,022 Certificates of deposit 7,526 — (24 ) 7,502 Non-current marketable securities 11,577 — (53 ) 11,524 Total marketable securities $ 61,848 $ 2 $ (124 ) $ 61,726 (1) Included in amortized cost and fair value is purchased and accrued interest of $374 . 6. MARKETABLE SECURITIES (CONTINUED) 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 ) 1,231 Current marketable securities 47,224 8 (41 ) 47,191 Non-current marketable securities: Corporate bonds 4,138 — (12 ) 4,126 Certificates of deposit 7,511 2 (6 ) 7,507 Government municipal bonds 1,996 — (3 ) 1,993 Non-current marketable securities 13,645 2 (21 ) 13,626 Total marketable securities $ 60,869 $ 10 $ (62 ) $ 60,817 (1) Included in amortized cost and fair value is purchased and accrued interest of $252 .
Schedule of Unrealized Losses on Available-For-Sale Securities	The following tables show the fair values and gross unrealized losses of our available-for-sale marketable securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category (in thousands): December 31, 2015 Less than 12 Months More than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 29,496 $ (88 ) $ 5,000 $ (1 ) Commercial paper 5,985 (6 ) — — Certificates of deposit 10,728 (22 ) 498 (2 ) Government municipal bonds 3,121 (5 ) — — Total $ 49,330 $ (121 ) $ 5,498 $ (3 ) 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 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value of Assets Measured on Recurring Basis	The following tables provide information by level for financial assets and liabilities that are measured at fair value on a recurring basis (in thousands): Total carrying value at Fair Value Measurements Using Inputs Considered as December 31, 2015 Level 1 Level 2 Level 3 Cash equivalents: Money market $ 17,550 $ 17,550 $ — $ — Available-for-sale marketable securities: Corporate bonds 36,807 — 36,807 — Commercial paper 7,984 — 7,984 — Certificates of deposit 13,760 — 13,760 — Government municipal bonds 3,175 — 3,175 — Total cash equivalents and marketable securities measured at fair value $ 79,276 $ 17,550 $ 61,726 $ — Contingent consideration on acquired business $ (10,400 ) $ — $ — $ (10,400 ) Total carrying value at Fair Value Measurements Using Inputs Considered as September 30, 2015 Level 1 Level 2 Level 3 Cash equivalents: Money market $ 14,436 $ 14,436 $ — $ — Available-for-sale marketable securities: Corporate bonds 35,840 — 35,840 — Commercial paper 7,985 — 7,985 — Certificates of deposit 13,768 — 13,768 — Government municipal bonds 3,224 — 3,224 — Total cash equivalents and marketable securities measured at fair value $ 75,253 $ 14,436 $ 60,817 $ —

Goodwill and Other Identifiab28

Goodwill and Other Identifiable Intangible Assets, Net (Tables)	3 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Amortizable Identifiable Intangible Assets	Amortizable identifiable intangible assets were (in thousands): December 31, 2015 September 30, 2015 Gross carrying amount Accum. amort. Net Gross carrying amount Accum. amort. Net Purchased and core technology $ 47,190 $ (45,345 ) $ 1,845 $ 45,449 $ (45,424 ) $ 25 License agreements 18 (4 ) 14 18 (4 ) 14 Patents and trademarks 11,491 (10,550 ) 941 11,377 (10,385 ) 992 Customer relationships 17,827 (15,566 ) 2,261 17,090 (15,473 ) 1,617 Total $ 76,526 $ (71,465 ) $ 5,061 $ 73,934 $ (71,286 ) $ 2,648
Schedule of Estimated Future Amortization Expense Related to Identifiable Intangible Assets	Estimated amortization expense related to identifiable intangible assets for the remainder of fiscal 2016 and the five succeeding fiscal years is (in thousands): 2016 (nine months) $ 1,160 2017 963 2018 574 2019 449 2020 215 2021 69
Schedule of Changes in Carrying Amount of Goodwill	The changes in the carrying amount of goodwill are (in thousands): Three months ended 2015 2014 Beginning balance, October 1 $ 100,183 $ 101,484 Acquisition of Bluenica Corporation 11,020 — Foreign currency translation adjustment (959 ) (724 ) Ending balance, December 31 $ 110,244 $ 100,760

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of Unrecognized Tax Benefits	A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands): Unrecognized tax benefits as of September 30, 2015 $ 1,618 Increases related to: Prior year income tax positions 60 Decreases related to: Expiration of statute of limitations (121 ) Unrecognized tax benefits as of December 31, 2015 $ 1,557

Product Warranty Obligation (Ta

Product Warranty Obligation (Tables)	3 Months Ended
	Dec. 31, 2015
Product Warranties Disclosures [Abstract]
Schedule of Product Warranty Accrual	The following table summarizes the activity associated with the product warranty accrual (in thousands) and is included on our Condensed Consolidated Balance Sheets within current liabilities: Balance at Warranties Settlements Balance at Period October 1 issued made December 31 Three months ended December 31, 2015 $ 1,014 $ 120 $ (166 ) $ 968 Three months ended December 31, 2014 $ 862 $ 291 $ (203 ) $ 950

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock-Based Compensation Expense	Stock-based compensation expense is included in the consolidated results of operations as follows (in thousands): Three months ended December 31, 2015 2014 Cost of sales $ 54 $ 65 Sales and marketing 199 338 Research and development 148 154 General and administrative 410 525 Stock-based compensation before income taxes 811 1,082 Income tax benefit (257 ) (422 ) Stock-based compensation after income taxes $ 554 $ 660
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, 2015 4,800 $10.21 Granted 348 12.63 Exercised (611 ) 9.83 Forfeited / Canceled (426 ) 11.52 Balance at December 31, 2015 4,111 $10.34 4.9 $ 6,304 Exercisable at December 31, 2015 2,935 $10.49 4.0 $ 4,223 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $11.38 as of December 31, 2015 , which would have been received by the option holders had all option holders exercised their options as of that date. The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price.
Schedule of Valuation Assumptions	The table below shows the weighted average fair value, which was determined based upon the fair value of each option on the grant date utilizing the Black-Scholes option-pricing model and the related assumptions: Three months ended December 31, 2015 2014 Weighted average per option grant date fair value $4.30 $2.91 Assumptions used for option grants: Risk free interest rate 1.85% 1.77% - 1.85% Expected term 6.00 years 6.00 years Expected volatility 32% 35% - 36% Weighted average volatility 32% 35% Expected dividend yield 0 0
Schedule of Nonvested Restricted Stock Units	A summary of our non-vested restricted stock units as of December 31, 2015 and changes during the three 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, 2015 543 $ 8.41 Granted 121 $ 12.63 Vested (104 ) $ 7.79 Canceled (91 ) $ 8.11 Nonvested at December 31, 2015 469 $ 9.69

Restructuring (Tables)

Restructuring (Tables)	3 Months Ended
	Dec. 31, 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): Q1 2016 Restructuring Employee Other Total Balance at September 30, 2015 $ — $ — $ — Restructuring charge 480 171 651 Balance at December 31, 2015 $ 480 $ 171 $ 651

Acquisition (Details)

Acquisition (Details) - USD ($) $ in Thousands	Oct. 05, 2015	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Business Acquisition [Line Items]
Goodwill		$ 110,244	$ 100,183	$ 100,760	$ 101,484
Bluenica Corporation
Business Acquisition [Line Items]
Cash paid at closing	$ 2,888
Earn-out payment installment period	4 years
Fair value of contingent consideration	$ 10,400
Acquisition costs		$ 100
Goodwill	11,020
Purchase price payable upon completion of diligence matters	115
Total purchase price consideration	13,403
Fair value of net tangible assets acquired	129
Deferred tax liabilities, net	(646)
Total assets acquired and liabilities assumed	$ 13,403
Weighted average use life of acquired intangibles	5 years 7 months 13 days
Purchased and Core Technology | Bluenica Corporation
Business Acquisition [Line Items]
Fair value of identifiable intangible assets acquired	$ 2,000
Useful life of finite lived intangibles	5 years
Customer Relationships | Bluenica Corporation
Business Acquisition [Line Items]
Fair value of identifiable intangible assets acquired	$ 900
Useful life of finite lived intangibles	7 years
Earn-out payments | Bluenica Corporation
Business Acquisition [Line Items]
Earn-out payment maximum	$ 11,600
Additional earn-out payment | Bluenica Corporation
Business Acquisition [Line Items]
Earn-out payment maximum	$ 3,500

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Thousands	Oct. 23, 2015	Oct. 23, 2017	Oct. 23, 2016	Dec. 31, 2015	Sep. 30, 2015
San Francisco
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Future minimum lease payments				$ 200
Etherios, Inc.
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration of disposal	$ 9,000
Etherios, Inc. | Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash received at closing	4,000
Employee related liabilities	$ 1,134
Etherios, Inc. | Discontinued Operations, Disposed of by Sale | United States Federal Tax Jurisdiction
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Deferred income tax liability					$ 589
Etherios, Inc. | Discontinued Operations, Disposed of by Sale | Forecast
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Deferred receivable from sale agreement		$ 2,000	$ 3,000

Discontinued Operations (Gain o

Discontinued Operations (Gain on Sale Subject to Working Capital Adjustments) (Details) - USD ($) $ in Thousands	Oct. 23, 2015	Dec. 31, 2015	Dec. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net cash proceeds at closing		$ 2,866	$ 0
Etherios, Inc. | Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash received at closing	$ 4,000
Less: Employee related liabilities	(1,134)
Net cash proceeds at closing	2,866
Present value of receivable due on October 23, 2016	2,941
Present value of receivable due on October 23, 2017	1,922
Receivable for selling price adjustments	152
Total fair value of consideration received	7,881
Less:
Net assets of Etherios, Inc.	(3,383)
Facility abandonment costs	(856)
Transaction costs, primarily professional fees	(730)
Gain on sale of discontinued operations, before income taxes	$ 2,912	$ 2,912	$ 0

Discontinued Operations (Income

Discontinued Operations (Income(loss) from Discontinued Operations, Net of Tax) (Details) - Etherios, Inc. - Discontinued Operations, Disposed of by Sale - USD ($) $ in Thousands	Oct. 23, 2015	Dec. 31, 2015	Dec. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Service revenue		$ 891	$ 1,505
Cost of service		713	2,140
Gross profit (loss)		178	(635)
Operating expenses:
Sales and marketing		148	557
Research and development		103	479
General and administrative		43	413
Total operating expenses		294	1,449
Loss from discontinued operations, before income taxes		(116)	(2,084)
Gain on sale of discontinued operations, before income taxes	$ 2,912	2,912	0
Total income (loss) from discontinued operations, before income taxes		2,796	(2,084)
Income tax benefit on discontinued operations		(523)	(727)
Income (loss) from discontinued operations, after income taxes		$ 3,319	$ (1,357)

Discontinued Operations (Assets

Discontinued Operations (Assets and Liabilities of Discontinued Ops) (Details) - USD ($) $ in Thousands		Dec. 31, 2015	Sep. 30, 2015
Current assets:
Total current assets		$ 0	$ 1,624
Current liabilities:
Total current liabilities		$ 0	1,481
Etherios, Inc. | Discontinued Operations, Disposed of by Sale
Current assets:
Accounts receivable, net			1,417
Deferred tax assets			127
Other current assets			80
Total current assets			1,624
Property, equipment and improvements, net			18
Identifiable intangible assets, net			1,531
Goodwill			1,914
Deferred tax assets	[1]		(589)
Total assets of discontinued operations			4,498
Current liabilities:
Accounts payable			50
Accrued compensation			1,346
Other current liabilities			85
Total current liabilities			1,481
Other non-current liabilities			95
Total liabilities of discontinued operations			$ 1,576
[1]	As of September 30, 2015, the we had a net deferred income tax asset related to the United States federal jurisdiction. That net deferred income tax asset position included a deferred income tax liability of $589 thousand related to Etherios, Inc., which was entirely in the United States federal tax jurisdiction.

Discontinued Operations (Amorti

Discontinued Operations (Amortization, Depreciation, and Purchase of PPE) (Details) - Etherios, Inc. - Discontinued Operations, Disposed of by Sale - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Amortization of identifiable intangible assets	$ 30	$ 121
Depreciation of property, equipment and improvements	0	6
Purchases of property, equipment, improvements and certain other intangible assets	$ 0	$ (17)

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Numerator:
Income continuing operations	$ 3,131	$ 1,018
Income (loss) from discontinued operations, after income taxes	3,319	(1,357)
Net income (loss)	$ 6,450	$ (339)
Denominator:
Denominator for basic net income (loss) per common share — weighted average shares outstanding	25,331,000	24,150,000
Effect of dilutive securities:
Stock options and restricted stock units	840,000	312,000
Denominator for diluted net income (loss) per common share — adjusted weighted average shares	26,171,000	24,462,000
Basic net income (loss) per common share:
Continuing operations, basic (USD per share)	$ 0.12	$ 0.04
Discontinued operations, basic (USD per share)	0.13	(0.06)
Net income (loss), basic (USD per share)	0.25	(0.01)
Diluted net income (loss) per common share
Continuing operations, diluted (USD per share)	0.12	0.04
Discontinued operations, diluted (USD per share)	0.13	(0.06)
Net income (loss), diluted (USD per share)	$ 0.25	$ (0.01)
Potentially dilutive securities excluded from computation of earnings per share	902,084	5,676,561

Selected Balance Sheet Data (De

Selected Balance Sheet Data (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Accounts receivable, net:
Accounts receivable	$ 25,263	$ 28,073
Less allowance for doubtful accounts	332	285
Accounts receivable, net	24,931	27,788
Inventories:
Raw materials	23,922	26,037
Work in process	842	598
Finished goods	5,351	5,242
Inventories	$ 30,115	$ 31,877

Marketable Securities (Details)

Marketable Securities (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2015USD ($)Security	Dec. 31, 2014USD ($)
Schedule of Available-for-sale Securities [Line Items]
Number of securities below amortized cost basis	69
Number of securities	81
Proceeds from maturities of marketable securities | $	$ 7,106	$ 9,321
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		Dec. 31, 2015		Sep. 30, 2015
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		$ 61,848	[1]	$ 60,869	[2]
Available-for-sale securities, unrealized gains		2		10
Available-for-sale securities, unrealized losses		(124)		(62)
Available-for-sale marketable securities, fair value		61,726	[1]	60,817	[2]
Purchased and accrued interest		374		252
Current Assets
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		50,271	[1]	47,224	[2]
Available-for-sale securities, unrealized gains		2		8
Available-for-sale securities, unrealized losses		(71)		(41)
Available-for-sale marketable securities, fair value		50,202	[1]	47,191	[2]
Current Assets | Corporate Bonds
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		32,844	[1]	31,753	[2]
Available-for-sale securities, unrealized gains		1		0
Available-for-sale securities, unrealized losses		(60)		(39)
Available-for-sale marketable securities, fair value		32,785	[1]	31,714	[2]
Current Assets | Commercial Paper
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		7,990	[1]	7,986	[2]
Available-for-sale securities, unrealized gains		0		0
Available-for-sale securities, unrealized losses		(6)		(1)
Available-for-sale marketable securities, fair value		7,984	[1]	7,985	[2]
Current Assets | Certificates of Deposit
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		6,257	[1]	6,253	[2]
Available-for-sale securities, unrealized gains		1		8
Available-for-sale securities, unrealized losses		0		0
Available-for-sale marketable securities, fair value		6,258	[1]	6,261	[2]
Current Assets | Government municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		3,180	[1]	1,232	[2]
Available-for-sale securities, unrealized gains		0		0
Available-for-sale securities, unrealized losses		(5)		(1)
Available-for-sale marketable securities, fair value		3,175		1,231
Non-current Assets
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		11,577	[1]	13,645	[2]
Available-for-sale securities, unrealized gains		0		2
Available-for-sale securities, unrealized losses		(53)		(21)
Available-for-sale marketable securities, fair value		11,524	[1]	13,626	[2]
Non-current Assets | Corporate Bonds
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		4,051	[1]	4,138	[2]
Available-for-sale securities, unrealized gains		0		0
Available-for-sale securities, unrealized losses		(29)		(12)
Available-for-sale marketable securities, fair value		4,022	[1]	4,126	[2]
Non-current Assets | Certificates of Deposit
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		7,526	[1]	7,511	[2]
Available-for-sale securities, unrealized gains		0		2
Available-for-sale securities, unrealized losses		(24)		(6)
Available-for-sale marketable securities, fair value		$ 7,502	[1]	7,507	[2]
Non-current Assets | Government municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis	[2]			1,996
Available-for-sale securities, unrealized gains				0
Available-for-sale securities, unrealized losses				(3)
Available-for-sale marketable securities, fair value	[2]			$ 1,993
[1]	Included in amortized cost and fair value is purchased and accrued interest of $374
[2]	Included in amortized cost and fair value is purchased and accrued interest of $252.

Marketable Securities (Fair V43

Marketable Securities (Fair Value and Gross Unrealized Losses for AFS) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
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	$ 49,330	$ 47,054
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(121)	(62)
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer	5,498	499
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(3)	(1)
Corporate Bonds
Schedule of Available-for-sale Securities [Line Items]
Fair value of available-for-sale securities in continuous unrealized loss position for less than twelve months	29,496	33,664
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(88)	(52)
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer	5,000	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(1)	0
Commercial Paper
Schedule of Available-for-sale Securities [Line Items]
Fair value of available-for-sale securities in continuous unrealized loss position for less than twelve months	5,985	5,987
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(6)	(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	10,728	4,244
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(22)	(6)
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer	498	499
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(2)	(1)
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	3,121	3,159
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(5)	(3)
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

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2015		Sep. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale marketable securities	$ 61,726	[1]	$ 60,817	[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	17,550		14,436
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	61,726		60,817
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
Liability | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration on acquired business	0
Liability | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration on acquired business	0
Liability | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration on acquired business	(10,400)
Money market | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	17,550		14,436
Money market | 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 | 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	36,807		35,840
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	7,984		7,985
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	13,760		13,768
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		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	3,175		3,224
Government municipal bonds | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale marketable securities	0		0
Estimate of Fair Value Measurement | 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	79,276		75,253
Estimate of Fair Value Measurement | Liability | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration on acquired business	(10,400)
Estimate of Fair Value Measurement | Money market | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	17,550		14,436
Estimate of Fair Value Measurement | Corporate Bonds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale marketable securities	36,807		35,840
Estimate of Fair Value Measurement | Commercial Paper | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale marketable securities	7,984		7,985
Estimate of Fair Value Measurement | 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	13,760		13,768
Estimate of Fair Value Measurement | 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	$ 3,175		$ 3,224
[1]	Included in amortized cost and fair value is purchased and accrued interest of $374
[2]	Included in amortized cost and fair value is purchased and accrued interest of $252.

Goodwill and Other Identifiab45

Goodwill and Other Identifiable Intangible Assets, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 76,526	$ 73,934
Accumulated amortization	(71,465)	(71,286)
Net	5,061	2,648
Purchased and Core Technology
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	47,190	45,449
Accumulated amortization	(45,345)	(45,424)
Net	1,845	25
License Agreements
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	18	18
Accumulated amortization	(4)	(4)
Net	14	14
Patents and Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	11,491	11,377
Accumulated amortization	(10,550)	(10,385)
Net	941	992
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	17,827	17,090
Accumulated amortization	(15,566)	(15,473)
Net	$ 2,261	$ 1,617

Goodwill and Other Identifiab46

Goodwill and Other Identifiable Intangible Assets, Net (Amortization Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 468	$ 770
2016 nine months	1,160
2,017	963
2,018	574
2,019	449
2,020	215
2,021	69
Cost of Sales and General and Administrative Expense
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 400	$ 600

Goodwill and Other Identifiab47

Goodwill and Other Identifiable Intangible Assets, Net (Goodwill Rollforward) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Goodwill [Roll Forward]
Beginning balance	$ 100,183	$ 101,484
Acquisition of Bluenica Corporation	11,020	0
Foreign currency translation adjustment	(959)	(724)
Ending balance	$ 110,244	$ 100,760

Goodwill and Other Identifiab48

Goodwill and Other Identifiable Intangible Assets, Net (Additional Information) (Details) $ in Thousands	Jun. 30, 2014industry	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)
Goodwill [Line Items]
Market capitalization				$ 238,600
Carrying value		$ 285,516	$ 274,938	$ 270,600
Control premium percent	35.00%
Percent fair value in excess of carrying value of goodwill				19.00%
Target companies equity benchmark	50.00%
Number of industries encompasses similar products | industry	3
Minimum
Goodwill [Line Items]
Control premium percent	30.00%
Maximum
Goodwill [Line Items]
Control premium percent	40.00%

Income Taxes (Unrecognized Tax

Income Taxes (Unrecognized Tax Benefits) (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2015USD ($)
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, beginning balance	$ 1,618
Increases related to Prior year income tax positions	60
Decreases related to Expiration of statute of limitations	(121)
Unrecognized tax benefits, ending balance	$ 1,557

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income tax provision (benefit)	$ 381	$ (128)
Income tax expense (benefit) specific to the period	(700)	$ (500)
Unrecognized tax benefits that would impact effective tax rate	$ 1,300

Product Warranty Obligation (De

Product Warranty Obligation (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Product Warranties Disclosures [Abstract]
Warranty period, minimum	1 year
Warranty period, maximum	5 years
Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 1,014	$ 862
Warranties issued	120	291
Settlements made	(166)	(203)
Ending balance	$ 968	$ 950

Contingencies Patent infringeme

Contingencies Patent infringement (Details)	3 Months Ended
	Dec. 31, 2015
Patent Infringement
Loss Contingencies [Line Items]
Number of patents allegedly infringed	4

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Jan. 27, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Paid for Tax Withholding for Share Based Compensation	32,903
Tax withholding for share-based compensation	$ 400
Proceeds from stock option plan transactions	5,752	$ 9
Excess Tax Benefit from Share-based Compensation, Financing Activities	(190)	0
Total intrinsic value of all options exercised	$ 1,600
Forfeiture rate	10.00%
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost nonvested awards	$ 3,500
Weighted average period, unrecognized compensation cost, nonvested awards	3 years 4 months 24 days
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost nonvested restricted stock units	$ 3,100
Weighted average period, unrecognized compensation cost, nonvested awards	1 year 8 months 12 days
The 2014 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized			2,250,000
Number of shares available for future grants	1,286,089
The 2014 Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Expiration period	8 years
The Purchase Plan | The Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of continuous days of service	90 days
Number of hours per week employed	20 hours
Percent of market value	85.00%
Offering period	3 months
Employee contributions	$ 300	$ 261
Common shares issued to employees	30,564	40,950
Shares available for future issuance	586,967
Director | The 2014 Plan | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Executives and Employees | The 2014 Plan | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years

Stock-Based Compensation (Stock

Stock-Based Compensation (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 811	$ 1,082
Income tax benefit	(257)	(422)
Stock-based compensation after income taxes	554	660
Cost of Sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	54	65
Sales and Marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	199	338
Research and Development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	148	154
General and Administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 410	$ 525

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	3 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares
Options Outstanding [Roll Forward]
Options Outstanding, Beginning Balance (in shares) | shares	4,800
Options Outstanding, Granted (in shares) | shares	348
Options Outstanding, Exercised (in shares) | shares	(611)
Options Outstanding, Forfeited / Canceled (in shares) | shares	(426)
Options Outstanding, Ending Balance (in shares) | shares	4,111
Options Outstanding, Exercisable (in shares) | shares	2,935
Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price, Beginning Balance	$ 10.21
Weighted Average Exercise Price, Granted	12.63
Weighted Average Exercise Price, Exercised	9.83
Weighted Average Exercise Price, Forfeited / Canceled	11.52
Weighted Average Exercise Price, Ending Balance	10.34
Weighted Average Exercise Price, Exercisable	$ 10.49
Weighted Average Remaining Contractual Term [Abstract]
Weighted Average Remaining Contractual Term, Outstanding	4 years 10 months 24 days
Weighted Average Remaining Contractual Term, Exercisable	4 years
Aggregate Intrinsic Value [Abstract]
Aggregate Intrinsic Value, Outstanding | $	$ 6,304	[1]
Aggregate Intrinsic Value, Exercisable | $	$ 4,223	[1]
Closing Stock Price	$ 11.38
[1]	The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $11.38 as of December 31, 2015, which would have been received by the option holders had all option holders exercised their options as of that date. The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price.

Stock-Based Compensation (Fair

Stock-Based Compensation (Fair Value Assumptions) (Details) - Stock Options - $ / shares	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average per option grant date fair value	$ 4.30	$ 2.91
Assumptions Used For Options Grants [Abstract]
Risk free interest rate, minimum	1.85%	1.77%
Risk free interest rate, maximum		1.85%
Expected term	6 years	6 years
Expected volatility rate, minimum	32.00%	35.00%
Expected volatility rate, maximum		36.00%
Weighted average volatility	32.00%	35.00%
Expected dividend yield	0.00%	0.00%

Stock-Based Compensation (Non-V

Stock-Based Compensation (Non-Vested Options) (Details) - Restricted Stock Units shares in Thousands	3 Months Ended
	Dec. 31, 2015$ / sharesshares
Nonvested Number of Restricted Stock Units [Roll Forward]
Number of Restricted Stock Units, Beginning Balance | shares	543
Number of Restricted Stock Units, Granted | shares	121
Number of Restricted Stock Units, Vested | shares	(104)
Number of Restricted Stock Units, Canceled | shares	(91)
Number of Restricted Stock Units, Ending Balance | shares	469
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	$ 8.41
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Granted | $ / shares	12.63
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested | $ / shares	7.79
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Canceled | $ / shares	8.11
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance | $ / shares	$ 9.69

Common Stock Repurchase (Detail

Common Stock Repurchase (Details) $ in Millions	Oct. 28, 2014USD ($)
October 2014 Repurchase Program [Member]
Stock repurchase program, authorized amount	$ 15

Restructuring (Details)

Restructuring (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2015USD ($)employee	Dec. 31, 2014USD ($)	Sep. 30, 2015USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charge	$ 651	$ 0
Q1 2016 Restructuring
Restructuring Cost and Reserve [Line Items]
Restructuring charge	651
Restructuring Reserve	$ 651		$ 0
Number of employees eliminated | employee	10
Employee Termination Costs | Q1 2016 Restructuring
Restructuring Cost and Reserve [Line Items]
Restructuring charge	$ 480
Restructuring Reserve	480		0
Other | Q1 2016 Restructuring
Restructuring Cost and Reserve [Line Items]
Restructuring charge	171
Restructuring Reserve	$ 171		$ 0