Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2016 | Apr. 27, 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 | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 25,872,329 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | ||
Revenue: | |||||
Hardware product | $ 48,732 | $ 48,108 | $ 96,979 | $ 93,041 | |
Service | 1,430 | 2,293 | 3,442 | 4,578 | |
Total revenue | 50,162 | 50,401 | 100,421 | 97,619 | |
Cost of sales: | |||||
Cost of hardware product | 24,283 | 25,498 | 48,993 | 48,610 | |
Cost of service | 1,137 | 1,668 | 2,329 | 3,217 | |
Total cost of sales | 25,420 | 27,166 | 51,322 | 51,827 | |
Gross profit | 24,742 | 23,235 | 49,099 | 45,792 | |
Operating expenses: | |||||
Sales and marketing | 8,165 | 9,875 | 16,683 | 20,110 | |
Research and development | 7,757 | 7,280 | 15,595 | 14,363 | |
General and administrative | 5,065 | 4,349 | 9,126 | 9,124 | |
Restructuring charge | 102 | 412 | 753 | 412 | |
Total operating expenses | 21,089 | 21,916 | 42,157 | 44,009 | |
Operating income | 3,653 | 1,319 | 6,942 | 1,783 | |
Other (expense) income, net: | |||||
Interest income, net | 12 | 54 | 112 | 92 | |
Other (expense) income, net | (284) | 1,324 | (161) | 1,712 | |
Total other (expense) income, net | (272) | 1,378 | (49) | 1,804 | |
Income from continuing operations, before income taxes | 3,381 | 2,697 | 6,893 | 3,587 | |
Income tax provision | 1,155 | 1,035 | 1,536 | 907 | |
Income continuing operations | 2,226 | 1,662 | 5,357 | 2,680 | |
(Loss) income from discontinued operations, after income taxes | (89) | (216) | 3,230 | (1,573) | |
Net income | $ 2,137 | $ 1,446 | $ 8,587 | $ 1,107 | |
Basic net income (loss) per common share: | |||||
Continuing operations, basic (USD per share) | $ 0.09 | $ 0.07 | $ 0.21 | $ 0.11 | |
Discontinued operations, basic (USD per share) | 0 | (0.01) | 0.13 | (0.06) | |
Total, basic (1) (USD per share) | [1],[2] | 0.08 | 0.06 | 0.34 | 0.05 |
Diluted net income (loss) per common share | |||||
Continuing operations, diluted (USD per share) | 0.09 | 0.07 | 0.21 | 0.11 | |
Discontinued operations, diluted (USD per share) | 0 | (0.01) | 0.12 | (0.06) | |
Total, diluted (1) (USD per share) | [1],[2] | $ 0.08 | $ 0.06 | $ 0.33 | $ 0.04 |
Weighted average common shares: | |||||
Basic (shares) | 25,820 | 24,492 | 25,574 | 24,319 | |
Diluted (shares) | 25,998 | 25,273 | 26,116 | 24,816 | |
[1] | Earnings per share presented are calculated by line item and may not add due to the use of rounded amounts. | ||||
[2] | Earnings per share presented are calculated by line item and may not add due to the use of rounded amounts. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 2,137 | $ 1,446 | $ 8,587 | $ 1,107 | |
Other comprehensive income (loss), net of tax: | |||||
Foreign currency translation adjustment | 1,421 | (3,356) | (446) | (5,729) | |
Change in net unrealized gain (loss) on investments | 106 | 23 | 43 | (6) | |
Less income tax (provision) benefit | (39) | (9) | (16) | 2 | |
Reclassification of realized loss (gain) on investments included in net income (1) | [1] | 0 | 1 | (7) | 1 |
Less income tax benefit (2) | [2] | 0 | 0 | 3 | 0 |
Other comprehensive loss (income), net of tax | 1,488 | (3,341) | (423) | (5,732) | |
Comprehensive income (loss) | $ 3,625 | $ (1,895) | $ 8,164 | $ (4,625) | |
[1] | Recorded in Other income, net on our Condensed Consolidated Statements of Operations. | ||||
[2] | Recorded in Income tax provision in our Condensed Consolidated Statements of Operations. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Sep. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 67,270 | $ 45,018 |
Marketable securities | 48,114 | 47,191 |
Accounts receivable, net | 28,569 | 27,788 |
Inventories | 25,684 | 31,877 |
Deferred tax assets | 0 | 3,252 |
Receivable from sale of business | 2,967 | 0 |
Other | 4,326 | 3,435 |
Current assets of discontinued operations | 0 | 1,624 |
Total current assets | 176,930 | 160,185 |
Marketable securities, long-term | 7,292 | 13,626 |
Property, equipment and improvements, net | 13,986 | 14,339 |
Identifiable intangible assets, net | 4,795 | 2,648 |
Goodwill | 110,707 | 100,183 |
Deferred tax assets | 7,685 | 6,255 |
Receivable from sale of business | 1,939 | 0 |
Other | 215 | 250 |
Non-current assets of discontinued operations | 0 | 2,874 |
Total assets | 323,549 | 300,360 |
Current liabilities: | ||
Accounts payable | 7,280 | 6,673 |
Income taxes payable | 236 | 828 |
Accrued compensation | 6,993 | 10,156 |
Accrued warranty | 944 | 1,014 |
Contingent consideration on acquired business | 850 | 0 |
Other | 4,376 | 3,037 |
Current liabilities of discontinued operations | 0 | 1,481 |
Total current liabilities | 20,679 | 23,189 |
Income taxes payable | 1,366 | 1,546 |
Deferred tax liabilities | 690 | 135 |
Contingent consideration on acquired business | 9,672 | 0 |
Other non-current liabilities | 736 | 457 |
Non-current liabilities of discontinued operations | 0 | 95 |
Total liabilities | $ 33,143 | $ 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; 32,346,667 and 31,534,198 shares issued | 323 | 315 |
Additional paid-in capital | 234,699 | 227,367 |
Retained earnings | 132,991 | 124,404 |
Accumulated other comprehensive loss | (23,036) | (22,613) |
Treasury stock, at cost, 6,474,338 and 6,487,248 shares | (54,571) | (54,535) |
Total stockholders' equity | 290,406 | 274,938 |
Total liabilities and stockholders' equity | $ 323,549 | $ 300,360 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2016 | 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 | 32,346,667 | 31,534,198 |
Treasury stock, shares | 6,474,338 | 6,487,248 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities: | ||
Net income | $ 8,587 | $ 1,107 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, equipment and improvements | 1,405 | 1,445 |
Amortization of identifiable intangible assets | 1,001 | 1,537 |
Stock-based compensation | 1,719 | 2,222 |
Excess tax benefits from stock-based compensation | (202) | 0 |
Deferred income tax provision | 1,397 | 2,212 |
Gain on insurance settlement related to property and equipment | 0 | (989) |
Gain on sale of business | (2,870) | 0 |
Bad debt/product return provision | 168 | 518 |
Inventory obsolescence | 834 | 476 |
Restructuring charge | 753 | 518 |
Other | 182 | (27) |
Changes in operating assets and liabilities | (1,486) | (7,459) |
Net cash provided by operating activities | 11,488 | 1,560 |
Investing activities: | ||
Purchase of marketable securities | (22,056) | (22,099) |
Proceeds from maturities of marketable securities | 27,509 | 19,763 |
Proceeds from sale of business | 2,849 | 0 |
Acquisition of business, net of cash acquired | (2,860) | 0 |
Proceeds from insurance settlement related to property and equipment | 0 | 1,014 |
Proceeds from sale of property and equipment | 0 | 45 |
Purchase of property, equipment, improvements and certain other intangible assets | (1,209) | (3,035) |
Net cash provided by (used in) investing activities | 4,233 | (4,312) |
Financing activities: | ||
Excess tax benefits from stock-based compensation | 202 | 0 |
Proceeds from stock option plan transactions | 6,267 | 6,006 |
Proceeds from employee stock purchase plan transactions | 494 | 505 |
Purchases of common stock | (503) | (2,339) |
Net cash provided by financing activities | 6,460 | 4,172 |
Effect of exchange rate changes on cash and cash equivalents | 71 | (3,253) |
Net increase (decrease) in cash and cash equivalents | 22,252 | (1,833) |
Cash and cash equivalents, beginning of period | 45,018 | 47,490 |
Cash and cash equivalents, end of period | 67,270 | 45,657 |
Supplemental schedule of non-cash investing and financing activities | ||
Receivable related to sale of business | 4,906 | 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 | 6 Months Ended |
Mar. 31, 2016 | |
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 âCompany,â âDigi,â âwe,â âour,â or âusâ) pursuant to the rules and regulations of the United States Securities and Exchange Commission (the âSECâ). 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 (âU.S. GAAPâ), 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 (â2015 Financial Statementsâ). 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 Statements 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. During the first fiscal quarter ending December 31, 2015, we adopted Accounting Standards Update (âASUâ) 2015-17, âIncome Taxes (Topic 740): Balance Sheet Classification of Deferred Taxesâ 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. Contingent Consideration We measure our contingent consideration liabilities recognized in connection with business combinations at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy as defined in ASC 320 âInvestments - Debt and Equity Securitiesâ. We used a probability-weighted discounted cash flow approach as a valuation technique to determine the fair value of the contingent consideration on the acquisition date. At each subsequent reporting period, the fair value is remeasured with the change in fair value recognized in general and administrative expense and interest expense in our Condensed Consolidated Statements of Operations. Amounts, if any, paid to the seller in excess of the amount recorded on the acquisition date will be classified as cash flows used in operating activities. Payments to the seller not exceeding the acquisition-date fair value of the contingent consideration will be classified as cash flows used in financing activities. Recently Issued Accounting Pronouncements Not Yet Adopted In March 2016, the Financial Accounting Standards Board (âFASBâ) issued ASU 2016-09, âImprovements to Employee Share-Based Payment Accountingâ. This update includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. This ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2016, which for us is the first fiscal quarter ending December 31, 2017. Early adoption is permitted. We are currently evaluating the impact of the adoption of ASU 2016-09 on our consolidated financial statements. 1. BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In March 2016, FASB issued ASU 2016-08, âRevenue from Contracts with Customers (Topic 606)â. This update clarifies implementation guidance on principal-versus-agent considerations, including how an entity determines whether it is a principal or an agent for each specified good or service promised to the customer and how an entity determines the nature of each specified good or service. In addition, ASU 2016-08 updates the indicators in ASC 606-10-55-39 and revises the existing examples in ASC 606 to better illustrate the application of the principal-versus-agent guidance. This ASU is effective at the same time as those in ASU 2014-09 (as amended by ASU 2015-14), which for us is for our fiscal 2019, including interim periods within that reporting period. We are currently assessing the potential impact of adopting this ASU on our consolidated financial statements and related disclosures. In February, 2016, FASB issued ASU 2016-02, âLeases (Topic 842)â, which amends the existing guidance to require lessees to recognize lease assets and lease liabilities from operating leases on the balance sheet. This ASU is effective using the modified retrospective approach for annual periods and interim periods within those annual periods beginning after December 15, 2018, which for us is the first fiscal quarter ending December 31, 2019. Early adoption is permitted. We are currently evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements. In January 2016, FASB issued ASU 2016-01, âFinancial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.â 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 ASU are effective for fiscal years beginning 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 be recorded at 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, âIntangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) - Customerâs Accounting for Fees Paid in a Cloud Computing Arrangement.â 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, âPresentation of Financial Statements - Going Concern.â This guidance requires management to evaluate whether there is substantial doubt about a companyâs 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, âRevenue from Contracts with Customers.â 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 1. BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 beginning October 1, 2018 and are currently assessing the potential impact of adopting this ASU on our consolidated financial statements and related disclosures. |
Acquisition
Acquisition | 6 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisition | ACQUISITION Acquisition of Bluenica Corporation On October 5, 2015 we purchased all of the outstanding stock of Bluenica Corporation (âBluenicaâ), 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 included 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 the date of acquisition (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 directly related to the acquisition, including 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. Bluenicaâs operating results are included in our Condensed Consolidated Statements of Operations from October 6, 2015. The Condensed Consolidated Balance Sheet as of March 31, 2016 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 amounts for deferred tax assets and liabilities, pending the finalization of final tax returns remain subject to change. 2. ACQUISITION (CONTINUED) 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 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 because the Bluenica acquisition is not material to our consolidated results of operations or financial position, pro forma financial information is not required to be presented. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Mar. 31, 2016 | |
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. (âEtheriosâ) 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. Below is a summary of the gain on sale (in thousands): Cash received $ 4,096 Less: Employee related liabilities (1,134 ) Working capital adjustment (113 ) Net cash proceeds 2,849 Present value of receivable due on October 23, 2016 2,941 Present value of receivable due on October 23, 2017 1,922 Total fair value of consideration received 7,712 Less: Net assets of Etherios (3,383 ) Facility abandonment costs (725 ) Transaction costs, primarily professional fees (734 ) Gain on sale of discontinued operations, before income taxes $ 2,870 The terms of the sale agreement provide that West Monroe Partners LLC will pay us $3.0 million on October 23, 2016 and $2.0 million on October 23, 2017. The present value of these amounts is included within the total fair value of consideration received. These receivable amounts are unsecured and non-interest bearing. The carrying value of these receivables presented 3. DISCONTINUED OPERATIONS (CONTINUED) on our Condensed Consolidated Balance Sheet at March 31, 2016 equals their fair values, which were determined using level 3 cash flow fair value measurement techniques. Goodwill has been included in in the net assets of Etherios based on the relative fair value of Etherios 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. In the second quarter of fiscal 2016, the sublease was extended through December 31, 2017. This sublease extension decreased the facility abandonment costs by $0.1 million in the above calculation of the gain on sale of discontinued operations. 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 March 31, 2016 , the future minimum lease payments for the San Francisco lease are approximately $0.1 million . (Loss) income from discontinued operations, after tax, as presented in the Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2016 and 2015 is as follows (in thousands): Three months ended March 31, Six months ended March 31, 2016 2015 2016 2015 Service revenue $ â $ 2,750 $ 891 $ 4,255 Cost of service â 1,907 713 4,047 Gross profit â 843 178 208 Operating expenses: Sales and marketing â 424 148 981 Research and development â 499 103 978 General and administrative â 191 43 604 Restructuring â 106 â 106 Total operating expenses â 1,220 294 2,669 Loss from discontinued operations, before income taxes â (377 ) (116 ) (2,461 ) (Loss) gain on sale of discontinued operations, before income taxes (42 ) â 2,870 â Total (loss) income from discontinued operations, before income taxes (42 ) (377 ) 2,754 (2,461 ) Income tax expense (benefit) on discontinued operations 47 (161 ) (476 ) (888 ) (Loss) income from discontinued operations, after income taxes $ (89 ) $ (216 ) $ 3,230 $ (1,573 ) Income tax benefit on discontinued operations for the six months ended March 31, 2016 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. 3. DISCONTINUED OPERATIONS (CONTINUED) 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 which was entirely in the United States federal tax jurisdiction. 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): Six months ended March 31, 2016 2015 Amortization of identifiable intangible assets $ 30 $ 241 Depreciation of property, equipment and improvements $ â $ 14 Purchases of property, equipment, improvements and certain other intangible assets $ â $ (11 ) |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 31, 2016 | |
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. 4. EARNINGS PER SHARE (CONTINUED) 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 March 31, Six months ended March 31, 2016 2015 2016 2015 Numerator: Income from continuing operations $ 2,226 $ 1,662 $ 5,357 $ 2,680 (Loss) income from discontinued operations, after income taxes (89 ) (216 ) 3,230 (1,573 ) Net income $ 2,137 $ 1,446 $ 8,587 $ 1,107 Denominator: Denominator for basic net income (loss) per common share â weighted average shares outstanding 25,820 24,492 25,574 24,319 Effect of dilutive securities: Stock options and restricted stock units 178 781 542 497 Denominator for diluted net income (loss) per common share â adjusted weighted average shares 25,998 25,273 26,116 24,816 Basic net income (loss) per common share: Continuing operations $ 0.09 $ 0.07 $ 0.21 $ 0.11 Discontinued operations $ â $ (0.01 ) $ 0.13 $ (0.06 ) Net income (1) $ 0.08 $ 0.06 $ 0.34 $ 0.05 Diluted net income (loss) per common share: Continuing operations $ 0.09 $ 0.07 $ 0.21 $ 0.11 Discontinued operations $ â $ (0.01 ) $ 0.12 $ (0.06 ) Net income (1) $ 0.08 $ 0.06 $ 0.33 $ 0.04 (1) Earnings per share presented are calculated by line item and may not add due to the use of rounded amounts. For the three months ended March 31, 2016 and 2015 , there were 2,735,177 and 2,366,812 potentially dilutive shares, respectively, and for the six months ended March 31, 2016 and 2015 , there were 1,495,104 and 3,496,463 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 optionsâ exercise prices were greater than the average market price of our common shares. |
Selected Balance Sheet Data
Selected Balance Sheet Data | 6 Months Ended |
Mar. 31, 2016 | |
Selected Balance Sheet Data [Abstract] | |
SELECTED BALANCE SHEET DATA | SELECTED BALANCE SHEET DATA The following table shows selected balance sheet data (in thousands): March 31, September 30, 2015 Accounts receivable, net: Accounts receivable $ 28,932 $ 28,073 Less allowance for doubtful accounts 363 285 Accounts receivable, net $ 28,569 $ 27,788 Inventories: Raw materials $ 21,195 $ 26,037 Work in process 519 598 Finished goods 3,970 5,242 Inventories $ 25,684 $ 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 | 6 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 , 21 of our 59 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 income (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. Our balance sheet classification of available for sale securities is based on our best estimate of when we expect to liquidate such investments and, presently, is consistent with the stated maturity dates of such investments. However, we are not committed to holding these investments until their maturity and may determine to liquidate some or all of these investments earlier based on our liquidity and other needs. During the six months ended March 31, 2016 and 2015 , we received proceeds from our available-for-sale marketable securities of $27.5 million and $19.8 million , respectively. At March 31, 2016 our marketable securities were (in thousands): Amortized Cost (1) Unrealized Gains Unrealized Losses Fair Value (1) Current marketable securities: Corporate bonds $ 25,033 $ â $ (31 ) $ 25,002 Commercial paper 17,974 â (14 ) 17,960 Certificates of deposit 2,002 2 â 2,004 Government municipal bonds 3,153 â (5 ) 3,148 Current marketable securities 48,162 2 (50 ) 48,114 Non-current marketable securities: Certificates of deposit 7,260 32 â 7,292 Total marketable securities $ 55,422 $ 34 $ (50 ) $ 55,406 (1) Included in amortized cost and fair value is purchased and accrued interest of $209 . 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 $ â $ (39 ) $ 31,714 Commercial paper 7,986 â (1 ) 7,985 Certificates of deposit 6,253 8 â 6,261 Government municipal bonds 1,232 â (1 ) 1,231 Current marketable securities 47,224 8 (41 ) 47,191 Non-current marketable securities: Corporate bonds 4,138 â (12 ) 4,126 Certificates of deposit 7,511 2 (6 ) 7,507 Government municipal bonds 1,996 â (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): March 31, 2016 Less than 12 Months More than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 19,843 $ (30 ) $ 3,002 $ (1 ) Commercial paper 17,960 (14 ) â â Government municipal bonds 3,084 (5 ) â â Total $ 40,887 $ (49 ) $ 3,002 $ (1 ) September 30, 2015 Less than 12 Months More than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 33,664 $ (52 ) $ â $ â Commercial paper 5,987 (1 ) â â Certificates of deposit 4,244 (6 ) 499 (1 ) Government municipal bonds 3,159 (3 ) â â Total $ 47,054 $ (62 ) $ 499 $ (1 ) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2016 | |
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 and to financial liabilities for contingent consideration. 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 March 31, 2016 Level 1 Level 2 Level 3 Assets: Money market $ 29,578 $ 29,578 $ â $ â Corporate bonds 25,002 â 25,002 â Commercial paper 17,960 â 17,960 â Certificates of deposit 9,296 â 9,296 â Government municipal bonds 3,148 â 3,148 â Total assets measured at fair value $ 84,984 $ 29,578 $ 55,406 $ â Liabilities: Contingent consideration on acquired business 10,522 $ â $ â $ 10,522 Total liabilities measured at fair value $ 10,522 $ â $ â $ 10,522 Total carrying value at Fair Value Measurements Using Inputs Considered as September 30, 2015 Level 1 Level 2 Level 3 Assets: Money market $ 14,436 $ 14,436 $ â $ â Corporate bonds 35,840 â 35,840 â Commercial paper 7,985 â 7,985 â Certificates of deposit 13,768 â 13,768 â Government municipal bonds 3,224 â 3,224 â Total assets measured at fair value $ 75,253 $ 14,436 $ 60,817 $ â 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 six months ended March 31, 2016 . 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 or contingent consideration, currently and in 7. FAIR VALUE MEASUREMENTS (CONTINUED) the future. If market conditions deteriorate, we may incur impairment charges for securities in our investment portfolio. We may also incur changes to our contingent consideration liability as discussed below. 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 liability that is re-measured each reporting period. The following table presents a reconciliation of the liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended March 31, 2016 (in thousands): Three months ended Six months ended Fair value at beginning of period $ 10,400 $ â Purchase price contingent consideration â 10,400 Change in fair value of contingent consideration 122 122 Fair value at end of period $ 10,522 $ 10,522 The change in fair value of contingent consideration for the acquisition of Bluenica is included in general and administrative and interest expense on our Condensed Consolidated Statements of Operations and reflects our estimate of the probability of achieving the relevant targets and is discounted based on our estimated discount rate. We have estimated the fair value of the contingent consideration based on the probability of achieving the specified revenue thresholds at 93.6% to 98.1% and a discount rate between 1.2% and 2.5% , reflecting the risk profiles of satisfying these thresholds. A significant increase (decrease) in our estimates of achieving the relevant targets or a significant increase (decrease) in the discount rates used could materially increase (decrease) the fair value of the contingent consideration liability. |
Goodwill and Other Identifiable
Goodwill and Other Identifiable Intangible Assets, Net | 6 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET | GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET Amortizable identifiable intangible assets were (in thousands): March 31, 2016 September 30, 2015 Gross carrying amount Accum. amort. Net Gross carrying amount Accum. amort. Net Purchased and core technology $ 47,165 $ (45,352 ) $ 1,813 $ 45,449 $ (45,424 ) $ 25 License agreements 18 (4 ) 14 18 (4 ) 14 Patents and trademarks 11,596 (10,710 ) 886 11,377 (10,385 ) 992 Customer relationships 17,817 (15,735 ) 2,082 17,090 (15,473 ) 1,617 Total $ 76,596 $ (71,801 ) $ 4,795 $ 73,934 $ (71,286 ) $ 2,648 Amortization expense was $0.5 million and $0.6 million for the three month periods ended March 31, 2016 and 2015 , respectively. Amortization expense was $1.0 million and $1.3 million for the six month periods ended March 31, 2016 and 2015 , respectively. Amortization expense is recorded on our consolidated statements of operations within cost of sales and in general and administrative expense. 8. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET (CONTINUED) Estimated amortization expense related to identifiable intangible assets for the remainder of fiscal 2016 and the five succeeding fiscal years is (in thousands): 2016 (six months) $ 988 2017 1,547 2018 1,110 2019 698 2020 328 2021 50 The changes in the carrying amount of goodwill are (in thousands): Six months ended 2016 2015 Beginning balance, October 1 $ 100,183 $ 101,484 Acquisition of Bluenica 11,020 â Foreign currency translation adjustment (496 ) (1,656 ) Ending balance, March 31 $ 110,707 $ 99,828 Goodwill is tested for impairment on an annual basis as of June 30, or more frequently if events or circumstances occur which could indicate impairment. The calculation of goodwill impairment requires us to make assumptions about the fair value of our one reporting unit, which historically has been approximated by using our market capitalization plus a control premium. Control premium assumptions require judgment and actual results may differ from assumed or estimated amounts. Our test for potential goodwill impairment is a two-step approach. We estimate the fair value for our one reporting unit by comparing its fair value (market capitalization plus control premium) to our carrying value. If the carrying value of the reporting unit exceeds its estimated fair value, the second step of the goodwill impairment analysis requires us to measure the amount of the impairment loss. An impairment loss is calculated by comparing the implied fair value of the goodwill to its carrying amount. To calculate the implied fair value of goodwill, the fair value of the reporting unitâs 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 unitâs 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 companyâs 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 8. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET (CONTINUED) 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 | 6 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax provision for continuing operations was $1.5 million for the six months ended March 31, 2016 . Net tax benefits specific to the six months ended March 31, 2016 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 six months ended March 31, 2016 , 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 certain tax credits in the U.S. Income tax provision for continuing operations was $0.9 million for the six months ended March 31, 2015 . 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 six months ended March 31, 2015 , 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 jurisdictions, an adjustment for certain foreign income taxed 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 first quarter of fiscal 2016, 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 March 31, 2016 $ 1,557 The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate is $1.5 million , after considering the impact of interest and deferred benefit items. We expect the change in the total amount of unrecognized tax benefits will be insignificant over the next 12 months. |
Product Warranty Obligation
Product Warranty Obligation | 6 Months Ended |
Mar. 31, 2016 | |
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 January 1 issued made March 31 Three months ended March 31, 2016 $ 968 $ 172 $ (196 ) $ 944 Three months ended March 31, 2015 $ 950 $ 206 $ (233 ) $ 923 Balance at Warranties Settlements Balance at Period October 1 issued made March 31 Six months ended March 31, 2016 $ 1,014 $ 292 $ (362 ) $ 944 Six months ended March 31, 2015 $ 862 $ 497 $ (436 ) $ 923 We are not responsible for, and do not warrant that, custom software versions, created by original equipment manufacturer (OEM) customers based upon our software source code, will function in a particular way, will conform to any specifications or are fit for any particular purpose. Further, we do not indemnify these customers from any third-party liability as it relates to or arises from any customization or modifications made by the OEM customer. |
Contingencies
Contingencies | 6 Months Ended |
Mar. 31, 2016 | |
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. On April 27. 2016, we settled a patent infringement claim. The settlement fully resolves the claim by JSDQ Mesh Technologies LLC with no future payment obligations. 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 | 6 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-based awards were granted under the 2016 Omnibus Incentive Plan (the â2016 Planâ) beginning February 1, 2016 and prior to that were granted under the 2014 Omnibus Incentive Plan (the â2014 Planâ). Stock-based awards were granted under the 2014 Plan during the six months ended March 31, 2015 . Upon stockholder approval of the 2016 Plan, we ceased granting awards under any prior plan. The authority to grant options under the 2016 Plan and to set other terms and conditions rests with the Compensation Committee of the Board of Directors. The 2016 Plan authorizes the issuance of up to 1,500,000 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 2016 Plan typically vest over a four -year period and will expire if unexercised after seven years from the date of grant. Restricted stock unit awards (RSUs) that have been granted to directors typically vest in one year. RSUs that have been granted to executives and employees typically vest in November over a four -year period. Awards may be granted under the 2016 Plan until January 31, 2026. Options under the 2016 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. 12. STOCK-BASED COMPENSATION (CONTINUED) The 2014 Plan, under which grants ceased upon approval of the 2016 Plan, authorized 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 included 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 would expire if unexercised after eight years from the date of grant. RSUs that have been granted to directors typically vest in one year. RSUs that have been granted to executives and employees typically vested in November over a four -year period. Options under the 2014 Plan could be granted as either ISOs or NSOs. The exercise price of options and the grant date price of restricted stock was 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 issued 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 six months ended March 31, 2016 , our employees forfeited 42,427 shares in order to satisfy $0.5 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 March 31, 2016 , there were approximately 1,342,807 shares available for future grants under the 2016 Plan. Cash received from the exercise of stock options was $6.3 million during the six months ended March 31, 2016 and $6.0 million during the six months ended March 31, 2015 . There were $0.2 million in excess tax benefits from stock-based compensation for the six months ended March 31, 2016 . There were no excess tax benefits from stock-based compensation during the six months ended March 31, 2015 . 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 $0.5 million during both the six month periods ended March 31, 2016 and 2015 . Pursuant to the Purchase Plan, 55,343 and 72,306 common shares were issued to employees during the six months ended March 31, 2016 and 2015 , respectively. Shares are issued under the Purchase Plan from treasury stock. As of March 31, 2016 , 562,188 common shares were available for future issuances under the Purchase Plan. Stock-based compensation expense is included in the consolidated results of operations as follows (in thousands): Three months ended March 31, Six months ended March 31, 2016 2015 2016 2015 Cost of sales $ 51 $ 83 $ 105 $ 189 Sales and marketing 227 306 426 649 Research and development 147 196 295 388 General and administrative 478 453 888 996 Stock-based compensation before income taxes 903 1,038 1,714 2,222 Income tax benefit (293 ) (361 ) (550 ) (775 ) Stock-based compensation after income taxes $ 610 $ 677 $ 1,164 $ 1,447 Stock-based compensation cost capitalized as part of inventory was immaterial as of March 31, 2016 and September 30, 2015 . 12. STOCK-BASED COMPENSATION (CONTINUED) 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 505 11.51 Exercised (667 ) 9.78 Forfeited / Canceled (589 ) 11.09 Balance at March 31, 2016 4,049 $10.32 4.9 $ 1,700 Exercisable at March 31, 2016 2,809 $10.50 4.1 $ 981 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $9.43 as of March 31, 2016 , 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 six months ended March 31, 2016 was $1.7 million and during the six months ended March 31, 2015 was $0.8 million . The table below shows the weighted average fair value, which was determined based upon the fair value of each option on the grant date utilizing the Black-Scholes option-pricing model and the related assumptions: Six months ended March 31, 2016 2015 Weighted average per option grant date fair value $3.92 $2.91 Assumptions used for option grants: Risk free interest rate 1.61% - 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 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 six months ended March 31, 2016 was 10.0% . As of March 31, 2016 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. 12. STOCK-BASED COMPENSATION (CONTINUED) A summary of our non-vested restricted stock units as of March 31, 2016 and changes during the six 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 233 $ 10.92 Vested (165 ) $ 8.36 Canceled (99 ) $ 8.09 Nonvested at March 31, 2016 512 $ 9.64 As of March 31, 2016 , the total unrecognized compensation cost related to non-vested restricted stock units was $3.6 million and the related weighted average period over which it is expected to be recognized is approximately 1.7 years. |
Restructuring
Restructuring | 6 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING Below is a summary of the restructuring charges and other activity within the restructuring accrual (in thousands): Q2 2016 Restructuring Q1 2016 Restructuring Employee Employee Other Total Balance at September 30, 2015 $ â $ â $ â $ â Restructuring charge â 480 171 651 Balance at December 31, 2015 â 480 171 651 Restructuring charge 78 â 24 102 Payments (76 ) (113 ) (195 ) (384 ) Foreign currency fluctuation â 13 â 13 Balance at March 31, 2016 $ 2 $ 380 $ â $ 382 Q1 2016 Restructuring In November 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. Q2 2016 Restructuring In January 2016, we approved a restructuring plan impacting our wireless design services group. This restructuring resulted in an elimination of 5 positions. We recorded a restructuring charge of $0.1 million related to severance during the second quarter of fiscal 2016 and paid the majority of the severance during that same quarter. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 6 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENT On April 27, 2016 we settled a patent infringement claim with JSDQ Mesh Technologies LLC. For more detail see Note 11 to our Condensed Consolidated Financial Statements. On April 26, 2016, our Board of Directors authorized a new program to repurchase up to $15.0 million of our common stock primarily to return capital to shareholders. This new repurchase authorization expires on May 1, 2017. Shares repurchased under the new program may be made through open market and privately negotiated transactions from time to time and in amounts that management deems appropriate. The amount and timing of share repurchases will depend upon market conditions and other corporate considerations. |
Basis of Presentation of Unau21
Basis of Presentation of Unaudited Interim Condensed Consolidated Financial Statements and Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Contingent Consideration | Contingent Consideration We measure our contingent consideration liabilities recognized in connection with business combinations at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy as defined in ASC 320 âInvestments - Debt and Equity Securitiesâ. We used a probability-weighted discounted cash flow approach as a valuation technique to determine the fair value of the contingent consideration on the acquisition date. At each subsequent reporting period, the fair value is remeasured with the change in fair value recognized in general and administrative expense and interest expense in our Condensed Consolidated Statements of Operations. Amounts, if any, paid to the seller in excess of the amount recorded on the acquisition date will be classified as cash flows used in operating activities. Payments to the seller not exceeding the acquisition-date fair value of the contingent consideration will be classified as cash flows used in financing activities. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Not Yet Adopted In March 2016, the Financial Accounting Standards Board (âFASBâ) issued ASU 2016-09, âImprovements to Employee Share-Based Payment Accountingâ. This update includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. This ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2016, which for us is the first fiscal quarter ending December 31, 2017. Early adoption is permitted. We are currently evaluating the impact of the adoption of ASU 2016-09 on our consolidated financial statements. 1. BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In March 2016, FASB issued ASU 2016-08, âRevenue from Contracts with Customers (Topic 606)â. This update clarifies implementation guidance on principal-versus-agent considerations, including how an entity determines whether it is a principal or an agent for each specified good or service promised to the customer and how an entity determines the nature of each specified good or service. In addition, ASU 2016-08 updates the indicators in ASC 606-10-55-39 and revises the existing examples in ASC 606 to better illustrate the application of the principal-versus-agent guidance. This ASU is effective at the same time as those in ASU 2014-09 (as amended by ASU 2015-14), which for us is for our fiscal 2019, including interim periods within that reporting period. We are currently assessing the potential impact of adopting this ASU on our consolidated financial statements and related disclosures. In February, 2016, FASB issued ASU 2016-02, âLeases (Topic 842)â, which amends the existing guidance to require lessees to recognize lease assets and lease liabilities from operating leases on the balance sheet. This ASU is effective using the modified retrospective approach for annual periods and interim periods within those annual periods beginning after December 15, 2018, which for us is the first fiscal quarter ending December 31, 2019. Early adoption is permitted. We are currently evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements. In January 2016, FASB issued ASU 2016-01, âFinancial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.â 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 ASU are effective for fiscal years beginning 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 be recorded at 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, âIntangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) - Customerâs Accounting for Fees Paid in a Cloud Computing Arrangement.â 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, âPresentation of Financial Statements - Going Concern.â This guidance requires management to evaluate whether there is substantial doubt about a companyâs 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, âRevenue from Contracts with Customers.â 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 1. BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 beginning October 1, 2018 and are currently assessing the potential impact of adopting this ASU on our consolidated financial statements and related disclosures. |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
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) | 6 Months Ended |
Mar. 31, 2016 | |
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 which was entirely in the United States federal tax jurisdiction. (Loss) income from discontinued operations, after tax, as presented in the Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2016 and 2015 is as follows (in thousands): Three months ended March 31, Six months ended March 31, 2016 2015 2016 2015 Service revenue $ â $ 2,750 $ 891 $ 4,255 Cost of service â 1,907 713 4,047 Gross profit â 843 178 208 Operating expenses: Sales and marketing â 424 148 981 Research and development â 499 103 978 General and administrative â 191 43 604 Restructuring â 106 â 106 Total operating expenses â 1,220 294 2,669 Loss from discontinued operations, before income taxes â (377 ) (116 ) (2,461 ) (Loss) gain on sale of discontinued operations, before income taxes (42 ) â 2,870 â Total (loss) income from discontinued operations, before income taxes (42 ) (377 ) 2,754 (2,461 ) Income tax expense (benefit) on discontinued operations 47 (161 ) (476 ) (888 ) (Loss) income from discontinued operations, after income taxes $ (89 ) $ (216 ) $ 3,230 $ (1,573 ) 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): Six months ended March 31, 2016 2015 Amortization of identifiable intangible assets $ 30 $ 241 Depreciation of property, equipment and improvements $ â $ 14 Purchases of property, equipment, improvements and certain other intangible assets $ â $ (11 ) Below is a summary of the gain on sale (in thousands): Cash received $ 4,096 Less: Employee related liabilities (1,134 ) Working capital adjustment (113 ) Net cash proceeds 2,849 Present value of receivable due on October 23, 2016 2,941 Present value of receivable due on October 23, 2017 1,922 Total fair value of consideration received 7,712 Less: Net assets of Etherios (3,383 ) Facility abandonment costs (725 ) Transaction costs, primarily professional fees (734 ) Gain on sale of discontinued operations, before income taxes $ 2,870 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
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 March 31, Six months ended March 31, 2016 2015 2016 2015 Numerator: Income from continuing operations $ 2,226 $ 1,662 $ 5,357 $ 2,680 (Loss) income from discontinued operations, after income taxes (89 ) (216 ) 3,230 (1,573 ) Net income $ 2,137 $ 1,446 $ 8,587 $ 1,107 Denominator: Denominator for basic net income (loss) per common share â weighted average shares outstanding 25,820 24,492 25,574 24,319 Effect of dilutive securities: Stock options and restricted stock units 178 781 542 497 Denominator for diluted net income (loss) per common share â adjusted weighted average shares 25,998 25,273 26,116 24,816 Basic net income (loss) per common share: Continuing operations $ 0.09 $ 0.07 $ 0.21 $ 0.11 Discontinued operations $ â $ (0.01 ) $ 0.13 $ (0.06 ) Net income (1) $ 0.08 $ 0.06 $ 0.34 $ 0.05 Diluted net income (loss) per common share: Continuing operations $ 0.09 $ 0.07 $ 0.21 $ 0.11 Discontinued operations $ â $ (0.01 ) $ 0.12 $ (0.06 ) Net income (1) $ 0.08 $ 0.06 $ 0.33 $ 0.04 (1) Earnings per share presented are calculated by line item and may not add due to the use of rounded amounts. |
Selected Balance Sheet Data (Ta
Selected Balance Sheet Data (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Selected Balance Sheet Data [Abstract] | |
Schedule of Selected Balance Sheet Data | The following table shows selected balance sheet data (in thousands): March 31, September 30, 2015 Accounts receivable, net: Accounts receivable $ 28,932 $ 28,073 Less allowance for doubtful accounts 363 285 Accounts receivable, net $ 28,569 $ 27,788 Inventories: Raw materials $ 21,195 $ 26,037 Work in process 519 598 Finished goods 3,970 5,242 Inventories $ 25,684 $ 31,877 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Marketable Securities [Abstract] | |
Schedule of Marketable Securities | At March 31, 2016 our marketable securities were (in thousands): Amortized Cost (1) Unrealized Gains Unrealized Losses Fair Value (1) Current marketable securities: Corporate bonds $ 25,033 $ â $ (31 ) $ 25,002 Commercial paper 17,974 â (14 ) 17,960 Certificates of deposit 2,002 2 â 2,004 Government municipal bonds 3,153 â (5 ) 3,148 Current marketable securities 48,162 2 (50 ) 48,114 Non-current marketable securities: Certificates of deposit 7,260 32 â 7,292 Total marketable securities $ 55,422 $ 34 $ (50 ) $ 55,406 (1) Included in amortized cost and fair value is purchased and accrued interest of $209 . 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 $ â $ (39 ) $ 31,714 Commercial paper 7,986 â (1 ) 7,985 Certificates of deposit 6,253 8 â 6,261 Government municipal bonds 1,232 â (1 ) 1,231 Current marketable securities 47,224 8 (41 ) 47,191 Non-current marketable securities: Corporate bonds 4,138 â (12 ) 4,126 Certificates of deposit 7,511 2 (6 ) 7,507 Government municipal bonds 1,996 â (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): March 31, 2016 Less than 12 Months More than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 19,843 $ (30 ) $ 3,002 $ (1 ) Commercial paper 17,960 (14 ) â â Government municipal bonds 3,084 (5 ) â â Total $ 40,887 $ (49 ) $ 3,002 $ (1 ) September 30, 2015 Less than 12 Months More than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 33,664 $ (52 ) $ â $ â Commercial paper 5,987 (1 ) â â Certificates of deposit 4,244 (6 ) 499 (1 ) Government municipal bonds 3,159 (3 ) â â Total $ 47,054 $ (62 ) $ 499 $ (1 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 Level 1 Level 2 Level 3 Assets: Money market $ 29,578 $ 29,578 $ â $ â Corporate bonds 25,002 â 25,002 â Commercial paper 17,960 â 17,960 â Certificates of deposit 9,296 â 9,296 â Government municipal bonds 3,148 â 3,148 â Total assets measured at fair value $ 84,984 $ 29,578 $ 55,406 $ â Liabilities: Contingent consideration on acquired business 10,522 $ â $ â $ 10,522 Total liabilities measured at fair value $ 10,522 $ â $ â $ 10,522 Total carrying value at Fair Value Measurements Using Inputs Considered as September 30, 2015 Level 1 Level 2 Level 3 Assets: Money market $ 14,436 $ 14,436 $ â $ â Corporate bonds 35,840 â 35,840 â Commercial paper 7,985 â 7,985 â Certificates of deposit 13,768 â 13,768 â Government municipal bonds 3,224 â 3,224 â Total assets measured at fair value $ 75,253 $ 14,436 $ 60,817 $ â |
Fair Value of Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents a reconciliation of the liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended March 31, 2016 (in thousands): Three months ended Six months ended Fair value at beginning of period $ 10,400 $ â Purchase price contingent consideration â 10,400 Change in fair value of contingent consideration 122 122 Fair value at end of period $ 10,522 $ 10,522 |
Goodwill and Other Identifiab28
Goodwill and Other Identifiable Intangible Assets, Net (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Amortizable Identifiable Intangible Assets | Amortizable identifiable intangible assets were (in thousands): March 31, 2016 September 30, 2015 Gross carrying amount Accum. amort. Net Gross carrying amount Accum. amort. Net Purchased and core technology $ 47,165 $ (45,352 ) $ 1,813 $ 45,449 $ (45,424 ) $ 25 License agreements 18 (4 ) 14 18 (4 ) 14 Patents and trademarks 11,596 (10,710 ) 886 11,377 (10,385 ) 992 Customer relationships 17,817 (15,735 ) 2,082 17,090 (15,473 ) 1,617 Total $ 76,596 $ (71,801 ) $ 4,795 $ 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 (six months) $ 988 2017 1,547 2018 1,110 2019 698 2020 328 2021 50 |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill are (in thousands): Six months ended 2016 2015 Beginning balance, October 1 $ 100,183 $ 101,484 Acquisition of Bluenica 11,020 â Foreign currency translation adjustment (496 ) (1,656 ) Ending balance, March 31 $ 110,707 $ 99,828 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 $ 1,557 |
Product Warranty Obligation (Ta
Product Warranty Obligation (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
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 January 1 issued made March 31 Three months ended March 31, 2016 $ 968 $ 172 $ (196 ) $ 944 Three months ended March 31, 2015 $ 950 $ 206 $ (233 ) $ 923 Balance at Warranties Settlements Balance at Period October 1 issued made March 31 Six months ended March 31, 2016 $ 1,014 $ 292 $ (362 ) $ 944 Six months ended March 31, 2015 $ 862 $ 497 $ (436 ) $ 923 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
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 March 31, Six months ended March 31, 2016 2015 2016 2015 Cost of sales $ 51 $ 83 $ 105 $ 189 Sales and marketing 227 306 426 649 Research and development 147 196 295 388 General and administrative 478 453 888 996 Stock-based compensation before income taxes 903 1,038 1,714 2,222 Income tax benefit (293 ) (361 ) (550 ) (775 ) Stock-based compensation after income taxes $ 610 $ 677 $ 1,164 $ 1,447 |
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 505 11.51 Exercised (667 ) 9.78 Forfeited / Canceled (589 ) 11.09 Balance at March 31, 2016 4,049 $10.32 4.9 $ 1,700 Exercisable at March 31, 2016 2,809 $10.50 4.1 $ 981 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $9.43 as of March 31, 2016 , 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: Six months ended March 31, 2016 2015 Weighted average per option grant date fair value $3.92 $2.91 Assumptions used for option grants: Risk free interest rate 1.61% - 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 March 31, 2016 and changes during the six 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 233 $ 10.92 Vested (165 ) $ 8.36 Canceled (99 ) $ 8.09 Nonvested at March 31, 2016 512 $ 9.64 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
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): Q2 2016 Restructuring Q1 2016 Restructuring Employee Employee Other Total Balance at September 30, 2015 $ â $ â $ â $ â Restructuring charge â 480 171 651 Balance at December 31, 2015 â 480 171 651 Restructuring charge 78 â 24 102 Payments (76 ) (113 ) (195 ) (384 ) Foreign currency fluctuation â 13 â 13 Balance at March 31, 2016 $ 2 $ 380 $ â $ 382 |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Thousands | Oct. 05, 2015 | Mar. 31, 2016 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 110,707 | $ 100,183 | $ 99,828 | $ 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 | ||||
Weighted average use life of acquired intangibles | 5 years 7 months 13 days | ||||
Purchased and Core Technology | Bluenica Corporation | |||||
Business Acquisition [Line Items] | |||||
Useful life of finite lived intangibles | 5 years | ||||
Customer Relationships | Bluenica Corporation | |||||
Business Acquisition [Line Items] | |||||
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 |
Acquisition (Assets Acquired an
Acquisition (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Oct. 05, 2015 | Mar. 31, 2016 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 110,707 | $ 100,183 | $ 99,828 | $ 101,484 | |
Bluenica Corporation | |||||
Business Acquisition [Line Items] | |||||
Cash paid at closing | $ 2,888 | ||||
Purchase price payable upon completion of diligence matters | 115 | ||||
Fair value of contingent consideration | 10,400 | ||||
Total purchase price consideration | 13,403 | ||||
Fair value of net tangible assets acquired | 129 | ||||
Goodwill | 11,020 | ||||
Deferred tax liabilities, net | (646) | ||||
Total assets acquired and liabilities assumed | 13,403 | ||||
Purchased and Core Technology | Bluenica Corporation | |||||
Business Acquisition [Line Items] | |||||
Fair value of identifiable intangible assets acquired | 2,000 | ||||
Customer Relationships | Bluenica Corporation | |||||
Business Acquisition [Line Items] | |||||
Fair value of identifiable intangible assets acquired | $ 900 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | Oct. 23, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Oct. 23, 2017 | Oct. 23, 2016 | Sep. 30, 2015 |
San Francisco | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Future minimum lease payments | $ 100 | $ 100 | ||||||
Etherios, Inc. | Discontinued Operations, Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Facility abandonment costs | $ 725 | 100 | ||||||
Income tax expense (benefit) on discontinued operations | $ 47 | $ (161) | $ (476) | $ (888) | ||||
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 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net cash proceeds | $ 2,849 | $ 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 | $ 4,096 | ||||
Employee related liabilities | (1,134) | ||||
Working capital adjustment | (113) | ||||
Net cash proceeds | 2,849 | ||||
Present value of receivable due on October 23, 2016 | 2,941 | ||||
Present value of receivable due on October 23, 2017 | 1,922 | ||||
Total fair value of consideration received | 7,712 | ||||
Less: | |||||
Net assets of Etherios | (3,383) | ||||
Facility abandonment costs | (725) | $ (100) | |||
Transaction costs, primarily professional fees | (734) | ||||
Gain on sale of discontinued operations, before income taxes | $ 2,870 | $ (42) | $ 0 | $ 2,870 | $ 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 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Service revenue | $ 0 | $ 2,750 | $ 891 | $ 4,255 | |
Cost of service | 0 | 1,907 | 713 | 4,047 | |
Gross profit | 0 | 843 | 178 | 208 | |
Operating expenses: | |||||
Sales and marketing | 0 | 424 | 148 | 981 | |
Research and development | 0 | 499 | 103 | 978 | |
General and administrative | 0 | 191 | 43 | 604 | |
Restructuring | 0 | 106 | 0 | 106 | |
Total operating expenses | 0 | 1,220 | 294 | 2,669 | |
Loss from discontinued operations, before income taxes | 0 | (377) | (116) | (2,461) | |
(Loss) gain on sale of discontinued operations, before income taxes | $ 2,870 | (42) | 0 | 2,870 | 0 |
Total (loss) income from discontinued operations, before income taxes | (42) | (377) | 2,754 | (2,461) | |
Income tax expense (benefit) on discontinued operations | 47 | (161) | (476) | (888) | |
(Loss) income from discontinued operations, after income taxes | $ (89) | $ (216) | $ 3,230 | $ (1,573) |
Discontinued Operations (Assets
Discontinued Operations (Assets and Liabilities of Discontinued Ops) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | 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 $589 thousand related to Etherios which was entirely in the United States federal tax jurisdiction. |
Discontinued Operations (Amorti
Discontinued Operations (Amortization, Depreciation, and Purchase of PPE) (Details) - Etherios, Inc. - Discontinued Operations, Disposed of by Sale - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Amortization of identifiable intangible assets | $ 30 | $ 241 |
Depreciation of property, equipment and improvements | 0 | 14 |
Purchases of property, equipment, improvements and certain other intangible assets | $ 0 | $ (11) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | ||
Numerator: | |||||
Income continuing operations | $ 2,226 | $ 1,662 | $ 5,357 | $ 2,680 | |
(Loss) income from discontinued operations, after income taxes | (89) | (216) | 3,230 | (1,573) | |
Net income | $ 2,137 | $ 1,446 | $ 8,587 | $ 1,107 | |
Denominator: | |||||
Denominator for basic net income (loss) per common share â weighted average shares outstanding | 25,820,000 | 24,492,000 | 25,574,000 | 24,319,000 | |
Effect of dilutive securities: | |||||
Stock options and restricted stock units | 178,000 | 781,000 | 542,000 | 497,000 | |
Denominator for diluted net income (loss) per common share â adjusted weighted average shares | 25,998,000 | 25,273,000 | 26,116,000 | 24,816,000 | |
Basic net income (loss) per common share: | |||||
Continuing operations, basic (USD per share) | $ 0.09 | $ 0.07 | $ 0.21 | $ 0.11 | |
Discontinued operations, basic (USD per share) | 0 | (0.01) | 0.13 | (0.06) | |
Net income, basic (1) (USD per share) | [1],[2] | 0.08 | 0.06 | 0.34 | 0.05 |
Diluted net income (loss) per common share | |||||
Continuing operations, diluted (USD per share) | 0.09 | 0.07 | 0.21 | 0.11 | |
Discontinued operations, diluted (USD per share) | 0 | (0.01) | 0.12 | (0.06) | |
Net income, diluted (1) (USD per share) | [1],[2] | $ 0.08 | $ 0.06 | $ 0.33 | $ 0.04 |
Potentially dilutive securities excluded from computation of earnings per share | 2,735,177 | 2,366,812 | 1,495,104 | 3,496,463 | |
[1] | Earnings per share presented are calculated by line item and may not add due to the use of rounded amounts. | ||||
[2] | Earnings per share presented are calculated by line item and may not add due to the use of rounded amounts. |
Selected Balance Sheet Data (De
Selected Balance Sheet Data (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Sep. 30, 2015 |
Accounts receivable, net: | ||
Accounts receivable | $ 28,932 | $ 28,073 |
Less allowance for doubtful accounts | 363 | 285 |
Accounts receivable, net | 28,569 | 27,788 |
Inventories: | ||
Raw materials | 21,195 | 26,037 |
Work in process | 519 | 598 |
Finished goods | 3,970 | 5,242 |
Inventories | $ 25,684 | $ 31,877 |
Marketable Securities (Details)
Marketable Securities (Details) $ in Thousands | 6 Months Ended | |
Mar. 31, 2016USD ($)Security | Mar. 31, 2015USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities below amortized cost basis | 21 | |
Number of securities | 59 | |
Proceeds from maturities of marketable securities | $ | $ 27,509 | $ 19,763 |
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 | Mar. 31, 2016 | Sep. 30, 2015 | |||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities, amortized cost basis | $ 55,422 | [1] | $ 60,869 | [2] | |
Available-for-sale securities, unrealized gains | 34 | 10 | |||
Available-for-sale securities, unrealized losses | (50) | (62) | |||
Available-for-sale marketable securities, fair value | 55,406 | [1] | 60,817 | [2] | |
Purchased and accrued interest | 209 | 252 | |||
Current Assets | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities, amortized cost basis | 48,162 | [1] | 47,224 | [2] | |
Available-for-sale securities, unrealized gains | 2 | 8 | |||
Available-for-sale securities, unrealized losses | (50) | (41) | |||
Available-for-sale marketable securities, fair value | 48,114 | [1] | 47,191 | [2] | |
Current Assets | Corporate Bonds | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities, amortized cost basis | 25,033 | [1] | 31,753 | [2] | |
Available-for-sale securities, unrealized gains | 0 | 0 | |||
Available-for-sale securities, unrealized losses | (31) | (39) | |||
Available-for-sale marketable securities, fair value | 25,002 | [1] | 31,714 | [2] | |
Current Assets | Commercial Paper | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities, amortized cost basis | 17,974 | [1] | 7,986 | [2] | |
Available-for-sale securities, unrealized gains | 0 | 0 | |||
Available-for-sale securities, unrealized losses | (14) | (1) | |||
Available-for-sale marketable securities, fair value | 17,960 | [1] | 7,985 | [2] | |
Current Assets | Certificates of Deposit | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities, amortized cost basis | 2,002 | [1] | 6,253 | [2] | |
Available-for-sale securities, unrealized gains | 2 | 8 | |||
Available-for-sale securities, unrealized losses | 0 | 0 | |||
Available-for-sale marketable securities, fair value | 2,004 | [1] | 6,261 | [2] | |
Current Assets | Government municipal bonds | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities, amortized cost basis | 3,153 | [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 | 3,148 | 1,231 | |||
Non-current Assets | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities, amortized cost basis | [2] | 13,645 | |||
Available-for-sale securities, unrealized gains | 2 | ||||
Available-for-sale securities, unrealized losses | (21) | ||||
Available-for-sale marketable securities, fair value | [2] | 13,626 | |||
Non-current Assets | Corporate Bonds | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities, amortized cost basis | [2] | 4,138 | |||
Available-for-sale securities, unrealized gains | 0 | ||||
Available-for-sale securities, unrealized losses | (12) | ||||
Available-for-sale marketable securities, fair value | [2] | 4,126 | |||
Non-current Assets | Certificates of Deposit | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities, amortized cost basis | 7,260 | [1] | 7,511 | [2] | |
Available-for-sale securities, unrealized gains | 32 | 2 | |||
Available-for-sale securities, unrealized losses | 0 | (6) | |||
Available-for-sale marketable securities, fair value | $ 7,292 | [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 $209 | ||||
[2] | Included in amortized cost and fair value is purchased and accrued interest of $252. |
Marketable Securities (Fair V44
Marketable Securities (Fair Value and Gross Unrealized Losses for AFS) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | 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 | $ 40,887 | $ 47,054 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (49) | (62) |
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 3,002 | 499 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1) | (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 | 19,843 | 33,664 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (30) | (52) |
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 3,002 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1) | 0 |
Commercial Paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value of available-for-sale securities in continuous unrealized loss position for less than twelve months | 17,960 | 5,987 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (14) | (1) |
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Certificates of Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value of available-for-sale securities in continuous unrealized loss position for less than twelve months | 4,244 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (6) | |
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 499 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (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 | 3,084 | 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 (Financ
Fair Value Measurements (Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Sep. 30, 2015 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale marketable securities | $ 55,406 | [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 assets measured at fair value | 29,578 | 14,436 | ||
Total liabilities measured at fair value | 0 | |||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value | 55,406 | 60,817 | ||
Total liabilities measured at fair value | 0 | |||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value | 0 | 0 | ||
Total liabilities measured at fair value | 10,522 | |||
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 | 10,522 | |||
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 | 29,578 | 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 | 25,002 | 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 | 17,960 | 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 | 9,296 | 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 | 3,148 | 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 assets measured at fair value | 84,984 | 75,253 | ||
Total liabilities measured at fair value | 10,522 | |||
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 | 29,578 | 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 | 25,002 | 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 | 17,960 | 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 | 9,296 | 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 | $ 3,148 | $ 3,224 | ||
[1] | Included in amortized cost and fair value is purchased and accrued interest of $209 | |||
[2] | Included in amortized cost and fair value is purchased and accrued interest of $252. |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2016 | Mar. 31, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of period | $ 10,400 | $ 0 |
Purchase price contingent consideration | 0 | 10,400 |
Change in fair value of contingent consideration | 122 | 122 |
Fair value at end of period | $ 10,522 | $ 10,522 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Inputs, Level 3 | 6 Months Ended |
Mar. 31, 2016 | |
Minimum | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |
Fair value inputs probability of payment | 93.60% |
Fair Value Inputs, Discount Rate | 1.20% |
Maximum | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |
Fair value inputs probability of payment | 98.10% |
Fair Value Inputs, Discount Rate | 2.50% |
Goodwill and Other Identifiab48
Goodwill and Other Identifiable Intangible Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Sep. 30, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 76,596 | $ 73,934 |
Accumulated amortization | (71,801) | (71,286) |
Net | 4,795 | 2,648 |
Purchased and Core Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 47,165 | 45,449 |
Accumulated amortization | (45,352) | (45,424) |
Net | 1,813 | 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 | 11,596 | 11,377 |
Accumulated amortization | (10,710) | (10,385) |
Net | 886 | 992 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 17,817 | 17,090 |
Accumulated amortization | (15,735) | (15,473) |
Net | $ 2,082 | $ 1,617 |
Goodwill and Other Identifiab49
Goodwill and Other Identifiable Intangible Assets, Net (Amortization Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 1,001 | $ 1,537 | ||
2016 six months | $ 988 | 988 | ||
2,017 | 1,547 | 1,547 | ||
2,018 | 1,110 | 1,110 | ||
2,019 | 698 | 698 | ||
2,020 | 328 | 328 | ||
2,021 | 50 | 50 | ||
Cost of Sales and General and Administrative Expense | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 500 | $ 600 | $ 1,000 | $ 1,300 |
Goodwill and Other Identifiab50
Goodwill and Other Identifiable Intangible Assets, Net (Goodwill Rollforward) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 100,183 | $ 101,484 |
Acquisition of Bluenica | 11,020 | 0 |
Foreign currency translation adjustment | (496) | (1,656) |
Ending balance | $ 110,707 | $ 99,828 |
Goodwill and Other Identifiab51
Goodwill and Other Identifiable Intangible Assets, Net (Additional Information) (Details) $ in Thousands | Jun. 30, 2014industry | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) |
Goodwill [Line Items] | ||||
Market capitalization | $ 238,600 | |||
Carrying value | $ 290,406 | $ 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 | 6 Months Ended |
Mar. 31, 2016USD ($) | |
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 | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 1,155 | $ 1,035 | $ 1,536 | $ 907 |
Income tax expense (benefit) specific to the period | (700) | $ (500) | ||
Unrecognized tax benefits that would impact effective tax rate | $ 1,500 | $ 1,500 |
Product Warranty Obligation (De
Product Warranty Obligation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Product Warranties Disclosures [Abstract] | ||||
Warranty period, minimum | 1 year | |||
Warranty period, maximum | 5 years | |||
Standard Product Warranty Accrual [Roll Forward] | ||||
Beginning balance | $ 968 | $ 950 | $ 1,014 | $ 862 |
Warranties issued | 172 | 206 | 292 | 497 |
Settlements made | (196) | (233) | (362) | (436) |
Ending balance | $ 944 | $ 923 | $ 944 | $ 923 |
Contingencies Patent infringeme
Contingencies Patent infringement (Details) | Dec. 23, 2015 |
Patent Infringement | |
Loss Contingencies [Line Items] | |
Number of patents allegedly infringed | 4 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Feb. 01, 2016 | Jan. 27, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Paid for Tax Withholding for Share Based Compensation | 42,427 | |||
Tax withholding for share-based compensation | $ 500 | |||
Proceeds from stock option plan transactions | 6,267 | $ 6,006 | ||
Excess tax benefits from stock-based compensation | 202 | 0 | ||
Total intrinsic value of all options exercised | $ 1,700 | 800 | ||
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 | $ 3,600 | |||
Weighted average period, unrecognized compensation cost, nonvested awards | 1 year 8 months 12 days | |||
The 2016 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 1,500,000 | |||
Number of shares available for future grants | 1,342,807 | |||
The 2016 Plan | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Expiration period | 7 years | |||
The 2014 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 2,250,000 | |||
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 | $ 500 | $ 505 | ||
Common shares issued to employees | 55,343 | 72,306 | ||
Shares available for future issuance | 562,188 | |||
Director | The 2016 Plan | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
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 2016 Plan | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
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 | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation before income taxes | $ 903 | $ 1,038 | $ 1,714 | $ 2,222 |
Income tax benefit | (293) | (361) | (550) | (775) |
Stock-based compensation after income taxes | 610 | 677 | 1,164 | 1,447 |
Cost of Sales | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation before income taxes | 51 | 83 | 105 | 189 |
Sales and Marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation before income taxes | 227 | 306 | 426 | 649 |
Research and Development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation before income taxes | 147 | 196 | 295 | 388 |
General and Administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation before income taxes | $ 478 | $ 453 | $ 888 | $ 996 |
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 | 6 Months Ended | |
Mar. 31, 2016USD ($)$ / sharesshares | ||
Options Outstanding [Roll Forward] | ||
Options Outstanding, Beginning Balance (in shares) | shares | 4,800 | |
Options Outstanding, Granted (in shares) | shares | 505 | |
Options Outstanding, Exercised (in shares) | shares | (667) | |
Options Outstanding, Forfeited / Canceled (in shares) | shares | (589) | |
Options Outstanding, Ending Balance (in shares) | shares | 4,049 | |
Options Outstanding, Exercisable (in shares) | shares | 2,809 | |
Weighted Average Exercise Price [Roll Forward] | ||
Weighted Average Exercise Price, Beginning Balance | $ 10.21 | |
Weighted Average Exercise Price, Granted | 11.51 | |
Weighted Average Exercise Price, Exercised | 9.78 | |
Weighted Average Exercise Price, Forfeited / Canceled | 11.09 | |
Weighted Average Exercise Price, Ending Balance | 10.32 | |
Weighted Average Exercise Price, Exercisable | $ 10.50 | |
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 1 month 6 days | |
Aggregate Intrinsic Value [Abstract] | ||
Aggregate Intrinsic Value, Outstanding | $ | $ 1,700 | [1] |
Aggregate Intrinsic Value, Exercisable | $ | $ 981 | [1] |
Closing Stock Price | $ 9.43 | |
[1] | The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $9.43 as of March 31, 2016, 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 | 6 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average per option grant date fair value | $ 3.92 | $ 2.91 |
Assumptions Used For Options Grants [Abstract] | ||
Risk free interest rate, minimum | 1.61% | 1.77% |
Risk free interest rate, maximum | 1.85% | 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 | 6 Months Ended |
Mar. 31, 2016$ / 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 | 233 |
Number of Restricted Stock Units, Vested | shares | (165) |
Number of Restricted Stock Units, Canceled | shares | (99) |
Number of Restricted Stock Units, Ending Balance | shares | 512 |
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 | 10.92 |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested | $ / shares | 8.36 |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Canceled | $ / shares | 8.09 |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance | $ / shares | $ 9.64 |
Restructuring (Details)
Restructuring (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2016USD ($)employee | Mar. 31, 2015USD ($) | Sep. 30, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | $ 382 | $ 651 | $ 382 | $ 0 | ||
Restructuring charge | 102 | 651 | $ 412 | $ 753 | $ 412 | |
Payments for Restructuring | (384) | |||||
Restructuring Reserve, Translation Adjustment | 13 | |||||
Q1 2016 Restructuring | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of employees eliminated | employee | 10 | |||||
Q2 2016 Restructuring | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of employees eliminated | employee | 5 | |||||
Employee Termination Costs | Q1 2016 Restructuring | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | 380 | 480 | $ 380 | 0 | ||
Restructuring charge | 0 | 480 | ||||
Payments for Restructuring | (113) | |||||
Restructuring Reserve, Translation Adjustment | 13 | |||||
Employee Termination Costs | Q2 2016 Restructuring | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | 2 | 0 | 2 | 0 | ||
Restructuring charge | 78 | 0 | ||||
Payments for Restructuring | (76) | |||||
Restructuring Reserve, Translation Adjustment | 0 | |||||
Other | Q1 2016 Restructuring | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | 0 | 171 | $ 0 | $ 0 | ||
Restructuring charge | 24 | $ 171 | ||||
Payments for Restructuring | (195) | |||||
Restructuring Reserve, Translation Adjustment | $ 0 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | Apr. 26, 2016USD ($) |
Common Stock | Subsequent Event | |
Subsequent Event [Line Items] | |
Authorized amount under share repurchase program | $ 15 |