Digi International (DGII) 10-Q 31 Jan 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2016	Jan. 25, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	DIGI INTERNATIONAL INC.
Entity Central Index Key	854,775
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		26,430,854

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Revenue:
Hardware product	$ 43,173	$ 48,247
Service	2,002	2,012
Total revenue	45,175	50,259
Cost of sales:
Cost of hardware product	22,438	24,710
Cost of service	1,284	1,192
Total cost of sales	23,722	25,902
Gross profit	21,453	24,357
Operating expenses:
Sales and marketing	8,322	8,518
Research and development	6,905	7,838
General and administrative	3,804	4,061
Restructuring charge	0	651
Total operating expenses	19,031	21,068
Operating income	2,422	3,289
Other income, net:
Interest income	159	108
Interest expense	(33)	(8)
Other income, net	574	123
Total other income, net	700	223
Income from continuing operations, before income taxes	3,122	3,512
Income tax provision	765	381
Income continuing operations	2,357	3,131
Income from discontinued operations, after income taxes	0	3,319
Net income	$ 2,357	$ 6,450
Basic net income per common share:
Continuing operations, basic (USD per share)	$ 0.09	$ 0.12
Discontinued operations, basic (USD per share)	0	0.13
Net income, basic (USD per share)	0.09	0.25
Diluted net income per common share
Continuing operations, diluted (USD per share)	0.09	0.12
Discontinued operations, diluted (USD per share)	0	0.13
Net income, diluted (USD per share)	$ 0.09	$ 0.25
Weighted average common shares:
Basic (shares)	26,175	25,331
Diluted (shares)	26,972	26,171

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands		3 Months Ended
		Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income		$ 2,357	$ 6,450
Other comprehensive loss, net of tax:
Foreign currency translation adjustment		(3,755)	(1,867)
Change in net unrealized loss on investments		(24)	(63)
Less income tax benefit		9	23
Reclassification of realized gain on investments included in net income (1)	[1]	0	(7)
Less income tax benefit (2)	[2]	0	3
Other comprehensive loss, net of tax		(3,770)	(1,911)
Comprehensive (loss) income		$ (1,413)	$ 4,539
[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	Dec. 31, 2016	Sep. 30, 2016
Current assets:
Cash and cash equivalents	$ 81,142	$ 75,727
Marketable securities	51,939	58,382
Accounts receivable, net	28,005	28,685
Inventories	24,338	26,276
Receivable from sale of business	1,968	2,997
Other	4,623	3,578
Total current assets	192,015	195,645
Marketable securities, long-term	3,275	3,541
Property, equipment and improvements, net	13,983	14,041
Identifiable intangible assets, net	4,299	4,041
Goodwill	111,116	109,448
Deferred tax assets	6,644	7,295
Receivable from sale of business	0	1,959
Other	147	196
Total assets	331,479	336,166
Current liabilities:
Accounts payable	7,924	8,569
Income taxes payable	163	167
Accrued compensation	3,968	10,787
Accrued warranty	1,025	1,033
Contingent consideration on acquired business	1,841	513
Other	2,861	2,739
Total current liabilities	17,782	23,808
Income taxes payable	1,367	1,490
Deferred tax liabilities	575	616
Contingent consideration on acquired businesses	8,819	9,447
Other non-current liabilities	828	776
Total liabilities	29,371	36,137
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; 32,826,739 and 32,471,175 shares issued	328	325
Additional paid-in capital	241,115	237,492
Retained earnings	143,469	141,112
Accumulated other comprehensive loss	(28,461)	(24,691)
Treasury stock, at cost, 6,429,147 and 6,430,797 shares	(54,343)	(54,209)
Total stockholders' equity	302,108	300,029
Total liabilities and stockholders' equity	$ 331,479	$ 336,166

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Dec. 31, 2016	Sep. 30, 2016
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	32,826,739	32,471,175
Treasury stock, shares	6,429,147	6,430,797

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Operating activities:
Net income	$ 2,357	$ 6,450
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation of property, equipment and improvements	656	724
Amortization of identifiable intangible assets	345	468
Stock-based compensation	1,173	816
Excess tax benefits from stock-based compensation	(183)	(190)
Deferred income tax provision	619	1,300
Gain on sale of business	0	(2,912)
Change in fair value of contingent consideration	(82)	0
Bad debt/product return provision	264	168
Inventory obsolescence	450	409
Restructuring charges	0	651
Other	(12)	40
Changes in operating assets and liabilities	(7,622)	(4,369)
Net cash (used in) provided by operating activities	(2,035)	3,555
Investing activities:
Purchase of marketable securities	(25,470)	(8,079)
Proceeds from maturities of marketable securities	32,155	7,106
Proceeds from sale of Etherios	3,000	2,866
Acquisition of business, net of cash acquired	(1,690)	(2,860)
Purchase of property, equipment, improvements and certain other identifiable intangible assets	(554)	(545)
Net cash provided by (used in) investing activities	7,441	(1,512)
Financing activities:
Acquisition earn-out payments	(518)	0
Excess tax benefits from stock-based compensation	183	190
Proceeds from stock option plan transactions	2,787	5,752
Proceeds from employee stock purchase plan transactions	297	301
Purchases of common stock	(390)	(403)
Net cash provided by financing activities	2,359	5,840
Effect of exchange rate changes on cash and cash equivalents	(2,350)	(711)
Net increase in cash and cash equivalents	5,415	7,172
Cash and cash equivalents, beginning of period	75,727	45,018
Cash and cash equivalents, end of period	81,142	52,190
Supplemental schedule of non-cash investing and financing activities
Receivable related to sale of Etherios	0	5,015
Liability related to acquisition of business	(1,300)	(10,550)
Accrual for purchase of property, equipment, improvements and certain other identifiable intangible assets	$ (105)	$ 0

Basis of Presentation of Unaudi

Basis of Presentation of Unaudited Interim Condensed Consolidated Financial Statements and Significant Accounting Policies	3 Months Ended
	Dec. 31, 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 “Company,” “Digi,” “we,” “our,” or “us”) pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures, normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto, including (but not limited to) the summary of significant accounting policies, presented in our Annual Report on Form 10-K for the year ended September 30, 2016, as filed with the SEC (“2016 Financial Statements”). The condensed consolidated financial statements presented herein reflect, in the opinion of management, all adjustments which consist only of normal, recurring adjustments necessary for a fair presentation of the condensed consolidated balance sheets and condensed consolidated statements of operations, comprehensive (loss) income 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 2016 Financial Statements, but do not include all disclosures required by U.S. GAAP. Recently Issued Accounting Pronouncements Adopted In April 2015, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-05, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” The new standard provides guidance to customers about whether a cloud computing arrangement includes a software license. If the arrangement does include a software license, the software license element of the arrangement should be accounted for in the same manner as the acquisition of other software licenses. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early adoption permitted. We adopted this guidance beginning with our fiscal quarter ending December 31, 2016. The adoption of this standard did not have a material impact on our consolidated financial statements. Not Yet Adopted In August 2016, FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments.” The amendments in this update provide guidance on eight specific cash flow issues, thereby reducing the diversity in practice in how certain transaction are classified in the statement of cash flows. This ASU is effective for annual periods and interim periods for those annual periods beginning after December 15, 2017, which for us is the first quarter ended December 31, 2018. Early adoption is permitted. We are currently evaluating the impact of the adoption of ASU 2016-15 on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses. This ASU is effective for annual periods and interim periods for those annual periods beginning after December 15, 2019, which for us is the first quarter ended December 31, 2020. Entities may early adopt beginning after December 15, 2018. We are currently evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements. In March 2016, FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” 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 will adopt ASU 2016-09 beginning October 1, 2017. We are currently evaluating the impact of the adoption of ASU 2016-09 1. BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) on our consolidated financial statements. Prospectively, beginning October 1, 2017, excess tax benefits and tax deficiencies will be reflected as income tax benefit or expense in our Consolidated Statement of Operations and could result in a material impact. The extent of the excess tax benefits or tax deficiencies are subject to variation in our stock price and the timing of RSU vestings and employee stock option exercises. In February, 2016, FASB issued ASU 2016-02, “Leases (Topic 842)”, 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, “Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 will require equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income. The amendments in this update will also simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, eliminate the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet and require these entities to use the exit price notion when measuring fair value of financial instruments for disclosure purposes. This ASU would also change the presentation and disclosure requirements for financial instruments. In addition, this ASU clarifies the guidance related to valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The amendments in this 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 August 2014, FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern.” This guidance requires management to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. These amendments are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter, which for us, will be our annual period ended September 30, 2017. Early adoption is permitted. While we are evaluating the impact of the adoption of ASU 2014-15, we do not expect it to have an impact on our consolidated financial statements. In May 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This guidance provides a five-step analysis in determining when and how revenue is recognized so that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods and services. It also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14 “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” which approved a one-year deferral of the effective date of ASU 2014-09. As a result of this deferral, ASU 2014-09 is effective for our fiscal 2019, including interim periods within that reporting period. The FASB also agreed to allow us to choose to adopt the standard effective for our fiscal 2018. In addition, the FASB issued ASU 2016-08, ASU 2016-10 and ASU 2016-12 in March 2016, April 2016 and May 2016, respectively, to provide interpretive clarifications on the new guidance in ASC Topic 606. We are currently working through an adoption plan and have identified our revenue streams and completed a preliminary analysis of how we currently account for revenue transactions compared to the revenue accounting required under the new standard. We intend to complete our adoption plan in fiscal 2017. This plan includes a review of transactions supporting each revenue stream to determine the impact of 1. BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) accounting treatment under ASC 606, evaluation of the method of adoption, and completing a rollout plan for implementation of the new standard with affected functions in our organization. Because of the nature of the work that remains, at this time we are unable to reasonably estimate the impact of adoption on our consolidated financial statements. We plan to adopt the new guidance beginning October 1, 2018.

Acquisition

Acquisition	3 Months Ended
	Dec. 31, 2016
Business Combinations [Abstract]
Acquisition	ACQUISITION Acquisition of FreshTemp, LLC On November 1, 2016, we purchased all of the outstanding interests of FreshTemp, LLC (“FreshTemp”), a Pittsburgh-based provider of temperature monitoring and task management solutions for the food industry. We believe this is a complementary acquisition for us as the acquired technology will continue to be supported to create an advanced portfolio of products for the Digi Cold Chain Solution's market. The terms of the acquisition included an upfront cash payment together with future earn-out payments and a holdback amount. Cash of $1.7 million was paid at time of closing. The earn-out payments are based on revenue related to certain customer contracts entered into by June 30, 2017. The final calculation date will be on June 30, 2018. The cumulative amount of these earn-out payments will not exceed $2.3 million . The fair value of this contingent consideration was $1.3 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 $0.1 million have been charged directly to operations and are included in general and administrative expense in our Condensed Consolidated Statements of Operations for the first quarter of fiscal 2017. 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 $2.7 million of goodwill, all of which is expected to be deductible for tax purposes. 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. Operating results for FreshTemp are included in our Condensed Consolidated Statements of Operations from November 1, 2016. The Condensed Consolidated Balance Sheet as of December 31, 2016 reflects the preliminary allocation of the purchase price to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The identifiable intangibles values and net working capital values are preliminary and we expect to finalize them in the second fiscal quarter of 2017. The FreshTemp 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 purchase agreement be recognized at fair value as of the acquisition date. The following table summarizes the preliminary values of FreshTemp assets acquired and liabilities assumed as of the acquisition date (in thousands): Cash $ 1,690 Purchase price payable upon completion of diligence matters 310 Fair value of contingent consideration on acquired business 1,300 Total purchase price consideration $ 3,300 Fair value of net tangible assets acquired $ (37 ) Fair value of identifiable intangible assets acquired: Purchased and core technology 350 Customer relationships 250 Goodwill 2,737 Total $ 3,300 2. ACQUISITION (CONTINUED) The weighted average useful life for all the identifiable intangibles listed above is 5.8 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 a useful lives 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. Since the acquisition of FreshTemp occurred close to the beginning of our fiscal 2017, the proforma amounts would not be materially different from actual amounts. Revenue for the first quarter of fiscal 2017 related to the FreshTemp acquisition was immaterial. As our operating costs related to the FreshTemp acquisition are now integrated, operating income and related earnings per share for FreshTemp are not determinable for fiscal 2017. Proforma information for fiscal 2016 was not materially different from actual amounts. Acquisition of Bluenica Corporation On October 5, 2015 we purchased all of the outstanding stock of Bluenica Corporation (“Bluenica”), a company focused on temperature monitoring of perishable goods in the food industry by using wireless sensors which are installed in grocery and convenience stores, restaurants, and in products during shipment and storage to ensure that quality, freshness and public health requirements are met. This acquisition formed 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. 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. Operating results for Bluenica, now known as Digi Cold Chain Solutions, are included in our Condensed Consolidated Statements of Operations from October 6, 2015. The Condensed Consolidated Balance Sheet as of December 31, 2016 reflects the final allocation of the purchase price to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition.

Discontinued Operations

Discontinued Operations	3 Months Ended
	Dec. 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. (“Etherios”) to West Monroe Partners, LLC. We sold Etherios as part of a strategy to focus on providing highly reliable machine connectivity solutions for business and mission-critical application environments. Etherios was included in our single operating segment. The terms of the sale agreement provided that West Monroe Partners, LLC would pay us $3.0 million on October 23, 2016 and $2.0 million on October 23, 2017. The present value of these amounts was included within the total fair value of consideration received. These receivable amounts are unsecured and non-interest bearing. We received $3.0 million in October 2016. The carrying value of the remaining receivable of $2.0 million presented on our Condensed Consolidated Balance Sheet at December 31, 2016 approximates its fair value, which was determined using Level 3 cash flow fair value measurement techniques. Goodwill was included in the net assets of Etherios based on the relative fair value of Etherios compared to the fair value of the Company, as the Company consists of a single reporting unit for goodwill impairment testing purposes. 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 December 31, 2017. Also in connection with the sale, we assigned our San Francisco lease to West Monroe Partners, LLC. 3. DISCONTINUED OPERATIONS (CONTINUED) Income from discontinued operations, after income taxes, as presented in the Condensed Consolidated Statements of Operations for the three months ended December 31, 2015 is as follows (in thousands): Three months ended December 31, 2015 Service revenue $ 891 Cost of service 713 Gross profit 178 Operating expenses: Sales and marketing 148 Research and development 103 General and administrative 43 Total operating expenses 294 Loss from discontinued operations, before income taxes (116 ) Gain on sale of discontinued operations, before income taxes 2,912 Total income from discontinued operations, before income taxes 2,796 Income tax benefit on discontinued operations (523 ) Income from discontinued operations, after income taxes $ 3,319 Income tax benefit on discontinued operations for the three months ended December 31, 2015, was $0.5 million and primarily represented 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, this transaction resulted 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 was recorded in the third quarter of fiscal 2016 upon completion of the capital loss calculation. The following table presents amortization, depreciation and purchases of property, equipment, improvements and certain other identifiable intangible assets of the discontinued operations related to Etherios (in thousands): Three months ended December 31, 2015 Amortization of identifiable intangible assets $ 30 Depreciation of property, equipment and improvements $ — Purchases of property, equipment, improvements and certain other identifiable intangible assets $ —

Earnings Per Share

Earnings Per Share	3 Months Ended
	Dec. 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. The following table is a reconciliation of the numerators and denominators in the net income per common share calculations (in thousands, except per common share data): Three months ended December 31, 2016 2015 Numerator: Income from continuing operations $ 2,357 $ 3,131 Income from discontinued operations, after income taxes — 3,319 Net income $ 2,357 $ 6,450 Denominator: Denominator for basic net income per common share — weighted average shares outstanding 26,175 25,331 Effect of dilutive securities: Stock options and restricted stock units 797 840 Denominator for diluted net income per common share — adjusted weighted average shares 26,972 26,171 Basic net income per common share: Continuing operations $ 0.09 $ 0.12 Discontinued operations $ — $ 0.13 Net income $ 0.09 $ 0.25 Diluted net income per common share: Continuing operations $ 0.09 $ 0.12 Discontinued operations $ — $ 0.13 Net income $ 0.09 $ 0.25 For the three months ended December 31, 2016 and 2015 , there were 1,108,900 and 902,084 potentially dilutive shares, respectively, related to stock options to purchase common shares that were not included in the above computation of diluted earnings per common share. This is because the options’ exercise prices were greater than the average market price of our common shares.

Selected Balance Sheet Data

Selected Balance Sheet Data	3 Months Ended
	Dec. 31, 2016
Selected Balance Sheet Data [Abstract]
SELECTED BALANCE SHEET DATA	SELECTED BALANCE SHEET DATA The following table shows selected balance sheet data (in thousands): December 31, September 30, 2016 Accounts receivable, net: Accounts receivable $ 30,464 $ 30,885 Less allowance for doubtful accounts 204 209 Less reserve for future returns and pricing adjustments 2,255 1,991 Accounts receivable, net $ 28,005 $ 28,685 Inventories: Raw materials $ 19,264 $ 21,116 Work in process 741 802 Finished goods 4,333 4,358 Inventories $ 24,338 $ 26,276 Inventories are stated at the lower of cost or market value, with cost determined using the first-in, first-out method.

Marketable Securities

Marketable Securities	3 Months Ended
	Dec. 31, 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 December 31, 2016 , 18 of our 47 securities that we held were trading below our amortized cost basis. We determined each decline in value to be temporary based upon the above described factors. We expect to realize the fair value of these securities, plus accrued interest, either at the time of maturity or when the security is sold. All of our current holdings are classified as available-for-sale marketable securities and are recorded at fair value on our consolidated balance sheet with the unrealized gains and losses recorded in accumulated other comprehensive (loss) income. All of our current marketable securities will mature in less than one year and our non-current marketable securities will mature in less than two 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 three months ended December 31, 2016 and 2015 , we received proceeds from our available-for-sale marketable securities of $32.2 million and $7.1 million , respectively. At December 31, 2016 our marketable securities were (in thousands): Amortized Cost (1) Unrealized Gains Unrealized Losses Fair Value (1) Current marketable securities: Corporate bonds $ 33,979 $ — $ (50 ) $ 33,929 Commercial paper 13,990 — (2 ) 13,988 Certificates of deposit 4,015 7 — 4,022 Current marketable securities 51,984 7 (52 ) 51,939 Non-current marketable securities: Certificates of deposit 3,260 15 — 3,275 Total marketable securities $ 55,244 $ 22 $ (52 ) $ 55,214 (1) Included in amortized cost and fair value is purchased and accrued interest of $282 . At September 30, 2016 our marketable securities were (in thousands): Amortized Cost (1) Unrealized Gains Unrealized Losses Fair Value (1) Current marketable securities: Corporate bonds $ 28,801 $ — $ (34 ) $ 28,767 Commercial paper 23,963 — (20 ) 23,943 Certificates of deposit 3,755 13 — 3,768 Government municipal bonds 1,904 — — 1,904 Current marketable securities 58,423 13 (54 ) 58,382 Non-current marketable securities: Certificates of deposit 3,505 36 — 3,541 Total marketable securities $ 61,928 $ 49 $ (54 ) $ 61,923 (1) Included in amortized cost and fair value is purchased and accrued interest of $271 . 6. MARKETABLE SECURITIES (CONTINUED) The following tables show the fair values and gross unrealized losses of our available-for-sale marketable securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category (in thousands): December 31, 2016 Less than 12 Months More than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 31,917 $ (49 ) $ 2,012 $ (1 ) Commercial paper 13,988 (2 ) — — Total $ 45,905 $ (51 ) $ 2,012 $ (1 ) September 30, 2016 Less than 12 Months More than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 24,454 $ (33 ) $ 4,102 $ (1 ) Commercial paper 23,943 (20 ) — — Total $ 48,397 $ (53 ) $ 4,102 $ (1 )

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 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 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. 7. FAIR VALUE MEASUREMENTS (CONTINUED) The following tables provide information by level for financial assets and liabilities that are measured at fair value on a recurring basis (in thousands): Total carrying value at Fair Value Measurements Using Inputs Considered as December 31, 2016 Level 1 Level 2 Level 3 Assets: Money market $ 44,633 $ 44,633 $ — $ — Corporate bonds 33,929 — 33,929 — Commercial paper 13,988 — 13,988 — Certificates of deposit 7,297 — 7,297 — Total assets measured at fair value $ 99,847 $ 44,633 $ 55,214 $ — Liabilities: Contingent consideration on acquired business 10,660 $ — $ — $ 10,660 Total liabilities measured at fair value $ 10,660 $ — $ — $ 10,660 Total carrying value at Fair Value Measurements Using Inputs Considered as September 30, 2016 Level 1 Level 2 Level 3 Assets: Money market $ 44,319 $ 44,319 $ — $ — Corporate bonds 28,767 — 28,767 — Commercial paper 23,943 — 23,943 — Certificates of deposit 7,309 — 7,309 — Government municipal bonds 1,904 — 1,904 — Total assets measured at fair value $ 106,242 $ 44,319 $ 61,923 $ — Liabilities: Contingent consideration on acquired business $ 9,960 $ — $ — $ 9,960 Total liabilities measured at fair value $ 9,960 $ — $ — $ 9,960 Our money market funds, which have been determined to be cash equivalents, are measured at fair value using quoted market prices in active markets for identical assets and are therefore classified as Level 1 assets. We value our Level 2 assets using inputs that are based on market indices of similar assets within an active market. There were no transfers into or out of our Level 2 financial assets during the three months ended December 31, 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 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. As discussed in Note 2, we are required to make contingent payments for our acquisitions. In connection with the Bluenica acquisition, 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 . In connection with the FreshTemp acquistion, we are required to make a contingent payment after June 30, 2018, for revenue related to specific customer contracts signed by June 30, 2017. The fair value of the liability recognized upon acquisition was $1.3 million . The fair values of both of these contingent payments 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 as a charge or credit to general and administrative expense within the Condensed Consolidated Statements of Operations. 7. FAIR VALUE MEASUREMENTS (CONTINUED) 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 months ended December 31, 2016 and 2015 (in thousands): Three months ended December 31, 2016 2015 Fair value at October 1 $ 9,960 $ — Purchase price contingent consideration 1,300 10,400 Contingent consideration payments (518 ) — Change in fair value of contingent consideration (82 ) — Fair value at December 31 $ 10,660 $ 10,400 The change in fair value of contingent consideration for the acquisition of Bluenica and FreshTemp is included in general and administrative expense 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 75.8% to 98.0% for Bluenica and between 25% and 100% for FreshTemp. A significant increase (decrease) in our estimates of achieving the relevant targets could materially increase (decrease) the fair value of the contingent consideration liability.

Goodwill and Other Identifiable

Goodwill and Other Identifiable Intangible Assets, Net	3 Months Ended
	Dec. 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): December 31, 2016 September 30, 2016 Gross carrying amount Accum. amort. Net Gross carrying amount Accum. amort. Net Purchased and core technology $ 46,558 $ (44,756 ) $ 1,802 $ 46,594 $ (44,999 ) $ 1,595 License agreements 18 (12 ) 6 18 (10 ) 8 Patents and trademarks 11,537 (10,846 ) 691 11,619 (10,871 ) 748 Customer relationships 17,432 (15,632 ) 1,800 17,463 (15,773 ) 1,690 Total $ 75,545 $ (71,246 ) $ 4,299 $ 75,694 $ (71,653 ) $ 4,041 Amortization expense was $0.3 million and $0.4 million for the three month periods ended December 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. Estimated amortization expense related to identifiable intangible assets for the remainder of fiscal 2017 and the five succeeding fiscal years is (in thousands): 2017 (nine months) $ 1,131 2018 1,321 2019 958 2020 401 2021 232 2022 163 The changes in the carrying amount of goodwill are (in thousands): Three months ended 2016 2015 Beginning balance, October 1 $ 109,448 $ 100,183 Acquisitions 2,737 11,020 Foreign currency translation adjustment (1,069 ) (959 ) Ending balance, December 31 $ 111,116 $ 110,244 8. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET (CONTINUED) 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. There were no triggering events during the first quarter of fiscal 2017. Our test for potential goodwill impairment is a two-step approach. We estimate the fair value for our one reporting unit by comparing its fair value (market capitalization plus control premium) to our carrying value. If the carrying value of the reporting unit exceeds its estimated fair value, the second step of the goodwill impairment analysis requires us to measure the amount of the impairment loss. An impairment loss is calculated by comparing the implied fair value of the goodwill to its carrying amount. To calculate the implied fair value of goodwill, the fair value of the reporting unit’s assets and liabilities, excluding goodwill, is estimated. The excess of the fair value of the reporting unit over the amount assigned to its assets and liabilities, excluding goodwill, is the implied fair value of the reporting unit’s goodwill. At June 30, 2016 , our market capitalization was $278.6 million compared to our carrying value of $294.9 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 27% . We concluded that no impairment was indicated and we were not required to complete the second step of the goodwill impairment analysis. No goodwill impairment charges were recorded. In June 2014, we performed a control premium study to determine the appropriate control premium to include in the calculation of fair value. We used a third party valuation firm to assist us in performing this control premium analysis. In order to estimate the range of control premiums appropriate for us, the following three methodologies were used: (1) analysis of individual transactions within our industry; (2) analysis of industry-wide data, and (3) analysis of global transaction data. Individual transactions in the Communication Equipment or Technology Hardware, Storage and Peripherals industries were used to find transactions of target companies that operated in similar markets and shared similar operating characteristics with us. Transaction screening criteria included selection of transactions with the following characteristics: • At least 50 percent of a target company’s equity sought by an acquirer, • Target company considered operating (not in bankruptcy), • Target company had publicly traded stock outstanding at the transaction date, and • Transactions announced between June 30, 2009 and the valuation date. In analyzing industry-wide data, transactions in the following three industries were identified that encompassed the products offered by us: Office Equipment and Computer Hardware, Communications, and Computer, Supplies and Services. Finally, control premiums were considered for both domestic and international transactions. The control premium analysis resulted in a range of control premium of 30 percent to 40 percent . We reviewed the data and concluded that a 35 percent control premium best represented the amount an investor would likely pay, over and above market capitalization, in order to obtain a controlling interest given the economic conditions at that time. During the third quarter of fiscal 2016, we reviewed recent control premium data for transactions that occurred during fiscal 2016 in the industries previously described. The data indicated that our current control premium of 35 percent continued to be indicative of the amount that an investor would pay to obtain a controlling interest based on current macroeconomic and industry data. If our stock price or control premium declines, the first step of our goodwill impairment analysis may fail. We have identified factors that could result in additional interim goodwill impairment testing. For example, we would perform the second step of the impairment testing if our stock price fell below certain thresholds for a significant period of time, or if our control premium significantly decreased. Events or circumstances may occur that could negatively impact our stock price, including changes in our anticipated revenues and profits and our ability to execute on our strategies. In addition, our control premium could decline due to changes in economic conditions in the technology industry or more generally in the financial markets. An impairment could have a material effect on our consolidated balance sheet and results of operations. We have had no goodwill impairment losses since the adoption of Accounting Standards Codification (“ASC”) 350, Intangibles-Goodwill and Others, in fiscal 2003.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Income tax provision for continuing operations was $0.8 million for the three months ended December 31, 2016 . Net tax benefits specific to the three months ended December 31, 2016 were $0.1 million resulting primarily from the reversal of tax reserves due to the expiration of statutes of limitation from U.S. and foreign tax jurisdictions. For the three months ended December 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 also due to certain tax credits in the U.S. Income tax provision for continuing operations was $0.4 million for the three months ended December 31, 2015 . Net tax benefits specific to the period of $0.7 million resulted from the reinstatement of the federal research and development tax credit for calendar year 2015 and reversal of tax reserves due to the expiration of statutes of limitation from U.S. and foreign tax jurisdictions. For the three months ended December 31, 2015 , our continuing operations effective tax rate before items specific to the period was less than the U.S. statutory rate primarily due primarily in the mix of income between taxing jurisdictions, certain of which have lower statutory tax rates than the U.S., and reinstatement of the federal research and development tax credit. Our effective tax rate will vary based on a variety of factors, including overall profitability, the geographical mix of income before taxes and related statutory tax rate in each jurisdiction, and tax items specific to the period, such as settlements of audits. We expect that we may record other benefits or expenses in the future that are specific to a particular quarter such as expiration of statutes of limitation, the completion of tax audits, or legislation that is enacted for both U.S. and foreign jurisdictions. A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands): Unrecognized tax benefits as of September 30, 2016 $ 1,708 Decreases related to: Expiration of statute of limitations (79 ) Unrecognized tax benefits as of December 31, 2016 $ 1,629 The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate is $1.4 million , after considering the impact of interest and deferred benefit items. We expect that the total amount of unrecognized tax benefits will decrease by approximately $0.4 million over the next 12 months.

Product Warranty Obligation

Product Warranty Obligation	3 Months Ended
	Dec. 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 October 1 issued made December 31 Three months ended December 31, 2016 $ 1,033 $ 169 $ (177 ) $ 1,025 Three months ended December 31, 2015 $ 1,014 $ 120 $ (166 ) $ 968 We are not responsible for, and do not warrant that, custom software versions, created by original equipment manufacturer (OEM) customers based upon our software source code, will function in a particular way, will conform to any specifications or are fit for any particular purpose. Further, we do not indemnify these customers from any third-party liability as it relates to or arises from any customization or modifications made by the OEM customer.

Contingencies

Contingencies	3 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES In the normal course of business, we are subject to various claims and litigation. There can be no assurance that any claims by third parties, if proven to have merit, will not materially adversely affect our business, liquidity or financial condition.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Dec. 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 “2016 Plan”) beginning February 1, 2016 and prior to that were granted under the 2014 Omnibus Incentive Plan (the “2014 Plan”). 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. As of December 31, 2016 , there were approximately 780,482 shares available for future grants under the 2016 Plan. Our equity plans and corresponding forms of award agreements generally have provisions allowing employees to elect to satisfy tax withholding obligations through the delivery of shares, having us retain a portion of shares issuable under the award or paying cash to us for the withholding. During the three months ended December 31, 2016 and 2015 , our employees forfeited 28,701 shares and 32,903 shares, respectively in order to satisfy $0.4 million of withholding tax obligations related to stock-based compensation, pursuant to terms of awards under our board and shareholder-approved compensation plans for each respective period. Cash received from the exercise of stock options was $2.8 million and $5.8 million during the three months ended December 31, 2016 and 2015 , respectively. There were $0.2 million in excess tax benefits from stock-based compensation for both the three months ended December 31, 2016 and 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 $0.3 million during both the three month periods ended December 31, 2016 and 2015 . Pursuant to the Purchase Plan, 30,351 and 30,564 common shares were issued to employees during the three months ended December 31, 2016 and 2015 , respectively. Shares are issued under the Purchase Plan from treasury stock. As of December 31, 2016 , 483,265 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 December 31, 2016 2015 Cost of sales $ 62 $ 54 Sales and marketing 340 199 Research and development 182 148 General and administrative 589 410 Stock-based compensation before income taxes 1,173 811 Income tax benefit (375 ) (257 ) Stock-based compensation after income taxes $ 798 $ 554 12. STOCK-BASED COMPENSATION (CONTINUED) Stock-based compensation cost capitalized as part of inventory was immaterial as of December 31, 2016 and September 30, 2016 . 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, 2016 3,963 $10.36 Granted 598 12.87 Exercised (263 ) 10.60 Forfeited / Canceled (204 ) 13.43 Balance at December 31, 2016 4,094 $10.56 5.0 $ 13,397 Exercisable at December 31, 2016 2,625 $10.23 4.1 $ 9,586 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $13.75 as of December 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 three months ended December 31, 2016 was $0.8 million and during the three months ended December 31, 2015 was $1.6 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: Three months ended December 31, 2016 2015 Weighted average per option grant date fair value $4.64 $4.30 Assumptions used for option grants: Risk free interest rate 1.46% - 1.96% 1.85% Expected term 6.00 years 6.00 years Expected volatility 33% - 34% 32% Weighted average volatility 34% 32% 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. The expected term of options granted is derived from the vesting period and historical information and represents the period of time that options granted are expected to be outstanding. The risk-free rate used is the zero-coupon U.S. Treasury bond rate in effect at the time of the grant whose maturity equals the expected term of the option. We use historical data to estimate pre-vesting forfeiture rates. The pre-vesting forfeiture rate used during the three months ended December 31, 2016 was 10.0% . As of December 31, 2016 the total unrecognized compensation cost related to non-vested stock options, net of expected forfeitures, was $4.7 million and the related weighted average period over which it is expected to be recognized is approximately 3.7 years. 12. STOCK-BASED COMPENSATION (CONTINUED) A summary of our non-vested restricted stock units as of December 31, 2016 and changes during the three months then ended is presented below (in thousands, except per common share amounts): Number of Awards Weighted Average Grant Date Fair Value Nonvested at September 30, 2016 505 $ 9.67 Granted 248 $ 12.74 Vested (92 ) $ 9.46 Nonvested at December 31, 2016 661 $ 10.85 As of December 31, 2016 , the total unrecognized compensation cost related to non-vested restricted stock units was $5.0 million and the related weighted average period over which it is expected to be recognized is approximately 1.7 years.

Restructuring

Restructuring	3 Months Ended
	Dec. 31, 2016
Restructuring and Related Activities [Abstract]
RESTRUCTURING	RESTRUCTURING Below is a summary of the restructuring charges and other activity (in thousands): Q1 2016 Restructuring Employee Other Total Balance at September 30, 2015 $ — $ — $ — Restructuring charge 480 171 651 Balance at December 31, 2015 $ 480 $ 171 $ 651 Q1 2016 Restructuring In November 2015, we approved a restructuring plan impacting our corporate staff. The plan closed our Dortmund, Germany office and relocated certain employees to our Munich, Germany office. We also recorded a contract termination charge as we relocated employees in our Minneapolis, Minnesota office to our World Headquarters in Minnetonka, Minnesota, 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. These restructurings resulted in an elimination of approximately 10 positions. The payments associated with these charges were completed in the third quarter of fiscal 2016.

Common Stock Repurchase

Common Stock Repurchase	3 Months Ended
	Dec. 31, 2016
Common Stock Repurchase [Abstract]
COMMON STOCK REPURCHASE	COMMON STOCK REPURCHASE 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. There were no shares repurchased under this program as of December 31, 2016.

Subsequent Event

Subsequent Event	3 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENT On January 9, 2017, we purchased all of the outstanding interests of SMART Temps, LLC, an Indiana-based provider of real-time foodservice temperature management for restaurant, grocery, education and hospital settings as well as real-time temperature management for pharmacy, blood bank and laboratory environments. We believe this is a complementary acquisition for us as the acquired technology will continue to be supported to further enhance our portfolio of products for the Digi Cold Chain Solution’s market. The terms of the acquisition included an upfront cash payment together with future earn-out payments and a holdback amount. Cash of $28.8 million was paid at time of closing. The earn-out payments are scheduled to be paid after December 31, 2017 which is the end of the earn-out period. The cumulative amount of these earn-out payments will not exceed $7.2 million . A 15. SUBSEQUENT EVENT (CONTINUED) preliminary purchase price allocation, estimated acquisition costs and proforma financial information are not available due to the timing of the acquisition.

Basis of Presentation of Unau22

Basis of Presentation of Unaudited Interim Condensed Consolidated Financial Statements and Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Adopted In April 2015, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-05, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” The new standard provides guidance to customers about whether a cloud computing arrangement includes a software license. If the arrangement does include a software license, the software license element of the arrangement should be accounted for in the same manner as the acquisition of other software licenses. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early adoption permitted. We adopted this guidance beginning with our fiscal quarter ending December 31, 2016. The adoption of this standard did not have a material impact on our consolidated financial statements. Not Yet Adopted In August 2016, FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments.” The amendments in this update provide guidance on eight specific cash flow issues, thereby reducing the diversity in practice in how certain transaction are classified in the statement of cash flows. This ASU is effective for annual periods and interim periods for those annual periods beginning after December 15, 2017, which for us is the first quarter ended December 31, 2018. Early adoption is permitted. We are currently evaluating the impact of the adoption of ASU 2016-15 on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses. This ASU is effective for annual periods and interim periods for those annual periods beginning after December 15, 2019, which for us is the first quarter ended December 31, 2020. Entities may early adopt beginning after December 15, 2018. We are currently evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements. In March 2016, FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” 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 will adopt ASU 2016-09 beginning October 1, 2017. We are currently evaluating the impact of the adoption of ASU 2016-09 1. BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) on our consolidated financial statements. Prospectively, beginning October 1, 2017, excess tax benefits and tax deficiencies will be reflected as income tax benefit or expense in our Consolidated Statement of Operations and could result in a material impact. The extent of the excess tax benefits or tax deficiencies are subject to variation in our stock price and the timing of RSU vestings and employee stock option exercises. In February, 2016, FASB issued ASU 2016-02, “Leases (Topic 842)”, 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, “Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 will require equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income. The amendments in this update will also simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, eliminate the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet and require these entities to use the exit price notion when measuring fair value of financial instruments for disclosure purposes. This ASU would also change the presentation and disclosure requirements for financial instruments. In addition, this ASU clarifies the guidance related to valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The amendments in this 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 August 2014, FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern.” This guidance requires management to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. These amendments are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter, which for us, will be our annual period ended September 30, 2017. Early adoption is permitted. While we are evaluating the impact of the adoption of ASU 2014-15, we do not expect it to have an impact on our consolidated financial statements. In May 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This guidance provides a five-step analysis in determining when and how revenue is recognized so that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods and services. It also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14 “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” which approved a one-year deferral of the effective date of ASU 2014-09. As a result of this deferral, ASU 2014-09 is effective for our fiscal 2019, including interim periods within that reporting period. The FASB also agreed to allow us to choose to adopt the standard effective for our fiscal 2018. In addition, the FASB issued ASU 2016-08, ASU 2016-10 and ASU 2016-12 in March 2016, April 2016 and May 2016, respectively, to provide interpretive clarifications on the new guidance in ASC Topic 606. We are currently working through an adoption plan and have identified our revenue streams and completed a preliminary analysis of how we currently account for revenue transactions compared to the revenue accounting required under the new standard. We intend to complete our adoption plan in fiscal 2017. This plan includes a review of transactions supporting each revenue stream to determine the impact of 1. BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) accounting treatment under ASC 606, evaluation of the method of adoption, and completing a rollout plan for implementation of the new standard with affected functions in our organization. Because of the nature of the work that remains, at this time we are unable to reasonably estimate the impact of adoption on our consolidated financial statements. We plan to adopt the new guidance beginning October 1, 2018.

Acquisition (Tables)

Acquisition (Tables)	3 Months Ended
	Dec. 31, 2016
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the preliminary values of FreshTemp assets acquired and liabilities assumed as of the acquisition date (in thousands): Cash $ 1,690 Purchase price payable upon completion of diligence matters 310 Fair value of contingent consideration on acquired business 1,300 Total purchase price consideration $ 3,300 Fair value of net tangible assets acquired $ (37 ) Fair value of identifiable intangible assets acquired: Purchased and core technology 350 Customer relationships 250 Goodwill 2,737 Total $ 3,300

Discontinued Operations (Tables

Discontinued Operations (Tables)	3 Months Ended
	Dec. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]
Disposal Groups, Including Discontinued Operations	The following table presents amortization, depreciation and purchases of property, equipment, improvements and certain other identifiable intangible assets of the discontinued operations related to Etherios (in thousands): Three months ended December 31, 2015 Amortization of identifiable intangible assets $ 30 Depreciation of property, equipment and improvements $ — Purchases of property, equipment, improvements and certain other identifiable intangible assets $ — Income from discontinued operations, after income taxes, as presented in the Condensed Consolidated Statements of Operations for the three months ended December 31, 2015 is as follows (in thousands): Three months ended December 31, 2015 Service revenue $ 891 Cost of service 713 Gross profit 178 Operating expenses: Sales and marketing 148 Research and development 103 General and administrative 43 Total operating expenses 294 Loss from discontinued operations, before income taxes (116 ) Gain on sale of discontinued operations, before income taxes 2,912 Total income from discontinued operations, before income taxes 2,796 Income tax benefit on discontinued operations (523 ) Income from discontinued operations, after income taxes $ 3,319

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Dec. 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 per common share calculations (in thousands, except per common share data): Three months ended December 31, 2016 2015 Numerator: Income from continuing operations $ 2,357 $ 3,131 Income from discontinued operations, after income taxes — 3,319 Net income $ 2,357 $ 6,450 Denominator: Denominator for basic net income per common share — weighted average shares outstanding 26,175 25,331 Effect of dilutive securities: Stock options and restricted stock units 797 840 Denominator for diluted net income per common share — adjusted weighted average shares 26,972 26,171 Basic net income per common share: Continuing operations $ 0.09 $ 0.12 Discontinued operations $ — $ 0.13 Net income $ 0.09 $ 0.25 Diluted net income per common share: Continuing operations $ 0.09 $ 0.12 Discontinued operations $ — $ 0.13 Net income $ 0.09 $ 0.25

Selected Balance Sheet Data (Ta

Selected Balance Sheet Data (Tables)	3 Months Ended
	Dec. 31, 2016
Selected Balance Sheet Data [Abstract]
Schedule of Selected Balance Sheet Data	The following table shows selected balance sheet data (in thousands): December 31, September 30, 2016 Accounts receivable, net: Accounts receivable $ 30,464 $ 30,885 Less allowance for doubtful accounts 204 209 Less reserve for future returns and pricing adjustments 2,255 1,991 Accounts receivable, net $ 28,005 $ 28,685 Inventories: Raw materials $ 19,264 $ 21,116 Work in process 741 802 Finished goods 4,333 4,358 Inventories $ 24,338 $ 26,276

Marketable Securities (Tables)

Marketable Securities (Tables)	3 Months Ended
	Dec. 31, 2016
Marketable Securities [Abstract]
Schedule of Marketable Securities	At December 31, 2016 our marketable securities were (in thousands): Amortized Cost (1) Unrealized Gains Unrealized Losses Fair Value (1) Current marketable securities: Corporate bonds $ 33,979 $ — $ (50 ) $ 33,929 Commercial paper 13,990 — (2 ) 13,988 Certificates of deposit 4,015 7 — 4,022 Current marketable securities 51,984 7 (52 ) 51,939 Non-current marketable securities: Certificates of deposit 3,260 15 — 3,275 Total marketable securities $ 55,244 $ 22 $ (52 ) $ 55,214 (1) Included in amortized cost and fair value is purchased and accrued interest of $282 . At September 30, 2016 our marketable securities were (in thousands): Amortized Cost (1) Unrealized Gains Unrealized Losses Fair Value (1) Current marketable securities: Corporate bonds $ 28,801 $ — $ (34 ) $ 28,767 Commercial paper 23,963 — (20 ) 23,943 Certificates of deposit 3,755 13 — 3,768 Government municipal bonds 1,904 — — 1,904 Current marketable securities 58,423 13 (54 ) 58,382 Non-current marketable securities: Certificates of deposit 3,505 36 — 3,541 Total marketable securities $ 61,928 $ 49 $ (54 ) $ 61,923 (1) Included in amortized cost and fair value is purchased and accrued interest of $271 .
Schedule of Unrealized Losses on Available-For-Sale Securities	The following tables show the fair values and gross unrealized losses of our available-for-sale marketable securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category (in thousands): December 31, 2016 Less than 12 Months More than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 31,917 $ (49 ) $ 2,012 $ (1 ) Commercial paper 13,988 (2 ) — — Total $ 45,905 $ (51 ) $ 2,012 $ (1 ) September 30, 2016 Less than 12 Months More than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 24,454 $ (33 ) $ 4,102 $ (1 ) Commercial paper 23,943 (20 ) — — Total $ 48,397 $ (53 ) $ 4,102 $ (1 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Dec. 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 December 31, 2016 Level 1 Level 2 Level 3 Assets: Money market $ 44,633 $ 44,633 $ — $ — Corporate bonds 33,929 — 33,929 — Commercial paper 13,988 — 13,988 — Certificates of deposit 7,297 — 7,297 — Total assets measured at fair value $ 99,847 $ 44,633 $ 55,214 $ — Liabilities: Contingent consideration on acquired business 10,660 $ — $ — $ 10,660 Total liabilities measured at fair value $ 10,660 $ — $ — $ 10,660 Total carrying value at Fair Value Measurements Using Inputs Considered as September 30, 2016 Level 1 Level 2 Level 3 Assets: Money market $ 44,319 $ 44,319 $ — $ — Corporate bonds 28,767 — 28,767 — Commercial paper 23,943 — 23,943 — Certificates of deposit 7,309 — 7,309 — Government municipal bonds 1,904 — 1,904 — Total assets measured at fair value $ 106,242 $ 44,319 $ 61,923 $ — Liabilities: Contingent consideration on acquired business $ 9,960 $ — $ — $ 9,960 Total liabilities measured at fair value $ 9,960 $ — $ — $ 9,960
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 months ended December 31, 2016 and 2015 (in thousands): Three months ended December 31, 2016 2015 Fair value at October 1 $ 9,960 $ — Purchase price contingent consideration 1,300 10,400 Contingent consideration payments (518 ) — Change in fair value of contingent consideration (82 ) — Fair value at December 31 $ 10,660 $ 10,400

Goodwill and Other Identifiab29

Goodwill and Other Identifiable Intangible Assets, Net (Tables)	3 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Amortizable Identifiable Intangible Assets	Amortizable identifiable intangible assets were (in thousands): December 31, 2016 September 30, 2016 Gross carrying amount Accum. amort. Net Gross carrying amount Accum. amort. Net Purchased and core technology $ 46,558 $ (44,756 ) $ 1,802 $ 46,594 $ (44,999 ) $ 1,595 License agreements 18 (12 ) 6 18 (10 ) 8 Patents and trademarks 11,537 (10,846 ) 691 11,619 (10,871 ) 748 Customer relationships 17,432 (15,632 ) 1,800 17,463 (15,773 ) 1,690 Total $ 75,545 $ (71,246 ) $ 4,299 $ 75,694 $ (71,653 ) $ 4,041
Schedule of Estimated Future Amortization Expense Related to Identifiable Intangible Assets	Estimated amortization expense related to identifiable intangible assets for the remainder of fiscal 2017 and the five succeeding fiscal years is (in thousands): 2017 (nine months) $ 1,131 2018 1,321 2019 958 2020 401 2021 232 2022 163
Schedule of Changes in Carrying Amount of Goodwill	The changes in the carrying amount of goodwill are (in thousands): Three months ended 2016 2015 Beginning balance, October 1 $ 109,448 $ 100,183 Acquisitions 2,737 11,020 Foreign currency translation adjustment (1,069 ) (959 ) Ending balance, December 31 $ 111,116 $ 110,244

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Dec. 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, 2016 $ 1,708 Decreases related to: Expiration of statute of limitations (79 ) Unrecognized tax benefits as of December 31, 2016 $ 1,629

Product Warranty Obligation (Ta

Product Warranty Obligation (Tables)	3 Months Ended
	Dec. 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 October 1 issued made December 31 Three months ended December 31, 2016 $ 1,033 $ 169 $ (177 ) $ 1,025 Three months ended December 31, 2015 $ 1,014 $ 120 $ (166 ) $ 968

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Dec. 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 December 31, 2016 2015 Cost of sales $ 62 $ 54 Sales and marketing 340 199 Research and development 182 148 General and administrative 589 410 Stock-based compensation before income taxes 1,173 811 Income tax benefit (375 ) (257 ) Stock-based compensation after income taxes $ 798 $ 554
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, 2016 3,963 $10.36 Granted 598 12.87 Exercised (263 ) 10.60 Forfeited / Canceled (204 ) 13.43 Balance at December 31, 2016 4,094 $10.56 5.0 $ 13,397 Exercisable at December 31, 2016 2,625 $10.23 4.1 $ 9,586 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $13.75 as of December 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: Three months ended December 31, 2016 2015 Weighted average per option grant date fair value $4.64 $4.30 Assumptions used for option grants: Risk free interest rate 1.46% - 1.96% 1.85% Expected term 6.00 years 6.00 years Expected volatility 33% - 34% 32% Weighted average volatility 34% 32% Expected dividend yield 0 0
Schedule of Nonvested Restricted Stock Units	A summary of our non-vested restricted stock units as of December 31, 2016 and changes during the three months then ended is presented below (in thousands, except per common share amounts): Number of Awards Weighted Average Grant Date Fair Value Nonvested at September 30, 2016 505 $ 9.67 Granted 248 $ 12.74 Vested (92 ) $ 9.46 Nonvested at December 31, 2016 661 $ 10.85

Restructuring (Tables)

Restructuring (Tables)	3 Months Ended
	Dec. 31, 2016
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Reserve	Below is a summary of the restructuring charges and other activity (in thousands): Q1 2016 Restructuring Employee Other Total Balance at September 30, 2015 $ — $ — $ — Restructuring charge 480 171 651 Balance at December 31, 2015 $ 480 $ 171 $ 651

Acquisition (Details)

Acquisition (Details) - USD ($) $ in Thousands	Nov. 01, 2016	Oct. 05, 2015	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Business Acquisition [Line Items]
Goodwill			$ 111,116	$ 109,448	$ 110,244	$ 100,183
FreshTemp
Business Acquisition [Line Items]
Cash paid at closing	$ 1,690
Fair value of contingent consideration	1,300
Acquisition costs			$ 100
Goodwill	$ 2,737
Weighted average use life of acquired intangibles	5 years 9 months 18 days
Bluenica Corporation
Business Acquisition [Line Items]
Cash paid at closing		$ 2,900
Earn-out payment installment period		4 years
Fair value of contingent consideration		$ 10,400
Goodwill		11,000
Purchased and Core Technology | FreshTemp
Business Acquisition [Line Items]
Estimated useful life of finite lived intangibles	5 years
Customer Relationships | FreshTemp
Business Acquisition [Line Items]
Estimated useful life of finite lived intangibles	7 years
Maximum earn-out payments | FreshTemp
Business Acquisition [Line Items]
Earn-out payment maximum	$ 2,300
Maximum 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	Nov. 01, 2016	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Business Acquisition [Line Items]
Goodwill		$ 111,116	$ 109,448	$ 110,244	$ 100,183
FreshTemp
Business Acquisition [Line Items]
Cash	$ 1,690
Purchase price payable upon completion of diligence matters	310
Fair value of contingent consideration on acquired business	1,300
Total purchase price consideration	3,300
Fair value of net tangible assets acquired	(37)
Goodwill	2,737
Total assets acquired and liabilities assumed	3,300
Purchased and Core Technology | FreshTemp
Business Acquisition [Line Items]
Fair value of identifiable intangible assets acquired	350
Customer Relationships | FreshTemp
Business Acquisition [Line Items]
Fair value of identifiable intangible assets acquired	$ 250

Discontinued Operations (Detail

Discontinued Operations (Details) - Etherios, Inc. - Discontinued Operations, Disposed of by Sale - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Oct. 31, 2016	Dec. 31, 2015	Oct. 23, 2017	Dec. 31, 2016	Oct. 23, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration receivable					$ 3,000
Proceeds from Divestiture of Businesses	$ 3,000
Receivable from Divestiture of Business				$ 2,000
Income tax benefit on discontinued operations		$ (523)
Forecast
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration receivable			$ 2,000

Discontinued Operations (Income

Discontinued Operations (Income from Discontinued Operations, after Income Taxes) (Details) - Etherios, Inc. - Discontinued Operations, Disposed of by Sale $ in Thousands	3 Months Ended
	Dec. 31, 2015USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Service revenue	$ 891
Cost of service	713
Gross profit	178
Operating expenses:
Sales and marketing	148
Research and development	103
General and administrative	43
Total operating expenses	294
Loss from discontinued operations, before income taxes	(116)
Gain on sale of discontinued operations, before income taxes	2,912
Total income from discontinued operations, before income taxes	2,796
Income tax benefit on discontinued operations	(523)
Income from discontinued operations, after income taxes	$ 3,319

Discontinued Operations (Amorti

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

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Numerator:
Income continuing operations	$ 2,357	$ 3,131
Income from discontinued operations, after income taxes	0	3,319
Net income	$ 2,357	$ 6,450
Denominator:
Denominator for basic net income per common share — weighted average shares outstanding	26,175,000	25,331,000
Effect of dilutive securities:
Stock options and restricted stock units	797,000	840,000
Denominator for diluted net income per common share — adjusted weighted average shares	26,972,000	26,171,000
Basic net income per common share:
Continuing operations, basic (USD per share)	$ 0.09	$ 0.12
Discontinued operations, basic (USD per share)	0	0.13
Net income, basic (USD per share)	0.09	0.25
Diluted net income per common share
Continuing operations, diluted (USD per share)	0.09	0.12
Discontinued operations, diluted (USD per share)	0	0.13
Net income, diluted (USD per share)	$ 0.09	$ 0.25
Potentially dilutive securities excluded from computation of earnings per share	1,108,900	902,084

Selected Balance Sheet Data (De

Selected Balance Sheet Data (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Accounts receivable, net:
Accounts receivable	$ 30,464	$ 30,885
Less allowance for doubtful accounts	204	209
Less reserve for future returns and pricing adjustments	2,255	1,991
Accounts receivable, net	28,005	28,685
Inventories:
Raw materials	19,264	21,116
Work in process	741	802
Finished goods	4,333	4,358
Inventories	$ 24,338	$ 26,276

Marketable Securities (Details)

Marketable Securities (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2016USD ($)Security	Dec. 31, 2015USD ($)
Schedule of Available-for-sale Securities [Line Items]
Number of securities below amortized cost basis	18
Number of securities	47
Proceeds from maturities of marketable securities | $	$ 32,155	$ 7,106
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	2 years

Marketable Securities (Fair Val

Marketable Securities (Fair Value to Amortized Cost) (Details) - USD ($) $ in Thousands		Dec. 31, 2016		Sep. 30, 2016
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		$ 55,244	[1]	$ 61,928	[2]
Available-for-sale securities, unrealized gains		22		49
Available-for-sale securities, unrealized losses		(52)		(54)
Available-for-sale marketable securities, fair value		55,214	[1]	61,923	[2]
Purchased and accrued interest		282		271
Current Assets
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		51,984	[1]	58,423	[2]
Available-for-sale securities, unrealized gains		7		13
Available-for-sale securities, unrealized losses		(52)		(54)
Available-for-sale marketable securities, fair value		51,939	[1]	58,382	[2]
Current Assets | Corporate Bonds
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		33,979	[1]	28,801	[2]
Available-for-sale securities, unrealized gains		0		0
Available-for-sale securities, unrealized losses		(50)		(34)
Available-for-sale marketable securities, fair value		33,929	[1]	28,767	[2]
Current Assets | Commercial Paper
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		13,990	[1]	23,963	[2]
Available-for-sale securities, unrealized gains		0		0
Available-for-sale securities, unrealized losses		(2)		(20)
Available-for-sale marketable securities, fair value		13,988	[1]	23,943	[2]
Current Assets | Certificates of Deposit
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		4,015	[1]	3,755	[2]
Available-for-sale securities, unrealized gains		7		13
Available-for-sale securities, unrealized losses		0		0
Available-for-sale marketable securities, fair value		4,022	[1]	3,768	[2]
Current Assets | Government municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis	[2]			1,904
Available-for-sale securities, unrealized gains				0
Available-for-sale securities, unrealized losses				0
Available-for-sale marketable securities, fair value	[2]			1,904
Non-current Assets | Certificates of Deposit
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis		3,260	[1]	3,505	[2]
Available-for-sale securities, unrealized gains		15		36
Available-for-sale securities, unrealized losses		0		0
Available-for-sale marketable securities, fair value		$ 3,275	[1]	$ 3,541	[2]
[1]	Included in amortized cost and fair value is purchased and accrued interest of $282
[2]	Included in amortized cost and fair value is purchased and accrued interest of $271.

Marketable Securities (Fair V43

Marketable Securities (Fair Value and Gross Unrealized Losses for AFS) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
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	$ 45,905	$ 48,397
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(51)	(53)
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer	2,012	4,102
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	31,917	24,454
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(49)	(33)
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer	2,012	4,102
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(1)	(1)
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	13,988	23,943
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(2)	(20)
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	Dec. 31, 2016		Sep. 30, 2016		Dec. 31, 2015	Sep. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale marketable securities	$ 55,214	[1]	$ 61,923	[2]
Contingent consideration on acquired business	10,660		9,960		$ 10,400	$ 0
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	44,633		44,319
Total liabilities measured at fair value	0		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	55,214		61,923
Total liabilities measured at fair value	0		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	10,660		9,960
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		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		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	10,660		9,960
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	44,633		44,319
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	33,929		28,767
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	13,988		23,943
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	7,297		7,309
Certificates of Deposit | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale marketable securities	0		0
Government municipal bonds | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale marketable securities			0
Government municipal bonds | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale marketable securities			1,904
Government municipal bonds | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale marketable securities			0
Estimate of Fair Value Measurement | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	99,847		106,242
Total liabilities measured at fair value	10,660		9,960
Estimate of Fair Value Measurement | Liability | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration on acquired business	10,660		9,960
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	44,633		44,319
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	33,929		28,767
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	13,988		23,943
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	$ 7,297		7,309
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			$ 1,904
[1]	Included in amortized cost and fair value is purchased and accrued interest of $282
[2]	Included in amortized cost and fair value is purchased and accrued interest of $271.

Fair Value Measurements (Reconc

Fair Value Measurements (Reconciliation of Liability) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at beginning of period	$ 9,960	$ 0
Purchase price contingent consideration	1,300	10,400
Contingent consideration payments	(518)	0
Change in fair value of contingent consideration	(82)	0
Fair value at end of period	$ 10,660	$ 10,400

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Oct. 05, 2015	Dec. 31, 2016	Dec. 31, 2015
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Purchase price contingent consideration		$ 1,300	$ 10,400
Bluenica Corporation
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Earn-out payment installment period	4 years
Purchase price contingent consideration			10,400
Bluenica Corporation | Minimum | Fair Value, Inputs, Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value inputs probability of payment		75.80%
Bluenica Corporation | Maximum | Fair Value, Inputs, Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value inputs probability of payment		98.00%
FreshTemp
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Purchase price contingent consideration			$ 1,300
FreshTemp | Minimum | Fair Value, Inputs, Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value inputs probability of payment		25.00%
FreshTemp | Maximum | Fair Value, Inputs, Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value inputs probability of payment		100.00%

Goodwill and Other Identifiab47

Goodwill and Other Identifiable Intangible Assets, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 75,545	$ 75,694
Accumulated amortization	(71,246)	(71,653)
Net	4,299	4,041
Purchased and Core Technology
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	46,558	46,594
Accumulated amortization	(44,756)	(44,999)
Net	1,802	1,595
License Agreements
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	18	18
Accumulated amortization	(12)	(10)
Net	6	8
Patents and Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	11,537	11,619
Accumulated amortization	(10,846)	(10,871)
Net	691	748
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	17,432	17,463
Accumulated amortization	(15,632)	(15,773)
Net	$ 1,800	$ 1,690

Goodwill and Other Identifiab48

Goodwill and Other Identifiable Intangible Assets, Net (Amortization Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
2017 (nine months)	$ 1,131
2,018	1,321
2,019	958
2,020	401
2,021	232
2,022	163
Cost of Sales and General and Administrative Expense
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 300	$ 400

Goodwill and Other Identifiab49

Goodwill and Other Identifiable Intangible Assets, Net (Goodwill Rollforward) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Goodwill [Roll Forward]
Beginning balance	$ 109,448	$ 100,183
Acquisitions	2,737	11,020
Foreign currency translation adjustment	(1,069)	(959)
Ending balance	$ 111,116	$ 110,244

Goodwill and Other Identifiab50

Goodwill and Other Identifiable Intangible Assets, Net (Additional Information) (Details) $ in Thousands	Jun. 30, 2014industry	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)
Goodwill [Line Items]
Market capitalization				$ 278,600
Carrying value		$ 302,108	$ 300,029	$ 294,900
Control premium percent	35.00%
Percent fair value in excess of carrying value of goodwill				27.00%
Target companies equity benchmark	50.00%
Number of industries encompasses similar products | industry	3
Minimum
Goodwill [Line Items]
Control premium percent	30.00%
Maximum
Goodwill [Line Items]
Control premium percent	40.00%

Income Taxes (Unrecognized Tax

Income Taxes (Unrecognized Tax Benefits) (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2016USD ($)
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, beginning balance	$ 1,708
Decreases related to Expiration of statute of limitations	(79)
Unrecognized tax benefits, ending balance	$ 1,629

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income tax provision	$ 765	$ 381
Income tax benefit specific to the period	100	$ 700
Unrecognized tax benefits that would impact effective tax rate	1,400
Decrease in unrecognized tax benefits that is reasonably possible	$ 400

Product Warranty Obligation (De

Product Warranty Obligation (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Product Warranties Disclosures [Abstract]
Warranty period, minimum	1 year
Warranty period, maximum	5 years
Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 1,033	$ 1,014
Warranties issued	169	120
Settlements made	(177)	(166)
Ending balance	$ 1,025	$ 968

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Feb. 01, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Paid for Tax Withholding for Share Based Compensation	28,701	32,903
Tax withholding for share-based compensation	$ 400	$ 400
Proceeds from stock option plan transactions	2,787	5,752
Excess tax benefits from stock-based compensation	183	190
Employee contributions	297	301
Total intrinsic value of all options exercised	$ 800	1,600
Forfeiture rate	10.00%
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost nonvested awards	$ 4,700
Weighted average period, unrecognized compensation cost, nonvested awards	3 years 8 months 12 days
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost nonvested restricted stock units	$ 5,000
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	780,482
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 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	$ 297	$ 301
Common shares issued to employees	30,351	30,564
Shares available for future issuance	483,265
Director | The 2016 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

Stock-Based Compensation (Stock

Stock-Based Compensation (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 1,173	$ 811
Income tax benefit	(375)	(257)
Stock-based compensation after income taxes	798	554
Cost of Sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	62	54
Sales and Marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	340	199
Research and Development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	182	148
General and Administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 589	$ 410

Stock-Based Compensation (Optio

Stock-Based Compensation (Options and Common Shares Reserved for Grant) (Details) - Stock Options $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares
Options Outstanding [Roll Forward]
Options Outstanding, Beginning Balance (in shares) | shares	3,963
Options Outstanding, Granted (in shares) | shares	598
Options Outstanding, Exercised (in shares) | shares	(263)
Options Outstanding, Forfeited / Canceled (in shares) | shares	(204)
Options Outstanding, Ending Balance (in shares) | shares	4,094
Options Outstanding, Exercisable (in shares) | shares	2,625
Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price, Beginning Balance	$ 10.36
Weighted Average Exercise Price, Granted	12.87
Weighted Average Exercise Price, Exercised	10.60
Weighted Average Exercise Price, Forfeited / Canceled	13.43
Weighted Average Exercise Price, Ending Balance	10.56
Weighted Average Exercise Price, Exercisable	$ 10.23
Weighted Average Remaining Contractual Term [Abstract]
Weighted Average Remaining Contractual Term, Outstanding	5 years
Weighted Average Remaining Contractual Term, Exercisable	4 years 1 month 6 days
Aggregate Intrinsic Value [Abstract]
Aggregate Intrinsic Value, Outstanding | $	$ 13,397	[1]
Aggregate Intrinsic Value, Exercisable | $	$ 9,586	[1]
Closing Stock Price	$ 13.75
[1]	The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $13.75 as of December 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	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average per option grant date fair value	$ 4.64	$ 4.30
Assumptions Used For Options Grants [Abstract]
Risk free interest rate, minimum	1.46%	1.85%
Risk free interest rate, maximum	1.96%
Expected term	6 years	6 years
Expected volatility rate, minimum	33.00%	32.00%
Expected volatility rate, maximum	34.00%
Weighted average volatility	34.00%	32.00%
Expected dividend yield	0.00%	0.00%

Stock-Based Compensation (Non-V

Stock-Based Compensation (Non-Vested Options) (Details) - Restricted Stock Units shares in Thousands	3 Months Ended
	Dec. 31, 2016$ / sharesshares
Nonvested Number of Restricted Stock Units [Roll Forward]
Number of Restricted Stock Units, Beginning Balance | shares	505
Number of Restricted Stock Units, Granted | shares	248
Number of Restricted Stock Units, Vested | shares	(92)
Number of Restricted Stock Units, Ending Balance | shares	661
Nonvested Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share [Roll Forward]
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Beginning Balance | $ / shares	$ 9.67
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Granted | $ / shares	12.74
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested | $ / shares	9.46
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance | $ / shares	$ 10.85

Restructuring (Details)

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

Common Stock Repurchase (Detail

Common Stock Repurchase (Details) - April 2016 Repurchase program - USD ($)	3 Months Ended
	Dec. 31, 2016	Apr. 26, 2016
Stock repurchase program, authorized amount		$ 15,000,000
Shares repurchased	0

Subsequent Event (Acquisition)

Subsequent Event (Acquisition) (Details) - SMART Temp - Subsequent Event $ in Millions	Jan. 09, 2017USD ($)
Subsequent Event [Line Items]
Cash paid at closing	$ 28.8
Maximum earn-out payments
Subsequent Event [Line Items]
Earn-out liability	$ 7.2