Digi International (DGII) 10-Q 7 Feb 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2019	Feb. 03, 2020
Document and Entity Information [Abstract]
Entity Registrant Name	DIGI INTERNATIONAL INC.
Entity Central Index Key	0000854775
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Emerging Growth Company	false
Entity Small Business	false
Amendment Flag	false
Entity Common Stock, Shares Outstanding		28,890,105
Entity Shell Company	false
Entity Current Reporting Status	Yes

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue:
Total Revenue	$ 62,317	$ 62,313
Cost of sales:
Amortization of intangibles	801	740
Total cost of sales	31,853	32,530
Gross profit	30,464	29,783
Operating expenses:
Sales and marketing	12,061	11,657
Research and development	10,331	9,518
General and administrative	8,555	3,117
Restructuring reversal	0	(67)
Total operating expenses	30,947	24,225
Operating (loss) income	(483)	5,558
Other (expense) income, net:
Interest income	231	208
Interest expense	(432)	(92)
Other (expense) income, net	(236)	48
Total other (expense) income, net	(437)	164
(Loss) income before income taxes	(920)	5,722
Income tax (benefit) expense	(1,128)	1,040
Net income	$ 208	$ 4,682
Basic net income per common share:
Net income, basic (USD per share)	$ 0.01	$ 0.17
Diluted net income per common share
Net income, diluted (USD per share)	$ 0.01	$ 0.17
Weighted average common shares:
Basic (shares)	28,467	27,513
Diluted (shares)	29,614	28,075
Product
Revenue:
Revenue	$ 54,247	$ 54,980
Cost of sales:
Cost of sales excluding amortization	28,491	28,669
Service
Revenue:
Revenue	8,070	7,333
Cost of sales:
Cost of sales excluding amortization	$ 2,561	$ 3,121

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income ((Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 208	$ 4,682
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	2,660	(1,569)
Change in net unrealized gain on investments	0	5
Less income tax expense	0	(2)
Other comprehensive income (loss), net of tax	2,660	(1,566)
Comprehensive income	$ 2,868	$ 3,116

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Current assets:
Cash and cash equivalents	$ 49,072	$ 92,792
Accounts receivable, net	81,097	56,417
Inventories	47,380	39,764
Other current assets	7,486	3,574
Total current assets	185,035	192,547
Property, equipment and improvements, net	13,206	13,857
Intangible assets, net	130,973	30,667
Goodwill	214,804	153,422
Deferred tax assets	424	7,330
Other non-current assets	16,462	875
Total assets	560,904	398,698
Current liabilities:
Accounts payable	23,165	21,183
Accrued compensation	7,146	8,733
Unearned revenue	6,415	5,025
Contingent consideration on acquired businesses	14,766	5,407
Current portion of long-term debt	1,972	0
Other current liabilities	8,061	4,110
Total current liabilities	61,525	44,458
Income taxes payable	1,139	1,192
Deferred tax liabilities	18,585	261
Long-term debt	105,470	0
Other non-current liabilities	17,870	3,809
Total liabilities	204,589	49,720
Contingencies (see Note 14)
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; 35,225,918 and 34,608,003 shares issued	352	346
Additional paid-in capital	272,393	266,567
Retained earnings	162,127	161,919
Accumulated other comprehensive loss	(22,855)	(25,515)
Treasury stock, at cost, 6,431,413 and 6,367,428 shares	(55,702)	(54,339)
Total stockholders' equity	356,315	348,978
Total liabilities and stockholders' equity	$ 560,904	$ 398,698

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Dec. 31, 2019	Sep. 30, 2019
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	35,225,918	34,608,003
Treasury stock, shares	6,431,413	6,367,428

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Operating activities:
Net income	$ 208	$ 4,682
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation of property, equipment and improvements	1,169	1,133
Amortization of intangible assets	2,448	2,540
Stock-based compensation	1,600	1,414
Deferred income tax provision	234	1,333
Gain on sale of property and equipment	0	(4,396)
Change in fair value of contingent consideration	259	243
Provision for bad debt and product returns	50	206
Provision for inventory obsolescence	455	450
Restructuring reversal	0	(67)
Other	161	113
Changes in operating assets and liabilities (net of acquisitions)	(28,651)	(1,540)
Net cash (used in) provided by operating activities	(22,067)	6,111
Investing activities:
Proceeds from maturities and sales of marketable securities	0	491
Acquisition of businesses, net of cash acquired	(136,098)	0
Proceeds from sale of property and equipment	0	10,047
Purchase of property, equipment, improvements and certain other intangible assets	(196)	(1,775)
Net cash (used in) provided by investing activities	(136,294)	8,763
Financing activities:
Proceeds from long-term debt	110,000	0
Payments for contingent consideration	0	(161)
Proceeds from stock option plan transactions	4,160	662
Proceeds from employee stock purchase plan transactions	286	289
Purchases of common stock	(1,577)	(964)
Net cash provided by (used in) financing activities	112,869	(174)
Effect of exchange rate changes on cash and cash equivalents	1,772	(492)
Net (decrease) increase in cash and cash equivalents	(43,720)	14,208
Cash and cash equivalents, beginning of period	92,792	58,014
Cash and cash equivalents, end of period	49,072	72,222
Supplemental schedule of non-cash investing and financing activities
Transfer of inventory to property, equipment and improvements	(186)	(200)
Contingent consideration recognized related to acquisition of business	(9,100)	0
Accrual for purchase of property, equipment, improvements and certain other intangible assets	$ 0	$ (2,883)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Sep. 30, 2018		33,813	6,385
Beginning balance at Sep. 30, 2018	$ 330,493	$ 338	$ (54,216)	$ 255,936	$ 151,961	$ (23,526)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,682				4,682
Other comprehensive income (loss)	(1,566)					(1,566)
Employee stock purchase plan issuances (in shares)			(33)
Employee stock purchase plan issuances	289		$ 288	1
Repurchase of common stock (in shares)			84
Repurchase of common stock	(964)		$ (964)
Issuance of stock under stock award plans (in shares)		263
Issuance of stock under stock award plans	662	$ 3		659
Stock-based compensation expense	1,414			1,414
Ending balance (in shares) at Dec. 31, 2018		34,076	6,436
Ending balance at Dec. 31, 2018	335,010	$ 341	$ (54,892)	258,010	156,643	(25,092)
Beginning balance (in shares) at Sep. 30, 2019		34,608	6,367
Beginning balance at Sep. 30, 2019	348,978	$ 346	$ (54,339)	266,567	161,919	(25,515)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	208				208
Other comprehensive income (loss)	2,660					2,660
Employee stock purchase plan issuances (in shares)			(25)
Employee stock purchase plan issuances	286		$ 214	72
Repurchase of common stock (in shares)			89
Repurchase of common stock	(1,577)		$ (1,577)
Issuance of stock under stock award plans (in shares)		618
Issuance of stock under stock award plans	4,160	$ 6		4,154
Stock-based compensation expense	1,600			1,600
Ending balance (in shares) at Dec. 31, 2019		35,226	6,431
Ending balance at Dec. 31, 2019	$ 356,315	$ 352	$ (55,702)	$ 272,393	$ 162,127	$ (22,855)

Basis of Presentation of Unaudi

Basis of Presentation of Unaudited Interim Condensed Consolidated Financial Statements and Significant Accounting Policies	3 Months Ended
	Dec. 31, 2019
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 unaudited condensed consolidated financial statements of Digi International Inc. (“we”, “us”, “our”, “Digi” or “the Company”) have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission applicable to interim financial statements. While these financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements. These financial statements should be read in conjunction with the financial statement disclosures in our Annual Report on Form 10-K for the year ended September 30, 2019 (the “2019 Financial Statements”). We use the same accounting policies in preparing quarterly and annual financial statements. The quarterly results of operations are not necessarily indicative of the results to be expected for the full year. Recently Issued Accounting Pronouncements Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , which provides for comprehensive changes to lease accounting. The standard requires that a lessee recognize a lease obligation liability and a right-to-use asset for virtually all leases, subsequently amortized over the lease term. We adopted this standard in the first quarter of fiscal 2020, following the modified retrospective application approach by applying the new standard to all applicable leases existing at the date of initial application and not restating comparative periods. We are substantially complete with our implementation efforts. These efforts have included identification and analysis of our lease portfolio, analysis and evaluation of the new reporting and disclosure requirements of the new guidance, and an evaluation of our lease-related processes and internal controls. The adoption of this standard resulted in the recognition of a right-of-use asset included in other non-current assets of approximately $14.1 million and a lease liability of approximately $17.9 million included in other current liabilities and other non-current liabilities on our condensed consolidated balance sheet in the first quarter of fiscal 2020. In adopting the new standard, we elected the package of practical expedients permitted under the transition guidance, as well as the practical expedient not to separate non-lease components from lease components. We also elected the practical expedient to use hindsight in determining the lease term when considering options to extend or terminate a lease, options to purchase the underlying asset, and in assessing the impairment of right-of-use assets. The adoption of this standard did not have a significant impact on our condensed consolidated results of operations or condensed consolidated statements of cash flows. We have identified new and updated existing internal controls and processes to support measurement, recognition and disclosure under this new standard, but such changes were not deemed to be material to our overall system of internal control over financial reporting. Not Yet Adopted In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance improves the disclosure requirements on fair value measurements. The updated guidance is effective for us in the first quarter ending December 31, 2020. Early adoption is permitted for any removed or modified disclosures. We are evaluating when to adopt, and the impact of adopting, ASU 2018-13 on our consolidated financial statements. In June 2016, 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 U.S. 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 us in the first quarter ending December 31, 2020. Entities may early adopt beginning after December 15, 2018. We are evaluating the impact of adopting ASU 2016-13 on our consolidated financial statements.

Acquisitions

Acquisitions	3 Months Ended
	Dec. 31, 2019
Business Combinations [Abstract]
ACQUISITIONS	ACQUISITIONS Acquisition of Opengear, Inc. On December 13, 2019, we completed our acquisition of Opengear, Inc. (“Opengear”), a New Jersey-based provider of secure IT infrastructure products and software. Opengear results are included in our condensed consolidated financial statements within our IoT Products & Services segment. The terms of the acquisition included an upfront cash payment as well as contingent consideration comprised of future earn-out payments. We funded the closing of the acquisition with cash of $148.1 million comprised of cash on hand and proceeds from our credit facility (see Note 13 to the condensed consolidated financial statements). The future earn-out payments are based on revenue performance from Opengear for the periods ended December 31, 2019 and ending December 31, 2020. The cumulative amount of these earn-outs for the periods ended December 31, 2019 and ending December 31, 2020, will not exceed $5.0 million and $10.0 million , respectively. The fair value of this contingent consideration was $9.1 million at both the date of acquisition and at December 31, 2019 (see Note 5 to the condensed consolidated financial statements). For tax purposes, this acquisition is treated as a stock acquisition. The goodwill therefore is not deductible. We believe this is a complementary acquisition for us as it significantly enhances our IoT Products and Services segment by providing secure, resilient access and automation to critical IT infrastructure. The Opengear acquisition has been accounted for using the acquisition method of accounting. This 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 Opengear assets acquired and liabilities assumed as of the acquisition date (in thousands): Cash $ 148,058 Contingent consideration 9,100 Total $ 157,158 Fair value of net tangible assets acquired $ 19,032 Identifiable intangible assets: Customer relationships 81,000 Purchased and core technology 13,700 Trademarks 8,000 Deferred tax liability on identifiable intangible assets (25,053 ) Goodwill 60,479 Total $ 157,158 The condensed consolidated balance sheet as of December 31, 2019 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. Given the timing of the Opengear acquisition, the estimated fair value of the net assets acquired, liabilities assumed and identifiable intangible assets are preliminary and remain subject to change. Included in the fair value of net tangible assets acquired was $1.4 million of right-of-use asset included in other non-current assets and $1.7 million of lease liability included in other current liabilities and other non-current liabilities associated with Opengear’s operating leases. The preliminary weighted average useful life for all the identifiable intangibles listed above is estimated to be 13.6 years . For purposes of determining fair value, the existing customer relationships identified above are assumed to have a useful life of 14.5 years , purchased and core technology is assumed to have useful life of 9.0 years and trademarks are assumed a useful life of 12.0 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. The identifiable intangible assets are amortized using the straight-line method which reflects the pattern in which the assets are expected to be consumed. Costs directly related to the acquisition of $0.3 million incurred in the fourth quarter of fiscal 2019 and $1.9 million incurred in fiscal 2020 have been charged directly to operations and are included in general and administrative expense in our condensed consolidated statements of operations. These acquisition costs include legal, accounting, valuation and investment banking fees. 2. ACQUISITIONS (CONTINUED) The following consolidated pro forma information is presented as if the acquisition had occurred on October 1, 2018 (in thousands): Three months ended December 31, 2019 2018 Net sales $ 77,213 $ 75,667 Net income $ 3,499 $ 3,141 Net income per share - basic $ 0.12 $ 0.11 Net income per share - diluted $ 0.12 $ 0.11 Pro forma net income has been adjusted to include interest expense related to debt incurred as a result of the acquisition, amortization on the fair value of the intangibles acquired and remove any costs incurred with the sale transaction. Net income for the three months ended December 31, 2018 was adjusted to include acquisition-related costs of $2.3 million .

Earnings Per Share

Earnings Per Share	3 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
EARNINGS PER SHARE	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, 2019 2018 Numerator: Net income $ 208 $ 4,682 Denominator: Denominator for basic net income per common share — weighted average shares outstanding 28,467 27,513 Effect of dilutive securities: Stock options and restricted stock units 1,147 562 Denominator for diluted net income per common share — adjusted weighted average shares 29,614 28,075 Net income per common share, basic $ 0.01 $ 0.17 Net income per common share, diluted $ 0.01 $ 0.17 For the three months ended December 31, 2019 and 2018 , there were 594,447 and 1,241,964 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 since 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, 2019
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, 2019 Accounts receivable, net: Accounts receivable $ 85,004 $ 60,062 Less allowance for doubtful accounts 940 968 Less reserve for future returns and pricing adjustments 2,967 2,677 Accounts receivable, net $ 81,097 $ 56,417 Inventories: Raw materials $ 17,149 $ 12,308 Work in process — 565 Finished goods 30,231 26,891 Inventories $ 47,380 $ 39,764

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 31, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Financial assets and liabilities are classified in the following fair value hierarchy based on the lowest level input that is significant to the fair value measurement: Level 1 (unadjusted quoted prices in active markets for identical assets or liabilities); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). 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 Fair Value at Fair Value Measurements Using Inputs Considered as December 31, 2019 Level 1 Level 2 Level 3 Liabilities: Contingent consideration on acquired businesses $ 14,766 $ — $ — $ 14,766 Total liabilities measured at fair value $ 14,766 $ — $ — $ 14,766 Total Fair Value at Fair Value Measurements Using Inputs Considered as September 30, 2019 Level 1 Level 2 Level 3 Assets: Money market $ 56,700 $ 56,700 $ — $ — Total assets measured at fair value $ 56,700 $ 56,700 $ — $ — Liabilities: Contingent consideration on acquired businesses $ 5,407 $ — $ — $ 5,407 Total liabilities measured at fair value $ 5,407 $ — $ — $ 5,407 In connection with our acquisition of Bluenica Corporation (“Bluenica”) in October 2015, we agreed to make contingent earn-out payments over a period of up to four years, subject to achieving specified revenue thresholds for sales of Bluenica products. To date, we have paid a total of $2.7 million for contingent consideration. The fair value of the remaining liability for the contingent consideration period was $3.3 million at December 31, 2019 . In connection our acquisition of TempAlert in October 2017, we agreed to make contingent earn-out payments for the twelve month periods ending December 31, 2018 and December 31, 2019 based on the total Digi IoT Solutions segment revenue. The fair value of the liability for contingent consideration was zero at December 31, 2019 . The earn-out period for this acquisition ended on December 31, 2019. In connection with our acquisition of Accelerated in January 2018, we agreed to make contingent earn-out payments if specified revenue thresholds for sales of Accelerated products were achieved. We made the first installment payment of $3.5 million in the third quarter of fiscal 2019. The fair value of the liability for contingent consideration for the acquisition of Accelerated 5. FAIR VALUE MEASUREMENTS (CONTINUED) was $2.3 million at December 31, 2019 . The earn-out period for this acquisition ended on January 22, 2020. In connection with our acquisition of Opengear, Inc., we agreed to make contingent payments, based upon certain revenue thresholds (see Note 2 to the condensed consolidated financial statements). The fair values of the liability for contingent consideration for the acquisition of Opengear was $9.1 million at December 31, 2019 . The following table presents a reconciliation of the contingent consideration liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands): Three months ended December 31, 2019 2018 Fair value at beginning of period $ 5,407 $ 10,065 Contingent consideration recognized for acquired business 9,100 — Contingent consideration payments — (161 ) Change in fair value of contingent consideration 259 243 Fair value at end of period $ 14,766 $ 10,147 The change in fair value of contingent consideration reflects our estimates of the probabilities of achieving the relevant targets and is discounted based on our estimated discount rate. We have estimated the fair value of the contingent consideration at December 31, 2019 based on the probability of achieving the specified revenue thresholds at 100% for Bluenica, 0% for TempAlert, 100% for Accelerated and 64% for Opengear. A significant change in our estimates of achieving any relevant target could materially change the fair value of the contingent consideration liability.

Goodwill and Other Identifiable

Goodwill and Other Identifiable Intangible Assets, Net	3 Months Ended
	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET	GOODWILL AND OTHER INTANGIBLE ASSETS, NET Amortizable intangible assets were (in thousands): December 31, 2019 September 30, 2019 Gross carrying amount Accum. amort. Net Gross carrying amount Accum. amort. Net Purchased and core technology $ 71,772 $ (52,097 ) $ 19,675 $ 57,699 $ (50,986 ) $ 6,713 License agreements 102 (81 ) 21 102 (74 ) 28 Patents and trademarks 22,636 (12,263 ) 10,373 14,577 (11,970 ) 2,607 Customer relationships 127,557 (26,893 ) 100,664 46,315 (25,266 ) 21,049 Non-compete agreements 600 (360 ) 240 600 (330 ) 270 Order backlog 1,800 (1,800 ) — 1,800 (1,800 ) — Total $ 224,467 $ (93,494 ) $ 130,973 $ 121,093 $ (90,426 ) $ 30,667 Amortization expense was $2.4 million and $2.5 million for the three month periods ended December 31, 2019 and 2018 , respectively. Amortization expense is recorded on our condensed consolidated statements of operations within cost of sales and in general and administrative expense. Estimated amortization expense related to intangible assets for the remainder of fiscal 2020 and the five succeeding fiscal years is (in thousands): 2020 (nine months) $ 12,029 2021 $ 15,210 2022 $ 14,366 2023 $ 12,167 2024 $ 11,464 2025 $ 8,007 6. GOODWILL AND OTHER INTANGIBLE ASSETS, NET (CONTINUED) The changes in the carrying amount of goodwill by reportable segments are (in thousands): Three months ended December 31, IoT Products and Services IoT Solutions Total Balance on September 30, 2019 $ 103,519 $ 49,903 $ 153,422 Acquisitions 60,479 — 60,479 Foreign currency translation adjustment 730 173 903 Balance at December 31, 2019 $ 164,728 $ 50,076 $ 214,804 Goodwill represents the excess of cost over the fair value of net identifiable assets acquired. Goodwill is tested for impairment on an annual basis as of June 30, or more frequently if events or circumstances occur which could indicate impairment. There were no triggering events identified for the three months ended December 31, 2019 . For our quantitative goodwill impairment tests, we determine the estimated fair value of each reporting unit and compare it to the carrying value of the reporting unit, including goodwill. If the carrying amount of a reporting unit is higher than its estimated fair value, then an impairment loss must be recognized for the excess. Both of our operating segments constitute separate reporting units and both units were tested individually for impairments. The fair value of each reporting unit is determined using a weighted combination of an income and market approach. A discounted cash flow (“DCF”) method is utilized for the income approach. In developing the discounted cash flow analysis, our assumptions about future revenues, expenses, capital expenditures, and changes in working capital are based on management’s projections, and assume a terminal growth rate thereafter. A separate discount rate is determined for each reporting unit and these cash flows are then discounted to determine the fair value of the reporting unit. The market approach determines a value derived from the guideline company method. This market approach method estimates the price reasonably expected to be realized from the sale of the reporting unit based on comparable companies. Assumptions and estimates to determine fair values under the income and market approaches are complex and often subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in our business strategy and our internal forecasts. If our future operating results do not meet current forecasts or if we experience a sustained decline in our market capitalization that is determined to be indicative of a reduction in fair value of one or more of our reporting units, we may be required to record future impairment charges for goodwill. Results of our Fiscal 2019 Annual Impairment Test As of June 30, 2019 , we had a total of $104.0 million of goodwill for the IoT Products & Services reporting unit and $50.0 million of goodwill for the IoT Solutions reporting unit. At June 30, 2019, fair value exceeded the carrying value by more than 10% for both reporting units. Implied fair values for both reporting units were each calculated on a standalone basis using a weighted combination of the income approach and market approach. The implied fair values of each reporting unit were added together to get an indicated value of total equity to which a range of indicated value of total equity was derived. This range was compared to the total market capitalization of $356.6 million as of June 30, 2019 , which implied a range of control premiums of 13.3% to 20.3% . This range of control premiums fell below the control premiums observed in the last five years in the communications equipment industry. As a result, the market capitalization reconciliation analysis proved support for the reasonableness of the fair values estimated for each individual reporting unit.

Sale of Building

Sale of Building	3 Months Ended
	Dec. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
SALE OF BUILDING	SALE OF BUILDING On October 2, 2018, we sold a 130,000 square feet building that served as our corporate headquarters in Minnetonka, Minnesota to Minnetonka Leased Housing Associates II, LLLP. The sale price was $10.0 million in cash adjusted for certain selling costs and an escrow for the leaseback of the building for four months. As a result of this sale, we recorded a gain of $4.4 million ( $3.4 million net of tax) in the first quarter of fiscal 2019, which was recorded in general and administrative expense.

Segment Information

Segment Information	3 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION We have two reportable operating segments: IoT Products & Services, and IoT Solutions. Summary operating results for each of our segments were (in thousands): Three months ended December 31, 2019 2018 Revenue IoT Products & Services $ 54,613 $ 53,294 IoT Solutions 7,704 9,019 Total revenue $ 62,317 $ 62,313 Operating (loss) income IoT Products & Services $ 2,388 $ 7,402 IoT Solutions (2,871 ) (1,844 ) Total operating (loss) income $ (483 ) $ 5,558 Depreciation and amortization IoT Products & Services $ 1,706 $ 1,942 IoT Solutions 1,911 1,731 Total depreciation and amortization $ 3,617 $ 3,673 Total expended for property, plant and equipment was (in thousands): Three months ended December 31, 2019 2018 Expended for property, equipment and improvements IoT Products & Services $ 190 $ 1,775 IoT Solutions* 6 — Total expended for property, plant and equipment $ 196 $ 1,775 * Excluded from this amount is $186 and $200 of transfers of inventory to property plant and equipment for subscriber assets for the three months ended December 31, 2019 and 2018, respectively. Total assets for each of our segments were (in thousands): December 31, 2019 September 30, Assets IoT Products & Services $ 415,843 $ 215,651 IoT Solutions 95,989 90,255 Unallocated* 49,072 92,792 Total assets $ 560,904 $ 398,698 *Unallocated consists of cash and cash equivalents and current marketable securities.

Revenue

Revenue	3 Months Ended
	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Revenue Disaggregation The following summarizes our revenue by geographic location of our customers: Three months ended December 31, ($ in thousands) 2019 2018 North America, primarily the United States $ 47,536 $ 46,335 Europe, Middle East & Africa 8,516 10,104 Rest of world 6,265 5,874 Total revenue $ 62,317 $ 62,313 9. REVENUE (CONTINUED) The following summarizes our revenue by the timing of revenue recognition: Three months ended December 31, ($ in thousands) 2019 2018 Transferred at a point in time $ 56,300 $ 57,463 Transferred over time 6,017 4,850 Total revenue $ 62,317 $ 62,313 Contract Balances Contract Assets Contract assets consist of subscriber assets. These subscriber assets relate to fees in certain contracts that we charge our customers so they can begin using equipment. In these cases, we retain the ownership of the equipment that the customer uses. The total net book value of subscriber assets of $2.0 million and $2.1 million as of December 31, 2019 and September 30, 2019 , respectively, are included in property, equipment and improvements, net. Depreciation expense for these subscriber assets, which is included in cost of sales, was $0.3 million and $0.2 million for the three month periods ended December 31, 2019 and December 31, 2018 , respectively. We depreciate the cost of this equipment over its useful life (typically three years ). Contract Liabilities The timing of revenue recognition may differ from the timing of invoicing to customers. Customers are invoiced for subscription services in advance on a monthly, quarterly or annual basis. Contract liabilities consist of unearned revenue related to annual or multi-year contracts for subscription services and related implementation fees for our IoT Solutions segment and our Digi Remote Manager ® services in our IoT Products & Services segment. Changes in unearned revenue were: ($ in thousands) Three months ended Unearned revenue, beginning of period $ 5,025 Billings 9,847 Revenue recognized (8,070 ) Unearned revenue, end of period $ 6,802 Remaining Transaction Price Transaction price allocated to the remaining performance obligations represents contracted revenue that has not been recognized. This includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. As of December 31, 2019 approximately $13.2 million of revenue is expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize revenue on approximately $8.4 million of remaining performance obligations over the next twelve months. Revenue from the remaining performance obligations we expect to recognize over a range of two to seven years.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Our income tax benefit was $1.1 million for the three months ended December 31, 2019 . Included in this benefit was a net tax benefit discretely related to the three months ended December 31, 2019 of $1.0 million . This benefit primarily was the result of excess tax benefits recognized on stock compensation and an adjustment of our state deferred tax rate due to the Opengear acquisition. For the three months ended December 31, 2019 , our effective tax rate before items discretely related to the period was less than the U.S. statutory rate due primarily to certain income tax credits generated in the U.S. Income tax expense was $1.0 million for the three months ended December 31, 2018 . Included in this expense was a net tax benefit discretely related to the three months ended December 31, 2018 of $0.1 million . This expense primarily was the result of expiring statute of limitations of uncertain tax benefits as well as excess tax benefits recognized on stock compensation. For the three months ended December 31, 2018 , our effective tax rate before items discretely related to the period was less than the U.S. statutory rate primarily due to certain income tax credits generated in the U.S. 10. INCOME TAXES (CONTINUED) Our effective tax rate will vary based on a variety of factors. These include our overall profitability, the geographical mix of income before taxes and related statutory tax rate in each jurisdiction, and tax items discretely related to the period, such as settlements of audits. 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 in 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, 2019 $ 1,713 Decreases related to: Settlements (7 ) Expiration of statute of limitations (39 ) Unrecognized tax benefits as of December 31, 2019 $ 1,667 The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate is $1.5 million , after considering the impact of interest and deferred benefit items. We expect that the total amount of unrecognized tax benefits will decrease by approximately $0.3 million over the next 12 months.

Product Warranty Obligation

Product Warranty Obligation	3 Months Ended
	Dec. 31, 2019
Product Warranties Disclosures [Abstract]
PRODUCT WARRANTY OBLIGATION	PRODUCT WARRANTY OBLIGATION The following table summarizes the activity associated with the product warranty accrual (in thousands) and is 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, 2019 $ 1,012 $ 74 $ (87 ) $ 999 Three months ended December 31, 2018 $ 1,172 $ 72 $ (104 ) $ 1,140

Leases

Leases	3 Months Ended
	Dec. 31, 2019
Leases [Abstract]
LEASES	LEASES Our leases primarily consist of operating leases for office space. All of our leases are operating leases. For any lease with an initial term in excess of twelve months, the related lease assets and lease liabilities are recognized on the condensed consolidated balance sheets as either operating or financing leases at the inception of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components, and we have elected to combine lease and non-lease components for all classes of assets. Leases with an initial term of twelve months or less are not recorded on the condensed consolidated balance sheets. Instead we recognize lease expense for these leases on a straight-line basis over the lease term. Operating lease assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments. These assets and liabilities are recognized based on the present value of future payments over the lease term at the commencement date. We generally use a collateralized incremental borrowing rate based on information available at the commencement date, including the lease term, in determining the present value of future payments. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Our leases typically require payment of real estate taxes and common area maintenance and insurance. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term. 12. LEASES (CONTINUED) The following table shows the supplemental balance sheet information related to our leases (in thousands): Balance Sheet Location December 31, 2019 Assets Operating leases Other non-current assets $ 15,041 Total lease assets $ 15,041 Liabilities Operating leases Other current liabilities $ 1,926 Operating leases Other non-current liabilities 17,483 Total lease liabilities $ 19,409 Components of our lease cost were as follows (in thousands): Statement of Operations Location Three months ended Operating lease cost Cost of goods sold and SG&A $ 852 Variable lease cost Cost of goods sold and SG&A 23 Total lease cost $ 875 The following table below presents supplemental information related to operating leases (in thousands): Three months ended Cash paid for amounts included in the measurement of operating lease liabilities $ 416 Right-of-use assets obtained in exchange for new operating lease liabilities $ — December 31, 2019 Weighted average remaining lease term - operating leases 8.0 years Weighted average discount rate - operating leases 4.50% The table below reconciles the undiscounted cash flows for each of the first five years as well as all the remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet as of December 31, 2019 (in thousands): Fiscal year Amount Remainder of 2020 $ 2,296 2021 3,070 2022 2,732 2023 2,420 2024 2,150 2025 2,142 Thereafter 9,219 Total future undiscounted lease payments 24,029 Less imputed interest (4,620 ) Total reported lease liability $ 19,409 12. LEASES (CONTINUED) As follows, aggregate annual future minimum rental commitments under operating leases with noncancelable terms of more than one year at September 30, 2019 were reported under previous lease accounting standards (in thousands): Fiscal year Amount 2020 $ 2,596 2021 2,575 2022 2,314 2023 2,056 2024 2,095 Thereafter 11,361 Total minimum payments required $ 22,997

Debt Debt

Debt Debt	3 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
DEBT	DEBT In connection with our acquisition of Opengear, we entered into a syndicated credit agreement with BMO Harris Bank N.A. (“BMO”) on December 13, 2019. This agreement provided us with committed credit facilities (the “Credit Facility”) totaling $150 million , consisting of (i) a $50 million term loan (the “Term Loan”) and (ii) a $100 million revolving loan (the “Revolving Loan”). Borrowings under the Credit Facility bear interest rates based on an underlying variable benchmark plus applicable margin based on our total leverage. Interest rates for both the Term Loan and Revolving Loan reset quarterly. Our weighted average interest rate for the three months ended December 31, 2019 was 4.5% . In addition to paying interest on the outstanding balance under the Credit Facility, we are required to pay a commitment fee on the non-utilized commitments thereunder. We also incurred debt issuance costs under the Credit Facility of $2.6 million in the first quarter of fiscal 2020, which is being amortized using the straight-line method over the term of the loan. Both the commitment fee and the amortization costs of the debt issuance costs are reported in interest expense. Amounts under the Term Loan will be repaid in quarterly installments on the last day of each fiscal quarter, with amortization of 5% in the first two years, 7.5% in the next two years and 10% in the final year. The remaining outstanding balance will mature on December 13, 2024. The Revolving Loan is due in a lump sum payment at maturity on December 13, 2024. Our Term Loan and Revolving Loan contains two financial covenants that require us to stay below a maximum debt-to-earnings before interest, taxes, depreciation and amortization (“EBITDA”) ratio and maintain a minimum ratio of interest expense-to-EBITDA. Both ratios are computed quarterly, with EBITDA calculated on a rolling four-quarter basis. The fair values of the Term Loan and Revolving Loan approximated carrying value at December 31, 2019 , due to the variable interest rates on these instruments. The following table is a summary of our long-term indebtedness at December 31, 2019 (in thousands): Revolving loan $ 60,000 Term loan 50,000 Total loans 110,000 Less unamortized issuance costs (2,558 ) Less current maturities of long-term debt (1,972 ) Total long-term debt, net of current portion $ 105,470 Covenants and Security Interest The agreements governing the Credit Facility contain a number of covenants that, among other things, require us to maintain a certain financial ratio (net leverage ratio and minimum fixed charge ratio). At December 31, 2019 , we were in compliance with these debt covenants. Amounts borrowed under the Credit Facility are secured by substantially all of our assets.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	CONTINGENCIES Contingencies In November 2018, DimOnOff Inc., a company headquartered in Quebec City, Quebec, Canada (“DimOnOff”), which sells control systems in the building automation and street lighting markets sued us and a former distributor from whom DimOnOff purchased certain of our products. The suit was brought in the Superior Court of the Province of Quebec in the District of Quebec (Canada) and alleges certain Digi products it purchased and incorporated into street lighting systems in a Canadian city were defective causing some of the street lights to malfunction. It alleges damages of just over CAD 1.0 million . We intend to defend ourselves against DimOnOff’s claims. At this time we cannot assess the likelihood or amount of any potential loss. In addition to the matter discussed above, in the normal course of business, we are subject to various claims and litigation. There can be no assurance that any claims by third parties, if proven to have merit, will not materially adversely affect our business, liquidity or financial condition.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Stock-based awards were granted under the 2019 Omnibus Incentive Plan (the “2019 Plan”) beginning February 4, 2019, prior to that date such awards made in fiscal 2019 were granted under the 2018 Omnibus Incentive Plan (the “2018 Plan”). Upon stockholder approval of the 2019 Plan, we ceased granting awards under the 2018 Plan. Shares subject to awards under the 2018 Plan or any prior plans that are forfeited, canceled, returned to us for failure to satisfy vesting requirements, settled in cash or otherwise terminated without payment also will be available for grant under the 2019 Plan. The authority to grant options under the 2019 Plan and to set other terms and conditions rests with the Compensation Committee of the Board of Directors. The 2019 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 2019 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 January over a four -year period. The 2019 Plan is scheduled to expire on February 3, 2029. Options under the 2019 Plan can be granted as either incentive stock options or non-statutory stock options. The exercise price of options and the grant date price of RSUs is determined by our Compensation Committee but will not be less than the fair market value of our common stock based on the closing price as of the date of grant. Upon exercise of options or settlement of vested restricted stock units, we issue new shares of stock. As of December 31, 2019 , there were approximately 628,921 shares available for future grants under the 2019 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, 2019 and 2018 , our employees forfeited 88,723 shares and 83,988 shares, respectively, in order to satisfy respective withholding tax obligations of $1.6 million and $1.0 million . Employee contributions to the Employee Stock Purchase Plan (the “ESPP”) were $0.3 million for both the three month periods ended December 31, 2019 and 2018 . Pursuant to the ESPP, 24,738 and 33,706 common shares were issued to employees during the three months ended December 31, 2019 and 2018 , respectively. Shares are issued under the ESPP from treasury stock. As of December 31, 2019 , 179,802 common shares were available for future issuances under the ESPP. 15. STOCK-BASED COMPENSATION (CONTINUED) As follows, stock-based compensation expense is included in the consolidated results of operations (in thousands): Three months ended December 31, 2019 2018 Cost of sales $ 64 $ 55 Sales and marketing 431 353 Research and development 294 200 General and administrative 811 806 Stock-based compensation before income taxes 1,600 1,414 Income tax benefit (332 ) (294 ) Stock-based compensation after income taxes $ 1,268 $ 1,120 Stock Options 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, 2019 3,348 $10.85 Granted 594 17.71 Exercised (404 ) 10.31 Forfeited / Canceled (35 ) 11.27 Balance at December 31, 2019 3,503 $12.08 4.5 $ 19,868 Exercisable at December 31, 2019 2,015 $10.58 3.4 $ 14,378 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $17.72 as of December 31, 2019 , 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, 2019 was $3.0 million and during the three months ended December 31, 2018 was $0.3 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, 2019 2018 Weighted average per option grant date fair value $6.56 $4.36 Assumptions used for option grants: Risk free interest rate 1.67% - 1.73% 2.78% - 2.93% Expected term 6.00 years 6.00 years Expected volatility 36% 33% Weighted average volatility 36% 33% 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 above table. 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. 15. STOCK-BASED COMPENSATION (CONTINUED) As of December 31, 2019 , the total unrecognized compensation cost related to non-vested stock options was $7.5 million and the related weighted average period over which it is expected to be recognized is approximately 3.2 years. Non-vested Restricted Stock Units The table below presents a summary of our non-vested restricted stock units as of December 31, 2019 and changes during the three months then ended (in thousands, except per common share amounts): Number of Awards Weighted Average Grant Date Fair Value Nonvested at September 30, 2019 888 $ 11.65 Granted 240 $ 17.67 Vested (214 ) $ 11.53 Canceled (28 ) $ 11.04 Nonvested at December 31, 2019 886 $ 13.33 As of December 31, 2019 , the total unrecognized compensation cost related to non-vested restricted stock units was $10.5 million . The related weighted average period over which this cost is expected to be recognized is approximately 1.8 years.

Basis of Presentation of Unau_2

Basis of Presentation of Unaudited Interim Condensed Consolidated Financial Statements and Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , which provides for comprehensive changes to lease accounting. The standard requires that a lessee recognize a lease obligation liability and a right-to-use asset for virtually all leases, subsequently amortized over the lease term. We adopted this standard in the first quarter of fiscal 2020, following the modified retrospective application approach by applying the new standard to all applicable leases existing at the date of initial application and not restating comparative periods. We are substantially complete with our implementation efforts. These efforts have included identification and analysis of our lease portfolio, analysis and evaluation of the new reporting and disclosure requirements of the new guidance, and an evaluation of our lease-related processes and internal controls. The adoption of this standard resulted in the recognition of a right-of-use asset included in other non-current assets of approximately $14.1 million and a lease liability of approximately $17.9 million included in other current liabilities and other non-current liabilities on our condensed consolidated balance sheet in the first quarter of fiscal 2020. In adopting the new standard, we elected the package of practical expedients permitted under the transition guidance, as well as the practical expedient not to separate non-lease components from lease components. We also elected the practical expedient to use hindsight in determining the lease term when considering options to extend or terminate a lease, options to purchase the underlying asset, and in assessing the impairment of right-of-use assets. The adoption of this standard did not have a significant impact on our condensed consolidated results of operations or condensed consolidated statements of cash flows. We have identified new and updated existing internal controls and processes to support measurement, recognition and disclosure under this new standard, but such changes were not deemed to be material to our overall system of internal control over financial reporting. Not Yet Adopted In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance improves the disclosure requirements on fair value measurements. The updated guidance is effective for us in the first quarter ending December 31, 2020. Early adoption is permitted for any removed or modified disclosures. We are evaluating when to adopt, and the impact of adopting, ASU 2018-13 on our consolidated financial statements. In June 2016, 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 U.S. 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 us in the first quarter ending December 31, 2020. Entities may early adopt beginning after December 15, 2018. We are evaluating the impact of adopting ASU 2016-13 on our consolidated financial statements.

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Dec. 31, 2019
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	The following table summarizes the preliminary values of Opengear assets acquired and liabilities assumed as of the acquisition date (in thousands): Cash $ 148,058 Contingent consideration 9,100 Total $ 157,158 Fair value of net tangible assets acquired $ 19,032 Identifiable intangible assets: Customer relationships 81,000 Purchased and core technology 13,700 Trademarks 8,000 Deferred tax liability on identifiable intangible assets (25,053 ) Goodwill 60,479 Total $ 157,158
Business Acquisition, Pro Forma Information [Table Text Block]	The following consolidated pro forma information is presented as if the acquisition had occurred on October 1, 2018 (in thousands): Three months ended December 31, 2019 2018 Net sales $ 77,213 $ 75,667 Net income $ 3,499 $ 3,141 Net income per share - basic $ 0.12 $ 0.11 Net income per share - diluted $ 0.12 $ 0.11

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Dec. 31, 2019
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, 2019 2018 Numerator: Net income $ 208 $ 4,682 Denominator: Denominator for basic net income per common share — weighted average shares outstanding 28,467 27,513 Effect of dilutive securities: Stock options and restricted stock units 1,147 562 Denominator for diluted net income per common share — adjusted weighted average shares 29,614 28,075 Net income per common share, basic $ 0.01 $ 0.17 Net income per common share, diluted $ 0.01 $ 0.17

Selected Balance Sheet Data (Ta

Selected Balance Sheet Data (Tables)	3 Months Ended
	Dec. 31, 2019
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, 2019 Accounts receivable, net: Accounts receivable $ 85,004 $ 60,062 Less allowance for doubtful accounts 940 968 Less reserve for future returns and pricing adjustments 2,967 2,677 Accounts receivable, net $ 81,097 $ 56,417 Inventories: Raw materials $ 17,149 $ 12,308 Work in process — 565 Finished goods 30,231 26,891 Inventories $ 47,380 $ 39,764

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Dec. 31, 2019
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 Fair Value at Fair Value Measurements Using Inputs Considered as December 31, 2019 Level 1 Level 2 Level 3 Liabilities: Contingent consideration on acquired businesses $ 14,766 $ — $ — $ 14,766 Total liabilities measured at fair value $ 14,766 $ — $ — $ 14,766 Total Fair Value at Fair Value Measurements Using Inputs Considered as September 30, 2019 Level 1 Level 2 Level 3 Assets: Money market $ 56,700 $ 56,700 $ — $ — Total assets measured at fair value $ 56,700 $ 56,700 $ — $ — Liabilities: Contingent consideration on acquired businesses $ 5,407 $ — $ — $ 5,407 Total liabilities measured at fair value $ 5,407 $ — $ — $ 5,407
Fair Value of Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	The following table presents a reconciliation of the contingent consideration liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands): Three months ended December 31, 2019 2018 Fair value at beginning of period $ 5,407 $ 10,065 Contingent consideration recognized for acquired business 9,100 — Contingent consideration payments — (161 ) Change in fair value of contingent consideration 259 243 Fair value at end of period $ 14,766 $ 10,147

Goodwill and Other Identifiab_2

Goodwill and Other Identifiable Intangible Assets, Net (Tables)	3 Months Ended
	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Amortizable Intangible Assets	Amortizable intangible assets were (in thousands): December 31, 2019 September 30, 2019 Gross carrying amount Accum. amort. Net Gross carrying amount Accum. amort. Net Purchased and core technology $ 71,772 $ (52,097 ) $ 19,675 $ 57,699 $ (50,986 ) $ 6,713 License agreements 102 (81 ) 21 102 (74 ) 28 Patents and trademarks 22,636 (12,263 ) 10,373 14,577 (11,970 ) 2,607 Customer relationships 127,557 (26,893 ) 100,664 46,315 (25,266 ) 21,049 Non-compete agreements 600 (360 ) 240 600 (330 ) 270 Order backlog 1,800 (1,800 ) — 1,800 (1,800 ) — Total $ 224,467 $ (93,494 ) $ 130,973 $ 121,093 $ (90,426 ) $ 30,667
Schedule of Estimated Future Amortization Expense Related to Intangible Assets	Estimated amortization expense related to intangible assets for the remainder of fiscal 2020 and the five succeeding fiscal years is (in thousands): 2020 (nine months) $ 12,029 2021 $ 15,210 2022 $ 14,366 2023 $ 12,167 2024 $ 11,464 2025 $ 8,007
Schedule of Changes in Carrying Amount of Goodwill	The changes in the carrying amount of goodwill by reportable segments are (in thousands): Three months ended December 31, IoT Products and Services IoT Solutions Total Balance on September 30, 2019 $ 103,519 $ 49,903 $ 153,422 Acquisitions 60,479 — 60,479 Foreign currency translation adjustment 730 173 903 Balance at December 31, 2019 $ 164,728 $ 50,076 $ 214,804

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Summary operating results for each of our segments were (in thousands): Three months ended December 31, 2019 2018 Revenue IoT Products & Services $ 54,613 $ 53,294 IoT Solutions 7,704 9,019 Total revenue $ 62,317 $ 62,313 Operating (loss) income IoT Products & Services $ 2,388 $ 7,402 IoT Solutions (2,871 ) (1,844 ) Total operating (loss) income $ (483 ) $ 5,558 Depreciation and amortization IoT Products & Services $ 1,706 $ 1,942 IoT Solutions 1,911 1,731 Total depreciation and amortization $ 3,617 $ 3,673
Payments to Acquire Property, Plant and Equipment by Segment	Total expended for property, plant and equipment was (in thousands): Three months ended December 31, 2019 2018 Expended for property, equipment and improvements IoT Products & Services $ 190 $ 1,775 IoT Solutions* 6 — Total expended for property, plant and equipment $ 196 $ 1,775 * Excluded from this amount is $186 and $200 of transfers of inventory to property plant and equipment for subscriber assets for the three months ended December 31, 2019 and 2018, respectively.
Reconciliation of Assets from Segment to Consolidated	Total assets for each of our segments were (in thousands): December 31, 2019 September 30, Assets IoT Products & Services $ 415,843 $ 215,651 IoT Solutions 95,989 90,255 Unallocated* 49,072 92,792 Total assets $ 560,904 $ 398,698 *Unallocated consists of cash and cash equivalents and current marketable securities.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following summarizes our revenue by geographic location of our customers: Three months ended December 31, ($ in thousands) 2019 2018 North America, primarily the United States $ 47,536 $ 46,335 Europe, Middle East & Africa 8,516 10,104 Rest of world 6,265 5,874 Total revenue $ 62,317 $ 62,313 9. REVENUE (CONTINUED) The following summarizes our revenue by the timing of revenue recognition: Three months ended December 31, ($ in thousands) 2019 2018 Transferred at a point in time $ 56,300 $ 57,463 Transferred over time 6,017 4,850 Total revenue $ 62,317 $ 62,313
Contract with Customer, Asset and Liability	Changes in unearned revenue were: ($ in thousands) Three months ended Unearned revenue, beginning of period $ 5,025 Billings 9,847 Revenue recognized (8,070 ) Unearned revenue, end of period $ 6,802

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Dec. 31, 2019
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, 2019 $ 1,713 Decreases related to: Settlements (7 ) Expiration of statute of limitations (39 ) Unrecognized tax benefits as of December 31, 2019 $ 1,667

Product Warranty Obligation (Ta

Product Warranty Obligation (Tables)	3 Months Ended
	Dec. 31, 2019
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, 2019 $ 1,012 $ 74 $ (87 ) $ 999 Three months ended December 31, 2018 $ 1,172 $ 72 $ (104 ) $ 1,140

Leases (Tables)

Leases (Tables)	3 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Supplemental Balance Sheet Information	The following table shows the supplemental balance sheet information related to our leases (in thousands): Balance Sheet Location December 31, 2019 Assets Operating leases Other non-current assets $ 15,041 Total lease assets $ 15,041 Liabilities Operating leases Other current liabilities $ 1,926 Operating leases Other non-current liabilities 17,483 Total lease liabilities $ 19,409
Components of Lease Cost	Components of our lease cost were as follows (in thousands): Statement of Operations Location Three months ended Operating lease cost Cost of goods sold and SG&A $ 852 Variable lease cost Cost of goods sold and SG&A 23 Total lease cost $ 875
Supplemental Disclosures Leases	The following table below presents supplemental information related to operating leases (in thousands): Three months ended Cash paid for amounts included in the measurement of operating lease liabilities $ 416 Right-of-use assets obtained in exchange for new operating lease liabilities $ — December 31, 2019 Weighted average remaining lease term - operating leases 8.0 years Weighted average discount rate - operating leases 4.50%
Operating Lease Liability Maturity	The table below reconciles the undiscounted cash flows for each of the first five years as well as all the remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet as of December 31, 2019 (in thousands): Fiscal year Amount Remainder of 2020 $ 2,296 2021 3,070 2022 2,732 2023 2,420 2024 2,150 2025 2,142 Thereafter 9,219 Total future undiscounted lease payments 24,029 Less imputed interest (4,620 ) Total reported lease liability $ 19,409
Schedule of Future Minimum Rental Payments for Operating Leases	As follows, aggregate annual future minimum rental commitments under operating leases with noncancelable terms of more than one year at September 30, 2019 were reported under previous lease accounting standards (in thousands): Fiscal year Amount 2020 $ 2,596 2021 2,575 2022 2,314 2023 2,056 2024 2,095 Thereafter 11,361 Total minimum payments required $ 22,997

Debt (Tables)

Debt (Tables)	3 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Schedule of Debt [Table Text Block]	The following table is a summary of our long-term indebtedness at December 31, 2019 (in thousands): Revolving loan $ 60,000 Term loan 50,000 Total loans 110,000 Less unamortized issuance costs (2,558 ) Less current maturities of long-term debt (1,972 ) Total long-term debt, net of current portion $ 105,470

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Schedule of Stock-Based Compensation Expense	As follows, stock-based compensation expense is included in the consolidated results of operations (in thousands): Three months ended December 31, 2019 2018 Cost of sales $ 64 $ 55 Sales and marketing 431 353 Research and development 294 200 General and administrative 811 806 Stock-based compensation before income taxes 1,600 1,414 Income tax benefit (332 ) (294 ) Stock-based compensation after income taxes $ 1,268 $ 1,120
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, 2019 3,348 $10.85 Granted 594 17.71 Exercised (404 ) 10.31 Forfeited / Canceled (35 ) 11.27 Balance at December 31, 2019 3,503 $12.08 4.5 $ 19,868 Exercisable at December 31, 2019 2,015 $10.58 3.4 $ 14,378 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $17.72 as of December 31, 2019 , 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, 2019 2018 Weighted average per option grant date fair value $6.56 $4.36 Assumptions used for option grants: Risk free interest rate 1.67% - 1.73% 2.78% - 2.93% Expected term 6.00 years 6.00 years Expected volatility 36% 33% Weighted average volatility 36% 33% Expected dividend yield 0 0
Schedule of Nonvested Restricted Stock Units	The table below presents a summary of our non-vested restricted stock units as of December 31, 2019 and changes during the three months then ended (in thousands, except per common share amounts): Number of Awards Weighted Average Grant Date Fair Value Nonvested at September 30, 2019 888 $ 11.65 Granted 240 $ 17.67 Vested (214 ) $ 11.53 Canceled (28 ) $ 11.04 Nonvested at December 31, 2019 886 $ 13.33

Basis of Presentation of Unau_3

Basis of Presentation of Unaudited Interim Condensed Consolidated Financial Statements and Significant Accounting Policies ASC 842 adoption (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Oct. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use asset	$ 15,041
Operating lease liability	$ 17,483
Other non-current assets | ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use asset		$ 14,100
Other current and non-current liabilities | ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease liability		$ 17,900

Acquisitions Details (Details)

Acquisitions Details (Details) - USD ($) $ in Thousands	Dec. 13, 2019	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2020
Business Acquisition [Line Items]
Operating lease right-of-use asset		$ 15,041
Operating lease liability		17,483
Opengear
Business Acquisition [Line Items]
Cash paid at closing	$ 148,058
Weighted average useful life identifiable intangibles	13 years 7 months 6 days
Opengear | General and Administrative
Business Acquisition [Line Items]
Acquisition costs		1,900	$ 300
Earn-Out Payments | Maximum | Opengear
Business Acquisition [Line Items]
Earn-out payment maximum		$ 5,000
Earn-Out Payments | Maximum | Forecast | Opengear
Business Acquisition [Line Items]
Earn-out payment maximum				$ 10,000
Customer Relationships | Opengear
Business Acquisition [Line Items]
Useful life identifiable intangibles	14 years 6 months
Purchased and Core Technology | Opengear
Business Acquisition [Line Items]
Useful life identifiable intangibles	9 years
Trademarks | Opengear
Business Acquisition [Line Items]
Useful life identifiable intangibles	12 years
Other non-current assets | Opengear
Business Acquisition [Line Items]
Operating lease right-of-use asset	$ 1,400
Other current and non-current liabilities | Opengear
Business Acquisition [Line Items]
Operating lease liability	$ 1,700

Acquisitions (Assets Acquired a

Acquisitions (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands	Dec. 13, 2019	Dec. 31, 2019	Sep. 30, 2019
Business Acquisition [Line Items]
Goodwill		$ 214,804	$ 153,422
Opengear
Business Acquisition [Line Items]
Cash	$ 148,058
Contingent consideration	9,100
Total consideration transferred	157,158
Fair value of net tangible assets acquired	19,032
Deferred tax liability on identifiable intangible assets	(25,053)
Goodwill	60,479
Total assets acquired and liabilities assumed	157,158
Customer Relationships | Opengear
Business Acquisition [Line Items]
Identifiable intangible assets	81,000
Purchased and Core Technology | Opengear
Business Acquisition [Line Items]
Identifiable intangible assets	13,700
Trademarks | Opengear
Business Acquisition [Line Items]
Identifiable intangible assets	$ 8,000

Acquisitions Supplemental Pro F

Acquisitions Supplemental Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Opengear
Business Acquisition [Line Items]
Net sales	$ 77,213	$ 75,667
Net income	$ 3,499	$ 3,141
Net income per share - basic	$ 0.12	$ 0.11
Net income per share - diluted	$ 0.12	$ 0.11
Acquisition-related costs
Business Acquisition [Line Items]
Acquisition-related costs		$ 2,300

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Numerator:
Net income	$ 208	$ 4,682
Denominator:
Denominator for basic net income (loss) per common share — weighted average shares outstanding	28,467,000	27,513,000
Effect of dilutive securities:
Stock options and restricted stock units	1,147,000	562,000
Denominator for diluted net income (loss) per common share — adjusted weighted average shares	29,614,000	28,075,000
Basic net income per common share:
Net income, basic (USD per share)	$ 0.01	$ 0.17
Diluted net income per common share
Net income, diluted (USD per share)	$ 0.01	$ 0.17
Potentially dilutive securities excluded from computation of earnings per share	594,447	1,241,964

Selected Balance Sheet Data (De

Selected Balance Sheet Data (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Accounts receivable, net:
Accounts receivable	$ 85,004	$ 60,062
Less allowance for doubtful accounts	940	968
Less reserve for future returns and pricing adjustments	2,967	2,677
Accounts receivable, net	81,097	56,417
Inventories:
Raw materials	17,149	12,308
Work in process	0	565
Finished goods	30,231	26,891
Inventories	$ 47,380	$ 39,764

Fair Value Measurements (Financ

Fair Value Measurements (Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
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		$ 56,700
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		0
Total liabilities measured at fair value	0	0
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration fair value	14,766	5,407	$ 10,147	$ 10,065
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
Total liabilities measured at fair value	14,766	5,407
Contingent Consideration | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration fair value	0	0
Contingent Consideration | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration fair value	0	0
Contingent Consideration | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration fair value	14,766	5,407
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		56,700
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
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
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		56,700
Total liabilities measured at fair value	14,766	5,407
Estimate of Fair Value Measurement | Contingent Consideration | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration fair value	$ 14,766	5,407
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		$ 56,700

Fair Value Measurements (Reconc

Fair Value Measurements (Reconciliation of Liability) (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at beginning of period	$ 5,407	$ 10,065
Purchase price contingent consideration	9,100	0
Contingent consideration payments	0	(161)
Change in fair value of contingent consideration	259	243
Fair value at end of period	$ 14,766	$ 10,147

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	Oct. 05, 2015	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 13, 2019	Sep. 30, 2019	Sep. 30, 2018
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Payment for contingent consideration		$ 259,000		$ 243,000
Fair Value, Inputs, Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value		14,766,000		$ 10,147,000	$ 14,766,000		$ 5,407,000	$ 10,065,000
Contingent Consideration | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value		0			0		0
Contingent Consideration | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value		0			0		0
Contingent Consideration | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value		$ 14,766,000			14,766,000		5,407,000
Bluenica Corporation
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Earn-out payment installment period	4 years
Bluenica Corporation | Maximum | Fair Value, Inputs, Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value inputs probability of payment		100.00%
Bluenica Corporation | Contingent Consideration
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Payment for contingent consideration					2,700,000
TempAlert | Maximum | Fair Value, Inputs, Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value inputs probability of payment		0.00%
Accelerated | Maximum | Fair Value, Inputs, Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value inputs probability of payment		100.00%
Accelerated | Contingent Consideration
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Payment for contingent consideration			$ 3,500,000
Opengear | Maximum | Fair Value, Inputs, Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value inputs probability of payment		64.00%
Estimate of Fair Value Measurement | Contingent Consideration | Fair Value, Measurements, Recurring
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value		$ 14,766,000			14,766,000		$ 5,407,000
Estimate of Fair Value Measurement | Bluenica Corporation | Contingent Consideration | Fair Value, Measurements, Recurring
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value		3,300,000			3,300,000
Estimate of Fair Value Measurement | TempAlert | Contingent Consideration | Fair Value, Measurements, Recurring
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value		0			0
Estimate of Fair Value Measurement | Accelerated | Contingent Consideration | Fair Value, Measurements, Recurring
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value		2,300,000			2,300,000
Estimate of Fair Value Measurement | Opengear | Contingent Consideration | Fair Value, Measurements, Recurring
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value		$ 9,100,000			$ 9,100,000	$ 9,100,000

Goodwill and Other Identifiab_3

Goodwill and Other Identifiable Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 224,467		$ 121,093
Accumulated amortization	(93,494)		(90,426)
Net	130,973		30,667
Amortization expense	2,448	$ 2,540
Purchased and Core Technology
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	71,772		57,699
Accumulated amortization	(52,097)		(50,986)
Net	19,675		6,713
License Agreements
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	102		102
Accumulated amortization	(81)		(74)
Net	21		28
Patents and Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	22,636		14,577
Accumulated amortization	(12,263)		(11,970)
Net	10,373		2,607
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	127,557		46,315
Accumulated amortization	(26,893)		(25,266)
Net	100,664		21,049
Non-compete Agreements
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	600		600
Accumulated amortization	(360)		(330)
Net	240		270
Order backlog
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	1,800		1,800
Accumulated amortization	(1,800)		(1,800)
Net	0		$ 0
Cost of Sales and General and Administrative Expense
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 2,448	$ 2,540

Goodwill and Other Identifiab_4

Goodwill and Other Identifiable Intangible Assets, Net (Additional Information) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019
Goodwill [Line Items]
Goodwill	$ 214,804	$ 153,422
Market Capitalization			$ 356,600
IoT Products & Services Segment
Goodwill [Line Items]
Goodwill	164,728	103,519	104,000
IoT Solutions Segment
Goodwill [Line Items]
Goodwill	$ 50,076	$ 49,903	$ 50,000
Measurement Input, Control Premium [Member] | Minimum
Goodwill [Line Items]
Goodwill Valuation Implied Control Premium			13.30%
Measurement Input, Control Premium [Member] | Maximum
Goodwill [Line Items]
Goodwill Valuation Implied Control Premium			20.30%

Goodwill and Other Identifiab_5

Goodwill and Other Identifiable Intangible Assets, Net (Amortization Expense) (Details) $ in Thousands	Dec. 31, 2019USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2020 (nine months)	$ 12,029
2021	15,210
2022	14,366
2023	12,167
2024	11,464
2025	$ 8,007

Goodwill and Other Identifiab_6

Goodwill and Other Identifiable Intangible Assets, Net (Goodwill Rollforward) (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2019USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 153,422
Acquisitions	60,479
Foreign currency translation adjustment	903
Ending balance	214,804
IoT Solutions Segment
Goodwill [Roll Forward]
Beginning balance	49,903
Acquisitions	0
Foreign currency translation adjustment	173
Ending balance	50,076
IoT Products & Services Segment
Goodwill [Roll Forward]
Beginning balance	103,519
Acquisitions	60,479
Foreign currency translation adjustment	730
Ending balance	$ 164,728

Sale of Building (Details)

Sale of Building (Details) $ in Thousands	Oct. 02, 2018USD ($)ft²	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale		$ 0	$ 4,396
Minnetonka, MN
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Area of real estate sold (in sqft) | ft²	130,000
Proceeds from sale of buildings	$ 10,000
Gain on sale			4,400
Gain on sale, net of deferred tax			$ 3,400

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2019USD ($)segment	Dec. 31, 2018USD ($)
Segment Reporting Information [Line Items]
Number of Reportable Segments | segment	2
Total Revenue	$ 62,317	$ 62,313
Operating (loss) income	(483)	5,558
Depreciation and amortization	3,617	3,673
IoT Products & Services Segment
Segment Reporting Information [Line Items]
Total Revenue	54,613	53,294
Operating (loss) income	2,388	7,402
Depreciation and amortization	1,706	1,942
IoT Solutions Segment
Segment Reporting Information [Line Items]
Total Revenue	7,704	9,019
Operating (loss) income	(2,871)	(1,844)
Depreciation and amortization	$ 1,911	$ 1,731

Segment Information Expended fo

Segment Information Expended for Property, Plant and Equipment (Details) - USD ($) $ in Thousands		3 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Expended of property, equipment, improvements and certain other intangible assets		$ 196	$ 1,775
IoT Products & Services Segment
Segment Reporting Information [Line Items]
Expended of property, equipment, improvements and certain other intangible assets		190	1,775
IoT Solutions Segment
Segment Reporting Information [Line Items]
Expended of property, equipment, improvements and certain other intangible assets	[1]	$ 6	$ 0
[1]	* Excluded from this amount is $186 and $200 of transfers of inventory to property plant and equipment for subscriber assets for the three months ended December 31, 2019 and 2018, respectively.

Segment Information Total Asset

Segment Information Total Assets (Details) - USD ($) $ in Thousands		Dec. 31, 2019	Sep. 30, 2019
Segment Reporting, Asset Reconciling Item [Line Items]
Assets		$ 560,904	$ 398,698
IoT Products & Services Segment
Segment Reporting, Asset Reconciling Item [Line Items]
Assets		415,843	215,651
IoT Solutions Segment
Segment Reporting, Asset Reconciling Item [Line Items]
Assets		95,989	90,255
Unallocated
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	[1]	$ 49,072	$ 92,792
[1]	Unallocated consists of cash and cash equivalents and current marketable securities.

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Total Revenue	$ 62,317	$ 62,313
North America, primarily the United States
Disaggregation of Revenue [Line Items]
Total Revenue	47,536	46,335
Europe, Middle East & Africa
Disaggregation of Revenue [Line Items]
Total Revenue	8,516	10,104
Rest of world
Disaggregation of Revenue [Line Items]
Total Revenue	6,265	5,874
Transferred at a point in time
Disaggregation of Revenue [Line Items]
Total Revenue	56,300	57,463
Transferred over time
Disaggregation of Revenue [Line Items]
Total Revenue	$ 6,017	$ 4,850

Revenue - Additional Informatio

Revenue - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Period of amortization	3 years
Amortization	$ 0.3	$ 0.2
Minimum
Disaggregation of Revenue [Line Items]
Remaining performance obligation, period	2 years
Maximum
Disaggregation of Revenue [Line Items]
Remaining performance obligation, period	7 years
Equipment
Disaggregation of Revenue [Line Items]
Contract assets	$ 2		$ 2.1

Revenue - Unearned Revenue (Det

Revenue - Unearned Revenue (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2019USD ($)
Unearned Revenue [Roll Forward]
Unearned revenue, beginning of period	$ 5,025
Billings	9,847
Revenue recognized	(8,070)
Unearned revenue, end of period	$ 6,802

Revenue - Performance Obligatio

Revenue - Performance Obligations (Details) $ in Millions	Dec. 31, 2019USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 8.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 13.2

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income tax (benefit) expense	$ (1,128)	$ 1,040
Income tax expense (benefit) specific to the period	$ (1,000)	$ (100)

Income Taxes (Unrecognized Tax

Income Taxes (Unrecognized Tax Benefits) (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2019USD ($)
Unrecognized tax benefits that would impact effective tax rate	$ 1,500
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, beginning balance	1,713
Decreases related to settlements	(7)
Decreases related to expiration of statute of limitations	(39)
Unrecognized tax benefits, ending balance	1,667
Maximum
Unrecognized tax benefits that would increase (decrease)	$ 300

Product Warranty Obligation (De

Product Warranty Obligation (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 1,012	$ 1,172
Warranties issued	74	72
Settlements made	(87)	(104)
Ending balance	$ 999	$ 1,140

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet (Details) $ in Thousands	Dec. 31, 2019USD ($)
Assets and Liabilities, Lessee [Abstract]
Operating lease non-current asset	$ 15,041
Total lease assets	15,041
Operating lease current liability	1,926
Operating lease non-current liability	17,483
Total lease liabilities	$ 19,409

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2019USD ($)
Lease, Cost [Abstract]
Operating lease cost	$ 852
Variable lease cost	23
Total lease cost	$ 875

Leases - Other Information (Det

Leases - Other Information (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2019USD ($)
Weighted Average Discount Rate Leases [Abstract]
Weighted average discount rate - operating leases	4.50%
Weighted average remaining lease term [Abstract]
Weighted average remaining lease term- operating leases	8 years
Cash paid for leases [Abstract]
Right-of-use assets obtained in exchange for new operating lease liability	$ 0
Right Of Use Asset Obtained In Exchange for Lease Liability [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 416

Leases - Maturity of Operating

Leases - Maturity of Operating Lease Liability (Details) $ in Thousands	Dec. 31, 2019USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
Remainder of 2020	$ 2,296
2021	3,070
2022	2,732
2023	2,420
2024	2,150
2025	2,142
Thereafter	9,219
Total future undiscounted lease payments	24,029
Less imputed interest	(4,620)
Total reported lease liability	$ 19,409

Leases - Leases - Disclosures R

Leases - Leases - Disclosures Related To Periods Prior To Adoption Of New Lease Standard Minimum Lease Payments (Details) $ in Thousands	Sep. 30, 2019USD ($)
Leases, Operating [Abstract]
2020	$ 2,596
2021	2,575
2022	2,314
2023	2,056
2024	2,095
Thereafter	11,361
Total minimum payments required	$ 22,997

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 13, 2019
Line of Credit Facility [Line Items]
Term loan	$ 110,000
Weighted average interest rate on debt	4.50%
Debt issuance costs		$ 2,600
Secured Debt [Member]
Line of Credit Facility [Line Items]
Term loan		50,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Term loan		60,000
Revolving loan maximum borrowing capacity		$ 100,000
Year one | Secured Debt [Member]
Line of Credit Facility [Line Items]
Amortization percentage of quarterly installments		5.00%
Year two | Secured Debt [Member]
Line of Credit Facility [Line Items]
Amortization percentage of quarterly installments		5.00%
Year three | Secured Debt [Member]
Line of Credit Facility [Line Items]
Amortization percentage of quarterly installments		7.50%
Year four | Secured Debt [Member]
Line of Credit Facility [Line Items]
Amortization percentage of quarterly installments		7.50%
Year five | Secured Debt [Member]
Line of Credit Facility [Line Items]
Amortization percentage of quarterly installments		10.00%

Debt - Schedule of Long-Term De

Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 13, 2019	Sep. 30, 2019
Debt Instrument [Line Items]
Total loans	$ 110,000
Less unamortized issuance costs	(2,558)
Long-term Debt, Current Maturities	(1,972)		$ 0
Total long-term debt, net of current portion	$ 105,470
Revolving loan
Debt Instrument [Line Items]
Total loans		$ 60,000
Term loan
Debt Instrument [Line Items]
Total loans		$ 50,000

Commitments and Contingencies C

Commitments and Contingencies Contingencies (Details) $ in Millions	3 Months Ended
	Dec. 31, 2019CAD ($)
DimOnOff Inc.
Loss Contingencies [Line Items]
Damages sought	$ 1

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Feb. 04, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	88,723	83,988
Tax withholding for share-based compensation	$ 1,600	$ 1,000
Employee contributions	286	289
Total intrinsic value of all options exercised	3,000	300
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost nonvested awards	$ 7,500
Weighted average period, unrecognized compensation cost, nonvested awards	3 years 2 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	$ 10,500
Weighted average period, unrecognized compensation cost, nonvested awards	1 year 9 months 18 days
The Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee contributions	$ 286	$ 289
Common shares issued to employees	24,738	33,706
Shares available for future issuance	179,802
The 2019 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	628,921
The 2019 Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Expiration period	7 years
Director | The 2019 Plan | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Executives and Employees | The 2019 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, 2019	Dec. 31, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 1,600	$ 1,414
Income tax benefit	(332)	(294)
Stock-based compensation after income taxes	1,268	1,120
Cost of Sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	64	55
Sales and Marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	431	353
Research and Development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	294	200
General and Administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 811	$ 806

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, 2019USD ($)$ / sharesshares
Options Outstanding [Roll Forward]
Options Outstanding, Beginning Balance (in shares) | shares	3,348
Options Outstanding, Granted (in shares) | shares	594
Options Outstanding, Exercised (in shares) | shares	(404)
Options Outstanding, Forfeited / Canceled (in shares) | shares	(35)
Options Outstanding, Ending Balance (in shares) | shares	3,503
Options Outstanding, Exercisable (in shares) | shares	2,015
Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price, Beginning Balance	$ 10.85
Weighted Average Exercise Price, Granted	17.71
Weighted Average Exercise Price, Exercised	10.31
Weighted Average Exercise Price, Forfeited / Canceled	11.27
Weighted Average Exercise Price, Ending Balance	12.08
Weighted Average Exercise Price, Exercisable	$ 10.58
Weighted Average Remaining Contractual Term [Abstract]
Weighted Average Remaining Contractual Term, Outstanding	4 years 6 months
Weighted Average Remaining Contractual Term, Exercisable	3 years 4 months 24 days
Aggregate Intrinsic Value, Outstanding | $	$ 19,868	[1]
Aggregate Intrinsic Value, Exercisable | $	$ 14,378	[1]
Closing Stock Price	$ 17.72
[1]	The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $17.72 as of December 31, 2019, 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, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average per option grant date fair value	$ 6.56	$ 4.36
Assumptions Used For Options Grants [Abstract]
Risk free interest rate, minimum	1.67%	2.78%
Risk free interest rate, maximum	1.73%	2.93%
Expected term	6 years	6 years
Expected volatility rate, minimum
Expected volatility rate, maximum	36.00%	33.00%
Weighted average volatility	36.00%	33.00%
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, 2019$ / sharesshares
Nonvested Number of Restricted Stock Units [Roll Forward]
Number of Restricted Stock Units, Beginning Balance | shares	888
Number of Restricted Stock Units, Granted | shares	240
Number of Restricted Stock Units, Vested | shares	(214)
Number of Restricted Stock Units, Canceled | shares	(28)
Number of Restricted Stock Units, Ending Balance | shares	886
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	$ 11.65
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Granted | $ / shares	17.67
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested | $ / shares	11.53
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Canceled | $ / shares	11.04
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance | $ / shares	$ 13.33