Digi International (DGII) 10-Q 5 Feb 21 2021 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Dec. 31, 2020	Jan. 29, 2021
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2020
Document Transition Report	false
Entity File Number	001-34033
Entity Registrant Name	DIGI INTERNATIONAL INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	41-1532464
Entity Address, Address Line One	9350 Excelsior Blvd.
Entity Address, Address Line Two	Suite 700
Entity Address, City or Town	Hopkins
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55343
City Area Code	952
Local Phone Number	912-3444
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		29,709,306
Entity Central Index Key	0000854775
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false
The Nasdaq Stock Market LLC
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	DGII
Security Exchange Name	NASDAQ

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Revenue:
Total Revenue	$ 73,146	$ 62,317
Cost of sales:
Amortization of intangibles	1,114	801
Total cost of sales	32,127	31,853
Gross Profit	41,019	30,464
Operating expenses:
Sales and marketing	14,924	12,061
Research and development	11,093	10,331
General and administrative	14,415	8,555
Restructuring charge	733	0
Total operating expenses	41,165	30,947
Operating loss	(146)	(483)
Other expense, net:
Interest income	0	231
Interest expense	(402)	(432)
Other expense, net	(192)	(236)
Total other expense, net	(594)	(437)
Loss before income taxes	(740)	(920)
Income tax benefit	(433)	(1,128)
Net (loss) income	$ (307)	$ 208
Basic net loss per common share:
Net (loss) income, basic (USD per share)	$ (0.01)	$ 0.01
Diluted net loss per common share
Net (loss) income, diluted (USD per share)	$ (0.01)	$ 0.01
Weighted average common shares:
Basic (shares)	29,374	28,467
Diluted (shares)	29,374	29,614
Product
Revenue:
Revenue	$ 62,604	$ 54,247
Cost of sales:
Cost of sales excluding amortization	27,776	28,491
Service
Revenue:
Revenue	10,542	8,070
Cost of sales:
Cost of sales excluding amortization	$ 3,237	$ 2,561

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (307)	$ 208
Other comprehensive income:
Foreign currency translation adjustment	1,872	2,660
Other comprehensive income	1,872	2,660
Comprehensive income	$ 1,565	$ 2,868

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Current assets:
Cash and cash equivalents	$ 49,263	$ 54,129
Accounts receivable, net	52,500	59,227
Inventories	54,757	51,568
Other current assets	10,742	5,134
Total current assets	167,262	170,058
Property, equipment and improvements, net	13,442	11,507
Operating lease right-of-use assets	16,665	14,334
Intangible assets, net	117,392	121,248
Goodwill	212,366	210,135
Deferred tax assets	566	389
Other non-current assets	1,095	1,011
Assets	528,788	528,682
Current liabilities:
Current portion of long-term debt	1,972	1,972
Accounts payable	22,472	28,067
Accrued compensation	10,317	9,372
Unearned revenue	11,979	7,691
Contingent consideration on acquired business	10,000	4,228
Current portion of operating lease liabilities	2,776	2,527
Other current liabilities	7,971	7,373
Total current liabilities	67,487	61,230
Income taxes payable	1,895	1,958
Deferred tax liabilities	17,823	17,171
Long-term debt	43,483	58,980
Operating lease liability	19,371	16,193
Other non-current liabilities	1,087	1,650
Total liabilities	151,146	157,182
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; 36,090,681 and 35,512,843 shares issued	361	355
Additional paid-in capital	285,536	279,741
Retained earnings	170,023	170,330
Accumulated other comprehensive loss	(21,945)	(23,817)
Treasury stock, at cost, 6,411,776 and 6,353,094 shares	(56,333)	(55,109)
Total stockholders' equity	377,642	371,500
Total liabilities and stockholders' equity	$ 528,788	$ 528,682

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Dec. 31, 2020	Sep. 30, 2020
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	36,090,681	35,512,843
Treasury stock, shares	6,411,776	6,353,094

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Operating activities:
Net (loss) income	$ (307)	$ 208
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation of property, equipment and improvements	1,089	1,169
Amortization of intangible assets	3,961	2,448
Stock-based compensation	1,745	1,600
Deferred income tax provision	750	234
Change in fair value of contingent consideration	5,772	259
Provision for bad debt and product returns	(518)	50
Provision for inventory obsolescence	600	455
Restructuring charge	733	0
Other	118	161
Changes in operating assets and liabilities (net of acquisitions)	(5,631)	(28,651)
Net cash provided by (used in) operating activities	8,312	(22,067)
Investing activities:
Acquisition of business, net of cash acquired	0	(136,098)
Purchase of property, equipment, improvements and certain other intangible assets	(777)	(196)
Net cash used in investing activities	(777)	(136,294)
Financing activities:
Proceeds from long-term debt	0	110,000
Payments on long-term debt	(15,625)	0
Proceeds from stock option plan transactions	3,944	4,160
Proceeds from employee stock purchase plan transactions	334	286
Purchases of common stock	(1,446)	(1,577)
Net cash (used in) provided by financing activities	(12,793)	112,869
Effect of exchange rate changes on cash and cash equivalents	392	1,772
Net decrease in cash and cash equivalents	(4,866)	(43,720)
Cash and cash equivalents, beginning of period	54,129	92,792
Cash and cash equivalents, end of period	49,263	49,072
Supplemental schedule of non-cash investing and financing activities
Transfer of inventory to property, equipment and improvements	(882)	(186)
Contingent consideration recognized related to acquisition of business	0	(9,100)
Tenant improvement allowance	(1,000)	0
Accrual for purchase of property, equipment, improvements and certain other intangible assets	$ (452)	$ 0

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, 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 (loss) income	208				208
Other comprehensive income	2,660					2,660
Employee stock purchase plan issuances (in shares)			(25)
Employee stock purchase plan issuances	286		$ 214	72
Taxes paid for net share settlement of share-based payment awards (in shares)			89
Taxes paid for net share settlement of share-based payment awards	(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)
Beginning balance (in shares) at Sep. 30, 2020		35,513	6,353
Beginning balance at Sep. 30, 2020	371,500	$ 355	$ (55,109)	279,741	170,330	(23,817)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(307)				(307)
Other comprehensive income	1,872					1,872
Employee stock purchase plan issuances (in shares)			(25)
Employee stock purchase plan issuances	334		$ 222	112
Taxes paid for net share settlement of share-based payment awards (in shares)			84
Taxes paid for net share settlement of share-based payment awards	(1,446)		$ (1,446)
Issuance of stock under stock award plans (in shares)		577
Issuance of stock under stock award plans	3,944	$ 6		3,938
Stock-based compensation expense	1,745			1,745
Ending balance (in shares) at Dec. 31, 2020		36,090	6,412
Ending balance at Dec. 31, 2020	$ 377,642	$ 361	$ (56,333)	$ 285,536	$ 170,023	$ (21,945)

Basis of Presentation of Unaudi

Basis of Presentation of Unaudited Interim Condensed Consolidated Financial Statements and Significant Accounting Policies	3 Months Ended
	Dec. 31, 2020
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 United States 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, 2020 (the "2020 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. As described in Note 8, effective with the reorganization announcement on October 7, 2020, the measure of segment operating income (loss) used by our chief operating decision maker ("CODM") changed. As a result, our disclosed measure of segment operating income (loss) has been updated. Potential Impacts of COVID-19 on our Business The impact of the coronavirus disease 2019 ("COVID-19") pandemic continues to unfold. The extent of the pandemic's effect on our operational and financial performance will depend in large part on future developments, which cannot be reasonably estimated at this time. Future developments include the duration, scope and severity of the pandemic, the actions taken to contain or mitigate its impact both within and outside the jurisdictions where we operate, the impact on governmental programs and budgets, the development of treatments or vaccines, and the timing and level of resumption of widespread economic activity. Due to the inherent uncertainty of the unprecedented and rapidly evolving situation, we are unable to predict with any confidence the likely impact of the COVID-19 pandemic on our future operations. For a more detailed discussion see Part I, Item 1 in our Annual Report on Form 10-K for the year ended September 30, 2020 and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 2 of this Form 10-Q. Recently Issued Accounting Pronouncements Adopted In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance changes the disclosure requirements on fair value measurements. We adopted this standard in the first quarter of fiscal 2021. This standard did not have a material impact 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 expected credit losses. We adopted this standard in the first quarter of fiscal 2021, following the modified-retrospective approach. This standard did not have a material impact on our consolidated financial statements.

Acquisitions

Acquisitions	3 Months Ended
	Dec. 31, 2020
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 have been included in our condensed consolidated financial statements within our IoT Products & Services segment since the date of acquisition. During the first quarter of fiscal 2021, we recorded an out-of-period adjustment in connection with the purchase price accounting of Opengear. This balance sheet adjustment resulted in a decrease in fair value of net tangible assets acquired of $1.1 million, a decrease of $0.3 million to non-current deferred tax liability and an increase to goodwill of $0.8 million. Management assessed the impact of this adjustment and believes, after considering both quantitative and qualitative factors, that it is not material to our current or previously issued consolidated financial statements. The following table summarizes the final fair values of Opengear assets acquired and liabilities assumed as of the acquisition date (in thousands): Cash $ 148,058 Contingent consideration 5,100 Total $ 153,158 Fair value of net tangible assets acquired $ 18,096 Identifiable intangible assets: Customer relationships 79,000 Purchased and core technology 18,100 Trademarks 8,000 Deferred tax liability on identifiable intangible assets (27,126) Goodwill 57,088 Total $ 153,158 The Condensed Consolidated Balance Sheet as of December 31, 2020 reflects the final allocation of the purchase price to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Dec. 31, 2020
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHAREBasic net (loss) income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares result from dilutive common stock options and restricted stock units. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common shares. All potentially dilutive common equivalent shares are excluded from the calculations of net loss per diluted share due to their anti-dilutive effect for the three months ended December 31, 2020. 3. EARNINGS PER SHARE (CONTINUED) The following table is a reconciliation of the numerators and denominators in the net (loss) income per common share calculations (in thousands, except per common share data): Three months ended December 31, 2020 2019 Numerator: Net (loss) income $ (307) $ 208 Denominator: Denominator for basic net (loss) income per common share — weighted average shares outstanding 29,374 28,467 Effect of dilutive securities: Stock options and restricted stock units — 1,147 Denominator for diluted net (loss) income per common share — adjusted weighted average shares 29,374 29,614 Net (loss) income per common share, basic $ (0.01) $ 0.01 Net (loss) income per common share, diluted $ (0.01) $ 0.01 For the three months ended December 31, 2020 and 2019, there were 547,045 and 594,447 potentially dilutive shares, respectively. These potentially dilutive shares were 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. In addition, due to the net loss for the three months ended December 31, 2020, there were 1,157,727 common stock options and restricted stock units that were not included in the above computation of diluted earnings per share.

Selected Balance Sheet Data

Selected Balance Sheet Data	3 Months Ended
	Dec. 31, 2020
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, Accounts receivable, net: Accounts receivable $ 57,782 $ 65,027 Less allowance for doubtful accounts 2,987 3,778 Less reserve for future returns and pricing adjustments 2,295 2,022 Accounts receivable, net $ 52,500 $ 59,227 Inventories: Raw materials $ 14,695 $ 14,009 Finished goods 40,062 37,559 Inventories $ 54,757 $ 51,568

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 31, 2020
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTSFinancial 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). 5. FAIR VALUE MEASUREMENTS (CONTINUED) The following tables provide information by level for financial liabilities that are measured at fair value on a recurring basis (in thousands): Total Fair Fair Value Measurements Using December 31, 2020 Level 1 Level 2 Level 3 Liabilities: Contingent consideration on acquired businesses $ 10,000 $ — $ — $ 10,000 Total liabilities measured at fair value $ 10,000 $ — $ — $ 10,000 Total Fair Fair Value Measurements Using September 30, 2020 Level 1 Level 2 Level 3 Liabilities: Contingent consideration on acquired businesses $ 4,228 $ — $ — $ 4,228 Total liabilities measured at fair value $ 4,228 $ — $ — $ 4,228 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 4 years, subject to achieving specified revenue thresholds for sales of Bluenica products. We paid the final installment of $2.9 million during the third quarter of fiscal 2020. In connection with our acquisition of Accelerated Concepts, Inc. ("Accelerated") in January 2018, we agreed to make contingent earn-out payments if specified revenue thresholds for sales of Accelerated products were achieved. We paid the first installment payment of $3.5 million in the third quarter of fiscal 2019. The earn-out period for this acquisition ended on January 22, 2020. We paid the final installment of $2.4 million in the third quarter of fiscal 2020. In connection with our acquisition of Opengear, we agreed to make contingent payments, based upon certain revenue thresholds (see Note 2 to the condensed consolidated financial statements). We paid the first installment of $0.9 million during the third quarter of fiscal 2020. The fair value of the remaining liability for contingent consideration for the acquisition of Opengear was equal to the maximum payout of $10.0 million at December 31, 2020 due to a substantial increase in revenue over our previous expectations. We expect to pay this amount during the second quarter of fiscal 2021. 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, 2020 2019 Fair value at beginning of period $ 4,228 $ 5,407 Contingent consideration recognized for acquired business — 9,100 Change in fair value of contingent consideration 5,772 259 Fair value at end of period $ 10,000 $ 14,766 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. The fair value of the contingent consideration at December 31, 2020 was based on the actual achievement of the specified revenue thresholds for Opengear.

Goodwill and Other Identifiable

Goodwill and Other Identifiable Intangible Assets, Net	3 Months Ended
	Dec. 31, 2020
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, 2020 September 30, 2020 Gross Accum. Net Gross Accum. Net Purchased and core technology $ 76,473 $ (57,017) $ 19,456 $ 76,011 $ (55,482) $ 20,529 License agreements 112 (112) — 112 (112) — Patents and trademarks 22,936 (13,968) 8,968 22,836 (13,535) 9,301 Customer relationships 125,805 (36,957) 88,848 125,500 (34,232) 91,268 Non-compete agreements 600 (480) 120 600 (450) 150 Total $ 225,926 $ (108,534) $ 117,392 $ 225,059 $ (103,811) $ 121,248 Amortization expense was $4.0 million and $2.4 million for the three months ended December 31, 2020 and 2019, 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 2021 and the five succeeding fiscal years is (in thousands): 2021 (nine months) $ 11,616 2022 $ 14,720 2023 $ 12,518 2024 $ 11,815 2025 $ 8,358 2026 $ 8,126 The changes in the carrying amount of goodwill by reportable segments are (in thousands): Three months ended December 31, IoT IoT Total Balance on September 30, 2020 $ 160,365 $ 49,770 $ 210,135 Adjustment (see Note 2) 846 — 846 Foreign currency translation adjustment 834 551 1,385 Balance at December 31, 2020 $ 162,045 $ 50,321 $ 212,366 Goodwill represents the excess of cost over the fair value of net identifiable assets acquired. Goodwill is quantitatively tested for impairment on an annual basis as of June 30, or more frequently if events or circumstances occur which could indicate impairment. We continue to have two reportable segments, our IoT Products & Services segment and our IoT Solutions segment (see Note 8). Effective with the reorganization announcement on October 7, 2020 (see Note 13), our IoT Products & Services business is now structured to include four operating segments, each with a segment manager: Cellular Routers, Console Servers, OEM Solutions and Infrastructure Management. We have concluded that these operating segments along with our IoT Solutions segment constitute separate reporting units and will be tested individually for impairment. As of December 31, 2020, we have performed a qualitative assessment and concluded that there is no impairment or triggering events. For our fiscal 2020 annual impairment test we concluded that the IoT Products & Services segment and the IoT Solutions segment constitute separate reporting units for purposes of the ASC 350-20-35 "Goodwill Measurement of Impairment" assessment and both units were tested individually for impairment. 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. Fair values for both reporting units were each estimated on a standalone basis using a weighted combination of the income approach and market approach. 6. GOODWILL AND OTHER INTANGIBLE ASSETS, NET (CONTINUED) The income approach indicates the fair value of a business based on the value of the cash flows the business or asset can be expected to generate in the future. A commonly used variation of the income approach used to value a business is the discounted cash flow (“DCF”) method. The DCF method is a valuation technique in which the value of a business is estimated on the earnings capacity, or available cash flow, of that business. Earnings capacity represents the earnings available for distribution to stockholders after consideration of the reinvestment required for future growth. Significant judgment is required to estimate the amount and timing of future cash flows for each reporting unit and the relative risk of achieving those cash flows. The market approach indicates the fair value of a business or asset based on a comparison of the business or asset to comparable publicly traded companies or assets and transactions in its industry as well as our prior acquisitions. This approach can be estimated through the guideline company method. This method indicates fair value of a business by comparing it to publicly traded companies in similar lines of business. After identifying and selecting the guideline companies, we make judgments about the comparability of the companies based on size, growth rates, profitability, risk, and return on investment in order to estimate market multiples. These multiples are then applied to the reporting units to estimate a fair value. 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. These include external factors such as industry and economic trends. They also include internal factors such as changes in our business strategy and our internal forecasts. Changes in circumstances or a potential event could negatively affect the estimated fair values. We will continue to monitor potential COVID-19 industry and demand impacts as this could potentially affect our cash flows and market capitalization. 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 2020 Annual Impairment Test As of June 30, 2020, we had a total of $157.1 million of goodwill for the IoT Products & Services reporting unit and $49.6 million of goodwill for the IoT Solutions reporting unit. At June 30, 2020, 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 $338.2 million as of June 30, 2020. This implied a range of control premiums of 17.0% to 29.1%. 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.

Indebtedness

Indebtedness	3 Months Ended
	Dec. 31, 2020
Debt Disclosure [Abstract]
INDEBTEDNESS	INDEBTEDNESS 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. The Credit Facility includes: (i) a $50 million term loan (the "Term Loan") and (ii) a $100 million revolving loan (the "Revolving Loan"). Prior to May 4, 2020, borrowings under the Credit Facility bore interest rates based on an underlying variable benchmark plus applicable margin based on our total leverage ("ABR"); this interest rate was reset quarterly. Effective May 4, 2020, borrowings under the Credit Facility bear a variable interest rate of LIBOR plus an applicable margin spread from 3.25% to 1.25%. The amount of the applicable margin spread is a function of our leverage ratio and is reset monthly. 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 which is also reported in interest expense. Our weighted average interest rate at December 31, 2020 was 0.6%. We also incurred debt issuance costs under the Credit Facility of $2.6 million in the first quarter of fiscal 2020. These issuance costs are being amortized using the straight-line method over the term of the loan and reported in interest expense. Amounts under the Term Loan will be repaid in quarterly installments on the last day of each fiscal quarter. Amortization is 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. The fair values of the Term Loan and Revolving Loan approximated carrying value at December 31, 2020. 7. INDEBTEDNESS (CONTINUED) The following table is a summary of our long-term indebtedness at December 31, 2020 (in thousands): Term loan $ 47,500 Total loans 47,500 Less unamortized issuance costs (2,045) Less current maturities of long-term debt (1,972) Total long-term debt, net of current portion $ 43,483 The following table is a summary of future maturities of our aggregate long-term debt at December 31, 2020 (in thousands): 2021 (nine months) $ 1,875 2022 3,438 2023 3,750 2024 4,687 2025 33,750 Total long-term debt $ 47,500 Covenants and Security Interest The agreements governing the Credit Facility contain a number of covenants. Among other thing, these covenants require us to maintain a certain financial ratio (net leverage ratio and minimum fixed charge ratio). At December 31, 2020, we were in compliance with our debt covenants. Amounts borrowed under the Credit Facility are secured by substantially all of our assets.

Segment Information

Segment Information	3 Months Ended
	Dec. 31, 2020
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION We have two reportable segments: IoT Products & Services and IoT Solutions. Effective with the reorganization announcement on October 7, 2020 (see Note 13), our IoT Products & Services business is now structured to include four operating segments, each with a segment manager. There four operating segments include: • Cellular Routers - box devices (fully enclosed) that provide connectivity typically in a place where the device can be plugged in exclusively using cellular communications. • Console Servers - similar to cellular routers except they are exclusively for edge computing installments and date center applications exclusively using cellular communications. • OEM Solutions - Original Equipment Manufacturers ("OEM") will be a chip, rather than a boxed device. This can come in the form of a stand-alone chip, or from a system on modules ("SOMs"). While cellular is used, other communication protocols can be used such as Zigbee, Bluetooth or Radio-Frequency ("RF") based on application. • Infrastructure Management - includes connect sensors that will be cellular enabled devices that are battery operated, as well as other types of console server applications that are more DAL based compared to Console Servers. They do have some products that are not using cellular communications, but a large part of the portfolio does use cellular communication. We believe these four operating segments have similar qualitative and quantitative factors which allow us to aggregate them under the IoT Products & Services reportable segment. The qualitative factors include similar nature of products and services, production process, type or class of customers and methods used to distribute the products. The quantitative factors include similar operating income (loss). Our CODM reviews and makes business decisions which includes a primary review of operating income (loss) but also includes gross profit. Thus, our measure of segment measure of profit or loss used by our CODM changed. The shared general and administrative costs are now allocated to each operating segment. As a result, our disclosed measure of segment operating income (loss) has been updated for all periods presented. The change to the business segment operating income (loss) aligns with the update to how the CODM assesses performance and allocates resources for our business segments. 8. SEGMENT INFORMATION (CONTINUED) Summary operating results for each of our segments were (in thousands): Three months ended December 31, 2020 2019 Revenue IoT Products & Services $ 61,780 $ 54,613 IoT Solutions 11,366 7,704 Total revenue $ 73,146 $ 62,317 Gross Profit IoT Products & Services $ 35,679 $ 26,651 IoT Solutions 5,340 3,813 Total gross profit $ 41,019 $ 30,464 Operating Income (Loss) IoT Products & Services $ 1,269 $ 4,397 IoT Solutions (1,415) (4,880) Total operating loss $ (146) $ (483) Depreciation and Amortization IoT Products & Services $ 3,134 $ 1,706 IoT Solutions 1,916 1,911 Total depreciation and amortization $ 5,050 $ 3,617 Total expended for property, plant and equipment was (in thousands): Three months ended December 31, 2020 2019 IoT Products & Services $ 777 $ 190 IoT Solutions* — 6 Total expended for property, plant and equipment $ 777 $ 196 * Excluded from this amount is $882 and $186 of transfers of inventory to property plant and equipment for subscriber assets for the three months ended December 31, 2020 and 2019, respectively. Total assets for each of our segments were (in thousands): December 31, September 30, IoT Products & Services $ 394,315 $ 387,578 IoT Solutions 85,210 86,975 Unallocated* 49,263 54,129 Total assets $ 528,788 $ 528,682 *Unallocated consists of cash and cash equivalents.

Revenue

Revenue	3 Months Ended
	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Revenue Disaggregation The following table summarizes our revenue by geographic location of our customers (in thousands): Three months ended December 31, 2020 2019 North America, primarily the United States $ 54,018 $ 47,536 Europe, Middle East & Africa 10,536 8,516 Rest of world 8,592 6,265 Total revenue $ 73,146 $ 62,317 The following table summarizes our revenue by the timing of revenue recognition (in thousands): Three months ended December 31, 2020 2019 Transferred at a point in time $ 64,188 $ 56,300 Transferred over time 8,958 6,017 Total revenue $ 73,146 $ 62,317 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 $2.4 million and $2.0 million as of December 31, 2020 and September 30, 2020, respectively, are included in property, equipment and improvements, net. Depreciation expense for these subscriber assets, which is included in cost of sales, was $0.5 million and $0.3 million for the three months ended December 31, 2020 and December 31, 2019, 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. These pertain to 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 December 31, 2020 2019 Unearned revenue, beginning of period $ 9,341 $ 5,025 Billings 14,267 9,847 Revenue recognized (10,542) (8,070) Unearned revenue, end of period $ 13,066 $ 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, 2020, approximately $13.5 million of revenue is expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize revenue on approximately $9.1 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, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Our income tax benefit was $0.4 million for the three months ended December 31, 2020. Included in this benefit was a net tax benefit discretely related to the three months ended December 31, 2020 of $0.3 million. This benefit primarily was the result of excess tax benefits recognized on stock compensation. 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. This was primarily due to certain research and development tax credits generated in the U.S. 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, 2020 $ 2,600 Expiration of statute of limitations (54) Unrecognized tax benefits as of December 31, 2020 $ 2,546 The total amount of unrecognized tax benefits at December 31, 2020 that, if recognized, would affect our effective tax rate was $2.4 million, after considering the impact of interest and deferred benefit items. We expect that the total amount of unrecognized tax benefits will decrease by approximately $0.1 million over the next 12 months.

Product Warranty Obligation

Product Warranty Obligation	3 Months Ended
	Dec. 31, 2020
Product Warranties Disclosures [Abstract]
PRODUCT WARRANTY OBLIGATION	PRODUCT WARRANTY OBLIGATION The following tables summarize 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, 2020 $ 942 $ 123 $ (100) $ 965 Three months ended December 31, 2019 $ 1,012 $ 74 $ (87) $ 999

Leases

Leases	3 Months Ended
	Dec. 31, 2020
Leases [Abstract]
LEASES	LEASES All of our leases are operating leases and primarily consist of leases for office space. 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. 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. When determining our right-of-use asset, we 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, September 30, Assets Operating leases Other non-current assets $ 16,665 $ 14,334 Total lease assets $ 16,665 $ 14,334 Liabilities Operating leases Other current liabilities $ 2,776 $ 2,527 Operating leases Other non-current liabilities 19,371 16,193 Total lease liabilities $ 22,147 $ 18,720 The following were the components of our lease cost which is recorded in both cost of goods sold and selling, general and administrative expense (in thousands): Three months ended December 31, 2020 2019 Operating lease cost $ 861 $ 814 Variable lease cost 268 23 Short-term lease cost 32 38 Total lease cost $ 1,161 $ 875 The following table presents supplemental information related to operating leases (in thousands): Three months ended December 31, 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 911 $ 416 Right-of-use assets obtained in exchange for new operating lease liabilities $ 2,892 $ — Non-cash tenant improvement allowance $ 1,000 $ — At December 31, 2020 the weighted average remaining lease term of our operating leases was 6.3 years and the weighted average discount rate for these leases was 4.6%. 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, 2020 (in thousands): Fiscal year Amount Remainder of 2021 $ 2,798 2022 3,412 2023 3,148 2024 2,919 2025 2,821 2026 2,591 Thereafter 9,266 Total future undiscounted lease payments 26,955 Less imputed interest (4,808) Total reported lease liability $ 22,147

Restructuring

Restructuring	3 Months Ended
	Dec. 31, 2020
Restructuring and Related Activities [Abstract]
Restructuring and Related Activities Disclosure	RESTRUCTURING Q1 FY2021 Restructuring On October 7, 2020, our Board of Directors approved a reorganization of our IoT Products & Services business segment. The restructuring plan aligns the business segment's organization around product lines. Under this plan, we recorded a charge of $0.7 million for employee termination charges and eliminated 19 employment positions primarily in the U.S. during the three months ended December 31, 2020. Below is a summary of the restructuring charges and other activity (in thousands): Q1 2021 Restructuring Employee Termination Costs Balance at September 30, 2020 $ — Restructuring charge 733 Payments (510) Foreign currency fluctuation (27) Balance at December 31, 2020 $ 196

Contingencies

Contingencies	3 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Leases We lease certain of our buildings and equipment under noncancelable lease agreements. Please refer to Note 12 to our condensed consolidated financial statements for additional information. Litigation 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, 2020
Share-based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Stock-based awards were granted under the 2020 Omnibus Incentive Plan (the "2020 Plan") beginning January 29, 2020. Prior to that date such awards made in fiscal 2020 were granted under the 2019 Omnibus Incentive Plan (the "2019 Plan"). Upon stockholder approval of the 2020 Plan, we ceased granting awards under the 2019 Plan. Shares subject to awards under the 2019 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 2020 Plan. The authority to grant options under the 2020 Plan and to set other terms and conditions rests with the Compensation Committee of the Board of Directors. The 2020 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 2020 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 2020 Plan is scheduled to expire on January 28, 2030. Options under the 2020 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 15. STOCK-BASED COMPENSATION (CONTINUED) 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 or performance stock units, we issue new shares of stock. As of December 31, 2020, there were approximately 648,815 shares available for future grants under the 2020 Plan. Cash received from the exercise of stock options was $3.9 million and $4.2 million for the three months ended December 31, 2020 and December 31, 2019, respectively. 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. When employees make this election we retain a portion of shares issuable under the award. Tax with withholding obligations otherwise occur by the employee paying cash to us for the withholding. During the three months ended December 31, 2020 and 2019, our employees forfeited 83,928 shares and 88,723 shares, respectively, in order to satisfy respective withholding tax obligations of $1.4 million and $1.6 million. We sponsor an Employee Stock Purchase Plan as amended and restated as of December 10, 2019, October 29, 2013, December 4, 2009 and November 27, 2006 (the "ESPP"), covering all domestic employees with at least 90 days of continuous service and who are customarily employed at least 20 hours per week. The ESPP allows eligible participants the right to purchase common stock on a quarterly basis at the lower of 85% of the market price at the beginning or end of each three-month offering period. The most recent amendments to the ESPP, ratified by our stockholders on January 29, 2020, increased the total number of shares to 3,425,000 that may be purchased under the plan. ESPP contributions by employees were $0.3 million for both of the three-month periods ended December 31, 2020 and December 31, 2019, respectively. Pursuant to the ESPP, 25,246 and 24,738 common shares were issued to employees during the three months ended December 31, 2020 and December 31, 2019, respectively. Shares are issued under the ESPP from treasury stock. As of December 31, 2020, 686,468 common shares were available for future issuances under the ESPP. The following table shows stock-based compensation expense that is included in the consolidated results of operations (in thousands): Three months ended December 31, 2020 2019 Cost of sales $ 82 $ 64 Sales and marketing 525 431 Research and development 210 294 General and administrative 928 811 Stock-based compensation before income taxes 1,745 1,600 Income tax benefit (365) (332) Stock-based compensation after income taxes $ 1,380 $ 1,268 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, 2020 3,393 $12.20 Granted 418 16.91 Exercised (357) 11.06 Forfeited / Canceled (69) 14.17 Balance at December 31, 2020 3,385 $12.86 4.2 $ 20,433 Exercisable at December 31, 2020 1,983 $11.28 3.1 $ 15,103 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $18.90 as of December 31, 2020, 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. 15. STOCK-BASED COMPENSATION (CONTINUED) The total intrinsic value of all options exercised during the three months ended December 31, 2020 was $2.2 million and during the three months ended December 31, 2019 was $3.0 million. The following table 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, 2020 2019 Weighted average per option grant date fair value $7.12 $6.56 Assumptions used for option grants: Risk free interest rate 0.51% - 0.54% 1.67% - 1.73% Expected term 6.00 years 6.00 years Expected volatility 44% 36% Weighted average volatility 44% 36% Expected dividend yield — — 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. As of December 31, 2020, the total unrecognized compensation cost related to non-vested stock options was $7.9 million and the related weighted average period over which it is expected to be recognized is approximately 3.1 years. Non-vested Stock Units The following table presents a summary of our non-vested restricted stock as of December 31, 2020 and changes during the three months then ended (in thousands, except per common share amounts): RSUs Number of Awards Weighted Average Grant Date Fair Value Nonvested at September 30, 2020 972 $ 13.20 Granted 254 $ 16.95 Vested (221) $ 12.93 Canceled (46) $ 13.16 Nonvested at December 31, 2020 959 $ 14.26

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, 2020
Accounting Policies [Abstract]
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Adopted In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance changes the disclosure requirements on fair value measurements. We adopted this standard in the first quarter of fiscal 2021. This standard did not have a material impact 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 expected credit losses. We adopted this standard in the first quarter of fiscal 2021, following the modified-retrospective approach. This standard did not have a material impact on our consolidated financial statements.

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Dec. 31, 2020
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	The following table summarizes the final fair values of Opengear assets acquired and liabilities assumed as of the acquisition date (in thousands): Cash $ 148,058 Contingent consideration 5,100 Total $ 153,158 Fair value of net tangible assets acquired $ 18,096 Identifiable intangible assets: Customer relationships 79,000 Purchased and core technology 18,100 Trademarks 8,000 Deferred tax liability on identifiable intangible assets (27,126) Goodwill 57,088 Total $ 153,158

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Dec. 31, 2020
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 (loss) income per common share calculations (in thousands, except per common share data): Three months ended December 31, 2020 2019 Numerator: Net (loss) income $ (307) $ 208 Denominator: Denominator for basic net (loss) income per common share — weighted average shares outstanding 29,374 28,467 Effect of dilutive securities: Stock options and restricted stock units — 1,147 Denominator for diluted net (loss) income per common share — adjusted weighted average shares 29,374 29,614 Net (loss) income per common share, basic $ (0.01) $ 0.01 Net (loss) income per common share, diluted $ (0.01) $ 0.01

Selected Balance Sheet Data (Ta

Selected Balance Sheet Data (Tables)	3 Months Ended
	Dec. 31, 2020
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, Accounts receivable, net: Accounts receivable $ 57,782 $ 65,027 Less allowance for doubtful accounts 2,987 3,778 Less reserve for future returns and pricing adjustments 2,295 2,022 Accounts receivable, net $ 52,500 $ 59,227 Inventories: Raw materials $ 14,695 $ 14,009 Finished goods 40,062 37,559 Inventories $ 54,757 $ 51,568

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Fair Value of Assets Measured on Recurring Basis	The following tables provide information by level for financial liabilities that are measured at fair value on a recurring basis (in thousands): Total Fair Fair Value Measurements Using December 31, 2020 Level 1 Level 2 Level 3 Liabilities: Contingent consideration on acquired businesses $ 10,000 $ — $ — $ 10,000 Total liabilities measured at fair value $ 10,000 $ — $ — $ 10,000 Total Fair Fair Value Measurements Using September 30, 2020 Level 1 Level 2 Level 3 Liabilities: Contingent consideration on acquired businesses $ 4,228 $ — $ — $ 4,228 Total liabilities measured at fair value $ 4,228 $ — $ — $ 4,228
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, 2020 2019 Fair value at beginning of period $ 4,228 $ 5,407 Contingent consideration recognized for acquired business — 9,100 Change in fair value of contingent consideration 5,772 259 Fair value at end of period $ 10,000 $ 14,766

Goodwill and Other Identifiab_2

Goodwill and Other Identifiable Intangible Assets, Net (Tables)	3 Months Ended
	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Amortizable Intangible Assets	Amortizable intangible assets were (in thousands): December 31, 2020 September 30, 2020 Gross Accum. Net Gross Accum. Net Purchased and core technology $ 76,473 $ (57,017) $ 19,456 $ 76,011 $ (55,482) $ 20,529 License agreements 112 (112) — 112 (112) — Patents and trademarks 22,936 (13,968) 8,968 22,836 (13,535) 9,301 Customer relationships 125,805 (36,957) 88,848 125,500 (34,232) 91,268 Non-compete agreements 600 (480) 120 600 (450) 150 Total $ 225,926 $ (108,534) $ 117,392 $ 225,059 $ (103,811) $ 121,248
Schedule of Estimated Future Amortization Expense Related to Intangible Assets	Estimated amortization expense related to intangible assets for the remainder of fiscal 2021 and the five succeeding fiscal years is (in thousands): 2021 (nine months) $ 11,616 2022 $ 14,720 2023 $ 12,518 2024 $ 11,815 2025 $ 8,358 2026 $ 8,126
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 IoT Total Balance on September 30, 2020 $ 160,365 $ 49,770 $ 210,135 Adjustment (see Note 2) 846 — 846 Foreign currency translation adjustment 834 551 1,385 Balance at December 31, 2020 $ 162,045 $ 50,321 $ 212,366

Indebtedness (Tables)

Indebtedness (Tables)	3 Months Ended
	Dec. 31, 2020
Debt Disclosure [Abstract]
Schedule of Debt [Table Text Block]	The following table is a summary of our long-term indebtedness at December 31, 2020 (in thousands): Term loan $ 47,500 Total loans 47,500 Less unamortized issuance costs (2,045) Less current maturities of long-term debt (1,972) Total long-term debt, net of current portion $ 43,483
Schedule of Maturities of Long-term Debt [Table Text Block]	The following table is a summary of future maturities of our aggregate long-term debt at December 31, 2020 (in thousands): 2021 (nine months) $ 1,875 2022 3,438 2023 3,750 2024 4,687 2025 33,750 Total long-term debt $ 47,500

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Dec. 31, 2020
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, 2020 2019 Revenue IoT Products & Services $ 61,780 $ 54,613 IoT Solutions 11,366 7,704 Total revenue $ 73,146 $ 62,317 Gross Profit IoT Products & Services $ 35,679 $ 26,651 IoT Solutions 5,340 3,813 Total gross profit $ 41,019 $ 30,464 Operating Income (Loss) IoT Products & Services $ 1,269 $ 4,397 IoT Solutions (1,415) (4,880) Total operating loss $ (146) $ (483) Depreciation and Amortization IoT Products & Services $ 3,134 $ 1,706 IoT Solutions 1,916 1,911 Total depreciation and amortization $ 5,050 $ 3,617
Payments to Acquire Property, Plant and Equipment by Segment	Total expended for property, plant and equipment was (in thousands): Three months ended December 31, 2020 2019 IoT Products & Services $ 777 $ 190 IoT Solutions* — 6 Total expended for property, plant and equipment $ 777 $ 196 * Excluded from this amount is $882 and $186 of transfers of inventory to property plant and equipment for subscriber assets for the three months ended December 31, 2020 and 2019, respectively.
Reconciliation of Assets from Segment to Consolidated	Total assets for each of our segments were (in thousands): December 31, September 30, IoT Products & Services $ 394,315 $ 387,578 IoT Solutions 85,210 86,975 Unallocated* 49,263 54,129 Total assets $ 528,788 $ 528,682 *Unallocated consists of cash and cash equivalents.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table summarizes our revenue by geographic location of our customers (in thousands): Three months ended December 31, 2020 2019 North America, primarily the United States $ 54,018 $ 47,536 Europe, Middle East & Africa 10,536 8,516 Rest of world 8,592 6,265 Total revenue $ 73,146 $ 62,317 The following table summarizes our revenue by the timing of revenue recognition (in thousands): Three months ended December 31, 2020 2019 Transferred at a point in time $ 64,188 $ 56,300 Transferred over time 8,958 6,017 Total revenue $ 73,146 $ 62,317
Contract with Customer, Asset and Liability	Changes in unearned revenue were (in thousands): Three months ended December 31, 2020 2019 Unearned revenue, beginning of period $ 9,341 $ 5,025 Billings 14,267 9,847 Revenue recognized (10,542) (8,070) Unearned revenue, end of period $ 13,066 $ 6,802

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Dec. 31, 2020
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, 2020 $ 2,600 Expiration of statute of limitations (54) Unrecognized tax benefits as of December 31, 2020 $ 2,546

Product Warranty Obligation (Ta

Product Warranty Obligation (Tables)	3 Months Ended
	Dec. 31, 2020
Product Warranties Disclosures [Abstract]
Schedule of Product Warranty Accrual	The following tables summarize 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, 2020 $ 942 $ 123 $ (100) $ 965 Three months ended December 31, 2019 $ 1,012 $ 74 $ (87) $ 999

Leases (Tables)

Leases (Tables)	3 Months Ended
	Dec. 31, 2020
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, September 30, Assets Operating leases Other non-current assets $ 16,665 $ 14,334 Total lease assets $ 16,665 $ 14,334 Liabilities Operating leases Other current liabilities $ 2,776 $ 2,527 Operating leases Other non-current liabilities 19,371 16,193 Total lease liabilities $ 22,147 $ 18,720
Components of Lease Cost	The following were the components of our lease cost which is recorded in both cost of goods sold and selling, general and administrative expense (in thousands): Three months ended December 31, 2020 2019 Operating lease cost $ 861 $ 814 Variable lease cost 268 23 Short-term lease cost 32 38 Total lease cost $ 1,161 $ 875
Supplemental Disclosures Leases	The following table presents supplemental information related to operating leases (in thousands): Three months ended December 31, 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 911 $ 416 Right-of-use assets obtained in exchange for new operating lease liabilities $ 2,892 $ — Non-cash tenant improvement allowance $ 1,000 $ — At December 31, 2020 the weighted average remaining lease term of our operating leases was 6.3 years and the weighted average discount rate for these leases was 4.6%.
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, 2020 (in thousands): Fiscal year Amount Remainder of 2021 $ 2,798 2022 3,412 2023 3,148 2024 2,919 2025 2,821 2026 2,591 Thereafter 9,266 Total future undiscounted lease payments 26,955 Less imputed interest (4,808) Total reported lease liability $ 22,147

Restructuring (Tables)

Restructuring (Tables)	3 Months Ended
	Dec. 31, 2020
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Reserve by Type of Cost	Below is a summary of the restructuring charges and other activity (in thousands): Q1 2021 Restructuring Employee Termination Costs Balance at September 30, 2020 $ — Restructuring charge 733 Payments (510) Foreign currency fluctuation (27) Balance at December 31, 2020 $ 196

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
Schedule of Stock-Based Compensation Expense	The following table shows stock-based compensation expense that is included in the consolidated results of operations (in thousands): Three months ended December 31, 2020 2019 Cost of sales $ 82 $ 64 Sales and marketing 525 431 Research and development 210 294 General and administrative 928 811 Stock-based compensation before income taxes 1,745 1,600 Income tax benefit (365) (332) Stock-based compensation after income taxes $ 1,380 $ 1,268
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, 2020 3,393 $12.20 Granted 418 16.91 Exercised (357) 11.06 Forfeited / Canceled (69) 14.17 Balance at December 31, 2020 3,385 $12.86 4.2 $ 20,433 Exercisable at December 31, 2020 1,983 $11.28 3.1 $ 15,103
Schedule of Valuation Assumptions	The following table 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, 2020 2019 Weighted average per option grant date fair value $7.12 $6.56 Assumptions used for option grants: Risk free interest rate 0.51% - 0.54% 1.67% - 1.73% Expected term 6.00 years 6.00 years Expected volatility 44% 36% Weighted average volatility 44% 36% Expected dividend yield — —
Schedule of Nonvested Restricted Stock Units	The following table presents a summary of our non-vested restricted stock as of December 31, 2020 and changes during the three months then ended (in thousands, except per common share amounts): RSUs Number of Awards Weighted Average Grant Date Fair Value Nonvested at September 30, 2020 972 $ 13.20 Granted 254 $ 16.95 Vested (221) $ 12.93 Canceled (46) $ 13.16 Nonvested at December 31, 2020 959 $ 14.26

Acquisitions Details (Details)

Acquisitions Details (Details) - Opengear	3 Months Ended
	Dec. 31, 2020
Other non-current assets
Business Acquisition [Line Items]
Immaterial out-of-period adjustment	0.8 million
Other current liabilities
Business Acquisition [Line Items]
Immaterial out-of-period adjustment	1.1 million
Other non-current liabilities
Business Acquisition [Line Items]
Immaterial out-of-period adjustment	0.3 million

Acquisitions (Assets Acquired a

Acquisitions (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands	Dec. 13, 2019	Dec. 31, 2020	Sep. 30, 2020
Business Acquisition [Line Items]
Goodwill		$ 212,366	$ 210,135
Opengear
Business Acquisition [Line Items]
Cash	$ 148,058
Contingent consideration	5,100
Total consideration transferred	153,158
Fair value of net tangible assets acquired	18,096
Deferred tax liability on identifiable intangible assets	(27,126)
Goodwill	57,088
Total assets acquired and liabilities assumed	153,158
Customer Relationships | Opengear
Business Acquisition [Line Items]
Identifiable intangible assets	79,000
Purchased and Core Technology | Opengear
Business Acquisition [Line Items]
Identifiable intangible assets	18,100
Trademarks | Opengear
Business Acquisition [Line Items]
Identifiable intangible assets	$ 8,000

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Net (loss) income	$ (307)	$ 208
Denominator:
Denominator for basic net (loss) income per common share — weighted average shares outstanding	29,374,000	28,467,000
Effect of dilutive securities:
Stock options and restricted stock units	0	1,147,000
Denominator for diluted net (loss) income per common share — adjusted weighted average shares	29,374,000	29,614,000
Basic net loss per common share:
Net (loss) income, basic (USD per share)	$ (0.01)	$ 0.01
Diluted net loss per common share
Net (loss) income, diluted (USD per share)	$ (0.01)	$ 0.01
Potentially dilutive securities excluded from computation of earnings per share	547,045	594,447
Excluded incremental common shares related to common stock options and restricted stock units	1,157,727

Selected Balance Sheet Data (De

Selected Balance Sheet Data (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Accounts receivable, net:
Accounts receivable	$ 57,782	$ 65,027
Less allowance for doubtful accounts	2,987	3,778
Less reserve for future returns and pricing adjustments	2,295	2,022
Accounts receivable, net	52,500	59,227
Inventories:
Raw materials	14,695	14,009
Finished goods	40,062	37,559
Inventories	$ 54,757	$ 51,568

Fair Value Measurements (Financ

Fair Value Measurements (Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
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 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	10,000	4,228	$ 14,766	$ 5,407
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	10,000	4,228
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	10,000	4,228
Estimate of Fair Value Measurement | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	10,000	4,228
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	$ 10,000	$ 4,228

Fair Value Measurements (Reconc

Fair Value Measurements (Reconciliation of Liability) (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at beginning of period	$ 4,228	$ 5,407
Contingent consideration recognized for acquired business	0	9,100
Change in fair value of contingent consideration	5,772	259
Fair value at end of period	$ 10,000	$ 14,766

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Oct. 05, 2015	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Payment for contingent consideration		$ 5,772		$ 259
Fair Value, Inputs, Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value		10,000		$ 14,766		$ 4,228	$ 5,407
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
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
Contingent Consideration | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value		10,000				4,228
Bluenica Corporation
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Earn-out payment installment period	4 years
Bluenica Corporation | Contingent Consideration
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Payment for contingent consideration			$ 2,900
Accelerated | Contingent Consideration
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Payment for contingent consideration			2,400		$ 3,500
Opengear | Contingent Consideration
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Payment for contingent consideration			$ 900
Estimate of Fair Value Measurement | Contingent Consideration | Fair Value, Measurements, Recurring
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value		10,000				$ 4,228
Estimate of Fair Value Measurement | Opengear | Contingent Consideration | Fair Value, Measurements, Recurring
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value		$ 10,000

Goodwill and Other Identifiab_3

Goodwill and Other Identifiable Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Sep. 30, 2020
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 225,926		$ 225,059
Accumulated amortization	(108,534)		(103,811)
Net	117,392		121,248
Amortization expense	3,961	$ 2,448
Purchased and Core Technology
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	76,473		76,011
Accumulated amortization	(57,017)		(55,482)
Net	19,456		20,529
License Agreements
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	112		112
Accumulated amortization	(112)		(112)
Net	0		0
Patents and Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	22,936		22,836
Accumulated amortization	(13,968)		(13,535)
Net	8,968		9,301
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	125,805		125,500
Accumulated amortization	(36,957)		(34,232)
Net	88,848		91,268
Non-compete Agreements
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	600		600
Accumulated amortization	(480)		(450)
Net	120		$ 150
Cost of Sales and General and Administrative Expense
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 4,000	$ 2,400

Goodwill and Other Identifiab_4

Goodwill and Other Identifiable Intangible Assets, Net (Additional Information) (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2020USD ($)segment	Sep. 30, 2020USD ($)	Jun. 30, 2020USD ($)
Goodwill [Line Items]
Goodwill	$ 212,366	$ 210,135
Market Capitalization			$ 338,200
Number of Reportable Segments | segment	2
IoT Products & Services Segment
Goodwill [Line Items]
Goodwill			157,100
IoT Solutions Segment
Goodwill [Line Items]
Goodwill			$ 49,600
IoT Products & Services Segment
Goodwill [Line Items]
Goodwill	$ 162,045	160,365
IoT Solutions Segment
Goodwill [Line Items]
Goodwill	$ 50,321	$ 49,770
Control Premium | Minimum
Goodwill [Line Items]
Goodwill Valuation Implied Control Premium			17.00%
Control Premium | Maximum
Goodwill [Line Items]
Goodwill Valuation Implied Control Premium			29.10%

Goodwill and Other Identifiab_5

Goodwill and Other Identifiable Intangible Assets, Net (Amortization Expense) (Details) $ in Thousands	Dec. 31, 2020USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2021 (nine months)	$ 11,616
2022	14,720
2023	12,518
2024	11,815
2025	8,358
2026	$ 8,126

Goodwill and Other Identifiab_6

Goodwill and Other Identifiable Intangible Assets, Net (Goodwill Rollforward) (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2020USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 210,135
Adjustment (see Note 2)	846
Foreign currency translation adjustment	1,385
Ending balance	212,366
IoT Solutions Segment
Goodwill [Roll Forward]
Beginning balance	49,770
Adjustment (see Note 2)	0
Foreign currency translation adjustment	551
Ending balance	50,321
IoT Products & Services Segment
Goodwill [Roll Forward]
Beginning balance	160,365
Adjustment (see Note 2)	846
Foreign currency translation adjustment	834
Ending balance	$ 162,045

Indebtedness - Schedule of Long

Indebtedness - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Debt Instrument [Line Items]
Total loans	$ 47,500
Less unamortized issuance costs	(2,045)
Less current maturities of long-term debt	(1,972)	$ (1,972)
Total long-term debt, net of current portion	43,483
Term loan
Debt Instrument [Line Items]
Total loans	$ 47,500

Debt Schedule of Maturities of

Debt Schedule of Maturities of Long-term Debt (Details) $ in Thousands	Dec. 31, 2020USD ($)
Debt Disclosure [Abstract]
2021 (nine months)	$ 1,875
2022	3,438
2023	3,750
2024	4,687
2025	33,750
Total long-term debt	$ 47,500

Indebtedness - Narrative (Detai

Indebtedness - Narrative (Details) - USD ($) $ in Thousands	2 Months Ended
	Jun. 30, 2020	Dec. 31, 2020	Dec. 13, 2019
Line of Credit Facility [Line Items]
Revolving loan maximum borrowing capacity			$ 150,000
Weighted average interest rate on debt		0.60%
Debt issuance costs			2,600
LIBOR | Maximum
Line of Credit Facility [Line Items]
Debt instrument, margin spread on LIBOR Rate	3.25%
LIBOR | Minimum
Line of Credit Facility [Line Items]
Debt instrument, margin spread on LIBOR Rate	1.25%
Term loan
Line of Credit Facility [Line Items]
Revolving loan maximum borrowing capacity			50,000
Revolving loan
Line of Credit Facility [Line Items]
Revolving loan maximum borrowing capacity			$ 100,000
Year one | Term loan
Line of Credit Facility [Line Items]
Amortization percentage of quarterly installments			5.00%
Year two | Term loan
Line of Credit Facility [Line Items]
Amortization percentage of quarterly installments			5.00%
Year three | Term loan
Line of Credit Facility [Line Items]
Amortization percentage of quarterly installments			7.50%
Year four | Term loan
Line of Credit Facility [Line Items]
Amortization percentage of quarterly installments			7.50%
Year five | Term loan
Line of Credit Facility [Line Items]
Amortization percentage of quarterly installments			10.00%

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2020USD ($)segmentnumberOfOperatingSegments	Dec. 31, 2019USD ($)
Segment Reporting Information [Line Items]
Number of Reportable Segments | segment	2
Total Revenue	$ 73,146	$ 62,317
Gross Profit	41,019	30,464
Operating income (loss)	(146)	(483)
Depreciation and amortization	$ 5,050	3,617
IoT Products & Services Segment
Segment Reporting Information [Line Items]
Number of Operating Segments | numberOfOperatingSegments	4
Total Revenue	$ 61,780	54,613
Gross Profit	35,679	26,651
Operating income (loss)	1,269	4,397
Depreciation and amortization	3,134	1,706
IoT Solutions Segment
Segment Reporting Information [Line Items]
Total Revenue	11,366	7,704
Gross Profit	5,340	3,813
Operating income (loss)	(1,415)	(4,880)
Depreciation and amortization	$ 1,916	$ 1,911

Segment Information Expended fo

Segment Information Expended for Property, Plant and Equipment (Details) - USD ($) $ in Thousands		3 Months Ended
		Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Expended of property, equipment, improvements and certain other intangible assets		$ 777	$ 196
Inventory Transfer To Property, Plant And Equipment		882	186
IoT Products & Services Segment
Segment Reporting Information [Line Items]
Expended of property, equipment, improvements and certain other intangible assets		777	190
IoT Solutions Segment
Segment Reporting Information [Line Items]
Expended of property, equipment, improvements and certain other intangible assets	[1]	$ 0	$ 6
[1]	* Excluded from this amount is $882 and $186 of transfers of inventory to property plant and equipment for subscriber assets for the three months ended December 31, 2020 and 2019, respectively.

Segment Information Total Asset

Segment Information Total Assets (Details) - USD ($) $ in Thousands		Dec. 31, 2020	Sep. 30, 2020
Segment Reporting, Asset Reconciling Item [Line Items]
Assets		$ 528,788	$ 528,682
IoT Products & Services Segment
Segment Reporting, Asset Reconciling Item [Line Items]
Assets		394,315	387,578
IoT Solutions Segment
Segment Reporting, Asset Reconciling Item [Line Items]
Assets		85,210	86,975
Unallocated
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	[1]	$ 49,263	$ 54,129
[1]	Unallocated consists of cash and cash equivalents.

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Total Revenue	$ 73,146	$ 62,317
North America, primarily the United States
Disaggregation of Revenue [Line Items]
Total Revenue	54,018	47,536
Europe, Middle East & Africa
Disaggregation of Revenue [Line Items]
Total Revenue	10,536	8,516
Rest of world
Disaggregation of Revenue [Line Items]
Total Revenue	8,592	6,265
Transferred at a point in time
Disaggregation of Revenue [Line Items]
Total Revenue	64,188	56,300
Transferred over time
Disaggregation of Revenue [Line Items]
Total Revenue	$ 8,958	$ 6,017

Revenue - Additional Informatio

Revenue - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Period of amortization	3 years
Amortization	$ 0.5	$ 0.3
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Disaggregation of Revenue [Line Items]
Remaining performance obligation, period	12 months
Equipment
Disaggregation of Revenue [Line Items]
Contract assets	$ 2.4		$ 2

Revenue - Unearned Revenue (Det

Revenue - Unearned Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Unearned Revenue [Roll Forward]
Unearned revenue, beginning of period	$ 9,341	$ 5,025
Billings	14,267	9,847
Revenue recognized	(10,542)	(8,070)
Unearned revenue, end of period	$ 13,066	$ 6,802

Revenue - Performance Obligatio

Revenue - Performance Obligations (Details) $ in Millions	Dec. 31, 2020USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 13.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 9.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, period	12 months
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, period	2 years
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, period	7 years

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income tax benefit	$ 433	$ 1,128
Income tax benefit specific to the period	$ 300	$ 1,000

Income Taxes (Unrecognized Tax

Income Taxes (Unrecognized Tax Benefits) (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2020USD ($)
Unrecognized tax benefits that would impact effective tax rate	$ 2,400
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, beginning balance	2,600
Decreases related to expiration of statute of limitations	(54)
Unrecognized tax benefits, ending balance	2,546
Maximum
Unrecognized tax benefits that would decrease next twelve months	$ 100

Product Warranty Obligation (De

Product Warranty Obligation (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 942	$ 1,012
Warranties issued	123	74
Settlements made	(100)	(87)
Ending balance	$ 965	$ 999

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Assets and Liabilities, Lessee [Abstract]
Operating lease other non-current asset	$ 16,665	$ 14,334
Total lease assets	16,665	14,334
Operating lease other current liabilities	2,776	2,527
Operating lease other non-current liability	19,371	16,193
Total lease liabilities	$ 22,147	$ 18,720

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Lease, Cost [Abstract]
Operating lease cost	$ 861	$ 814
Variable lease cost	268	23
Short-term Lease, Cost	32	38
Total lease cost	$ 1,161	$ 875

Leases - Other Information (Det

Leases - Other Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Weighted Average Discount Rate Leases [Abstract]
Weighted average discount rate - operating leases	4.60%
Weighted average remaining lease term [Abstract]
Weighted average remaining lease term- operating leases	6 years 3 months 18 days
Cash paid for leases [Abstract]
Right-of-use assets obtained in exchange for new operating lease liability	$ 2,892	$ 0
Right Of Use Asset Obtained In Exchange for Lease Liability [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	911	416
Non-cash Tenant Improvement Allowance [Abstract]
Tenant improvement allowance	$ 1,000	$ 0

Leases - Maturity of Operating

Leases - Maturity of Operating Lease Liability (Details) $ in Thousands	Dec. 31, 2020USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
Remainder of 2021	$ 2,798
2022	3,412
2023	3,148
2024	2,919
2025	2,821
2026	2,591
Thereafter	9,266
Total future undiscounted lease payments	26,955
Less imputed interest	(4,808)
Total reported lease liability	$ 22,147

Restructuring (Details)

Restructuring (Details) - UNITED STATES - Q1 FY2021 Restructuring $ in Thousands	Oct. 07, 2020USD ($)employee	Dec. 31, 2020USD ($)
Employee Severance
Restructuring Reserve [Roll Forward]
Restructuring Charge		$ 733
IoT Products & Services Segment
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Number of Positions Eliminated | employee	19
IoT Products & Services Segment | Employee Severance
Restructuring Reserve [Roll Forward]
Restructuring Reserve		0
Restructuring Charge	$ 700
Payments		(510)
Foreign currency fluctuation		(27)
Restructuring Reserve		$ 196

Contingencies Contingencies (De

Contingencies Contingencies (Details) $ in Millions	3 Months Ended
	Dec. 31, 2020CAD ($)
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, 2020	Dec. 31, 2019	Jan. 29, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from Stock Options Exercised	$ 3,944	$ 4,160
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	83,928	88,723
Tax withholding for share-based compensation	$ 1,400	$ 1,600
Total intrinsic value of all options exercised	2,200	3,000
Proceeds from employee stock purchase plan transactions	334	286
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from Stock Options Exercised	3,900	$ 4,200
Total unrecognized compensation cost nonvested awards	$ 7,900
Weighted average period, unrecognized compensation cost, nonvested awards	3 years 1 month 6 days
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost nonvested restricted stock units	$ 12,300
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]
Number of shares authorized			3,425,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Continuous Days of Service	90 days
Share-based Compensation Arrangement by Share-based Payment Award, Number of Hours Per Week Employed	20 hours
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	85.00%
Share-based Compensation Arrangement by Share-based Payment Award, Offering Period	3 months
Common shares issued to employees	25,246	24,738
Shares available for future issuance	686,468
Proceeds from employee stock purchase plan transactions	$ 300	$ 286
The 2020 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	648,815
The 2020 Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Expiration period	7 years
Director | The 2020 Plan | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Executives and Employees | The 2020 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, 2020	Dec. 31, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 1,745	$ 1,600
Income tax benefit	(365)	(332)
Stock-based compensation after income taxes	1,380	1,268
Cost of Sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	82	64
Sales and Marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	525	431
Research and Development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	210	294
General and Administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 928	$ 811

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, 2020USD ($)$ / sharesshares
Options Outstanding [Roll Forward]
Options Outstanding, Beginning Balance (in shares) | shares	3,393
Options Outstanding, Granted (in shares) | shares	418
Options Outstanding, Exercised (in shares) | shares	(357)
Options Outstanding, Forfeited / Canceled (in shares) | shares	(69)
Options Outstanding, Ending Balance (in shares) | shares	3,385
Options Outstanding, Exercisable (in shares) | shares	1,983
Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price, Beginning Balance	$ 12.20
Weighted Average Exercise Price, Granted	16.91
Weighted Average Exercise Price, Exercised	11.06
Weighted Average Exercise Price, Forfeited / Canceled	14.17
Weighted Average Exercise Price, Ending Balance	12.86
Weighted Average Exercise Price, Exercisable	$ 11.28
Weighted Average Remaining Contractual Term [Abstract]
Weighted Average Remaining Contractual Term, Outstanding	4 years 2 months 12 days
Weighted Average Remaining Contractual Term, Exercisable	3 years 1 month 6 days
Aggregate Intrinsic Value, Outstanding | $	$ 20,433	[1]
Aggregate Intrinsic Value, Exercisable | $	$ 15,103	[1]
Closing Stock Price	$ 18.90
[1]	The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $18.90 as of December 31, 2020, 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, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average per option grant date fair value	$ 7.12	$ 6.56
Assumptions Used For Options Grants [Abstract]
Risk free interest rate, minimum	0.51%	1.67%
Risk free interest rate, maximum	0.54%	1.73%
Expected term	6 years	6 years
Expected volatility rate, maximum	44.00%	36.00%
Weighted average volatility	44.00%	36.00%
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, 2020$ / sharesshares
Nonvested Number of Restricted Stock Units [Roll Forward]
Number of Restricted Stock Units, Beginning Balance | shares	972
Number of Restricted Stock Units, Granted | shares	254
Number of Restricted Stock Units, Vested | shares	(221)
Number of Restricted Stock Units, Canceled | shares	(46)
Number of Restricted Stock Units, Ending Balance | shares	959
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	$ 13.20
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Granted | $ / shares	16.95
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested | $ / shares	12.93
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Canceled | $ / shares	13.16
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance | $ / shares	$ 14.26