Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Jun. 30, 2014 | Aug. 01, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'VITESSE SEMICONDUCTOR CORP | ' |
Entity Central Index Key | '0000880446 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Common Stock, Shares Outstanding | ' | 67,697,535 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash | $70,812 | $68,863 |
Accounts receivable | 10,101 | 9,807 |
Inventory, net | 11,237 | 10,692 |
Restricted cash | 793 | 101 |
Prepaid expenses and other current assets | 2,175 | 1,796 |
Total current assets | 95,118 | 91,259 |
Property, plant and equipment, net | 2,944 | 3,107 |
Other intangible assets, net | 1,569 | 1,170 |
Other assets | 3,548 | 3,425 |
Total Assets | 103,179 | 98,961 |
Current liabilities: | ' | ' |
Accounts payable | 7,693 | 7,436 |
Accrued expenses and other current liabilities | 12,060 | 12,245 |
Current portion of debt, net | 32,375 | 0 |
Deferred revenue | 3,030 | 2,215 |
Total current liabilities | 55,158 | 21,896 |
Other long-term liabilities | 470 | 407 |
Long-term debt, net | 16,328 | 16,366 |
Convertible subordinated debt, net | 0 | 44,384 |
Total liabilities | 71,956 | 83,053 |
Commitments and contingencies (Note 10) | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, $0.01 par value: 10,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value: 250,000 shares authorized; 67,342 and 57,545 shares outstanding at June 30, 2014 and September 30, 2013, respectively | 673 | 575 |
Additional paid-in-capital | 1,922,468 | 1,891,661 |
Accumulated deficit | -1,891,918 | -1,876,328 |
Total stockholders’ equity | 31,223 | 15,908 |
Total Liabilities and Stockholders' Deficit | $103,179 | $98,961 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares outstanding | 67,341,895 | 57,545,025 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net revenues: | ' | ' | ' | ' |
Product revenues | $26,012 | $26,285 | $75,744 | $74,879 |
Intellectual property revenues | 1,139 | 133 | 4,082 | 2,019 |
Net revenues | 27,151 | 26,418 | 79,826 | 76,898 |
Costs and expenses: | ' | ' | ' | ' |
Cost of product revenues | 12,254 | 11,666 | 33,909 | 34,010 |
Engineering, research and development | 10,006 | 11,706 | 31,581 | 31,987 |
Selling, general and administrative | 7,330 | 7,257 | 23,189 | 22,617 |
Amortization of intangible assets | 88 | 80 | 267 | 266 |
Costs and expenses | 29,678 | 30,709 | 88,946 | 88,880 |
Loss from operations | -2,527 | -4,291 | -9,120 | -11,982 |
Other expense (income): | ' | ' | ' | ' |
Interest expense, net | 1,510 | 1,983 | 4,706 | 5,919 |
Gain on compound embedded derivative | 0 | 0 | 0 | -803 |
Loss on extinguishment of debt | 0 | 0 | 1,594 | 0 |
Other expense, net | 18 | 31 | 111 | 5 |
Other expense, net | 1,528 | 2,014 | 6,411 | 5,121 |
Loss before income tax expense (benefit) | -4,055 | -6,305 | -15,531 | -17,103 |
Income tax expense (benefit) | 333 | 129 | 59 | -790 |
Net loss | ($4,388) | ($6,434) | ($15,590) | ($16,313) |
Net loss per common share - basic and diluted (in dollars per share) | ($0.07) | ($0.17) | ($0.27) | ($0.47) |
Weighted average common shares outstanding - basic and diluted | 59,965 | 38,630 | 58,631 | 34,601 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (USD $) | Total | Common Stock [Member] | Additional Paid-in-Capital [Member] | Accumulated Deficit [Member] | Total Stockholders' Equity |
In Thousands, except Share data, unless otherwise specified | |||||
Balance at Sep. 30, 2013 | $15,908 | $575 | $1,891,661 | ($1,876,328) | $15,908 |
Balance (in shares) at Sep. 30, 2013 | ' | 57,545,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net loss | -15,590 | ' | ' | ' | -15,590 |
Compensation expense related to stock options, awards and Employee Stock Purchase Plan | ' | ' | 4,466 | ' | 4,466 |
Stock Issued During Period, Shares, Exercise of Stock Options | ' | 49,000 | ' | ' | ' |
Adjustments to Additional Paid in Capital, Share-based Compensation, Stock Options, Issuance of Common Stock Upon Exercise | ' | ' | 114 | ' | 114 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | ' | 366,000 | ' | ' | ' |
Stock Issued During Period, Value, Employee Stock Purchase Plan | ' | 4 | 905 | ' | 909 |
Issuance of common stock, net of offering costs (in shares) | ' | 8,582,000 | ' | ' | ' |
Issuance of common stock, net of offering costs | ' | 86 | 26,519 | ' | 26,605 |
Release of restricted stock units (in shares) | ' | 1,179,000 | ' | ' | ' |
Release of restricted stock units | ' | 12 | -12 | ' | ' |
Repurchase and retirement of restricted stock units for payroll taxes (in shares) | ' | -379,000 | ' | ' | ' |
Repurchase and retirement of restricted stock units for payroll taxes | ' | -4 | -1,247 | ' | -1,251 |
Other | ' | ' | 62 | ' | 62 |
Balance at Jun. 30, 2014 | $31,223 | $673 | $1,922,468 | ($1,891,918) | $31,223 |
Balance (in shares) at Jun. 30, 2014 | ' | 67,342,000 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows used in operating activities: | ' | ' |
Net loss | ($15,590) | ($16,313) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 1,541 | 1,877 |
Stock-based compensation | 4,466 | 3,305 |
Change in fair value of compound embedded derivative liability | 0 | -803 |
Gain on disposal of assets | -137 | -153 |
Loss on extinguishment of debt, net | 1,594 | 0 |
Amortization of debt issuance costs | 143 | 203 |
Amortization of debt discounts | 1,365 | 1,890 |
Accretion of debt premiums | -15 | -126 |
Change in operating assets and liabilities: | ' | ' |
Accounts receivable | -294 | -1,001 |
Inventory | -545 | 179 |
Prepaids and other assets | -724 | -841 |
Accounts payable | 57 | 2,639 |
Accrued expenses and other liabilities | -278 | 553 |
Deferred revenue | 815 | 1,888 |
Net cash used in operating activities | -7,602 | -6,703 |
Cash flows used in investing activities: | ' | ' |
Capital expenditures | -1,157 | -575 |
Proceeds from sale of fixed assets | 183 | 156 |
Payments under licensing agreements | -510 | -342 |
Net cash used in investing activities | -1,484 | -761 |
Cash flows provided by financing activities: | ' | ' |
Proceeds from the exercise of stock options and issuance of shares under ESPP | 1,023 | 866 |
Net proceeds from the sale of common stock | 26,805 | 54,668 |
Repurchase of 2014 Debentures | -14,606 | 0 |
Consent fee on amendment of credit agreement | -308 | 0 |
Increase (Decrease) in Restricted Cash and Investments | -687 | 0 |
Repurchase and retirement of restricted stock units for payroll taxes | -1,251 | -620 |
Other | 59 | -6 |
Net cash provided by financing activities | 11,035 | 54,908 |
Net increase in cash | 1,949 | 47,444 |
Cash at beginning of period | 68,863 | 23,891 |
Cash at end of period | 70,812 | 71,335 |
Cash paid (refunded) during the period for: | ' | ' |
Interest | 4,471 | 4,917 |
Income taxes | 180 | -1,094 |
Non-cash investing and financing activities: | ' | ' |
Equity offering costs incurred but not paid | 200 | 207 |
Licensing agreement obligation incurred but not paid | 156 | 0 |
Reclassification of compound embedded derivative liability to additional paid-in-capital | $0 | $2,096 |
THE_COMPANY_AND_ITS_SIGNIFICAN
THE COMPANY AND ITS SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
THE COMPANY AND ITS SIGNIFICANT ACCOUNTING POLICIES | ' |
THE COMPANY AND ITS SIGNIFICANT ACCOUNTING POLICIES | |
Description of Business | |
Vitesse Semiconductor Corporation (“Vitesse,” the “Company,” “us,” or “we”) is a leading supplier of high-performance integrated circuits (“ICs”) that are used primarily by manufacturers of networking systems for Carrier, Enterprise and Internet of Things (“IoT”) networking applications. Vitesse designs, develops and markets a diverse portfolio of high-performance, low-power and cost-competitive semiconductor products for these applications. | |
Vitesse was incorporated in the state of Delaware in 1987. Our headquarters are located at 4721 Calle Carga, Camarillo, California, and our phone number is (805) 388-3700. Our stock trades on the NASDAQ Global Market under the ticker symbol VTSS. | |
Fiscal Year | |
Our fiscal year is October 1 through September 30. | |
Basis of Presentation | |
The interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Securities and Exchange Commission (“SEC”) Form 10-Q and Article 10 of SEC Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. The September 30, 2013 balance sheet data was derived from audited consolidated financial statements, but does not include all disclosures required for annual periods. Therefore, these financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended September 30, 2013, included in our Annual Report on Form 10-K filed with the SEC on December 5, 2013. | |
The consolidated financial statements included herein are unaudited. However, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly our consolidated financial position, the consolidated results of our operations and the consolidated cash flows and the changes in our stockholders’ equity. The results of operations for the three and nine months ended June 30, 2014 are not necessarily indicative of the results to be expected for future quarters or the full year. | |
Reclassifications | |
Certain reclassifications have been made to prior fiscal year amounts and related footnotes to conform to current fiscal year presentation with no changes to stockholders’ equity amounts or net loss for the three and nine months ended June 30, 2013. | |
Use of Estimates | |
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the unaudited consolidated financial statements. Management regularly evaluates estimates and assumptions related to revenue recognition, allowances for doubtful accounts, warranty reserves, inventory valuation reserves, stock-based compensation, compound embedded derivative valuation, purchased intangible asset valuations and useful lives, asset retirement obligations, and deferred income tax asset valuation allowances. These estimates and assumptions are based on current facts, historical experience and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The actual results we experience may differ materially and adversely from our original estimates. To the extent there are material differences between the estimates and the actual results, our future results of operations will be affected. | |
Risks and Uncertainties | |
Our future results of operations involve a number of risks and uncertainties. Factors that could affect our business or future results and cause actual results to vary materially from historical results include, but are not limited to, the highly cyclical nature of the semiconductor industry; our high fixed costs; declines in average selling prices; decisions by our IC manufacturer customers to curtail outsourcing; our substantial indebtedness; our ability to fund liquidity needs; our failure to maintain an effective system of internal controls; product return and liability risks; the absence of significant backlog in our business; our dependence on international operations and sales; proposed changes to United States tax laws; that our management information systems may prove inadequate; our ability to attract and retain qualified employees; difficulties consolidating and evolving our operational capabilities; our dependence on materials and equipment suppliers; our loss of customers; adverse tax consequences; the development of new proprietary technology and the enforcement of intellectual property rights by or against us; the complexity of packaging and test processes in our industry; competition; our need to comply with existing and future environmental regulations; and fire, flood or other calamity affecting us or others with whom we do business. | |
Recent Accounting Pronouncements | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017. | |
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, A Similar Tax Loss, or a Tax Credit Carryforward Exists (A Consensus the FASB Emerging Issues Task Force). ASU 2013-11 provides guidance on financial statement presentation of unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The FASB’s objective in issuing this ASU is to eliminate diversity in practice resulting from a lack of guidance on this topic in current U.S. GAAP. This ASU applies to all entities with unrecognized tax benefits that also have tax loss or tax credit carryforwards in the same tax jurisdiction as of the reporting date. This amendment is effective for public entities for fiscal years beginning after December 15, 2013, and interim periods within those years. We do not expect the adoption of this standard to have a material impact on our unaudited consolidated financial position and results of operations. |
COMPUTATION_OF_NET_LOSS_PER_SH
COMPUTATION OF NET LOSS PER SHARE | 9 Months Ended | |||||
Jun. 30, 2014 | ||||||
Earnings Per Share [Abstract] | ' | |||||
COMPUTATION OF NET LOSS PER SHARE | ' | |||||
COMPUTATION OF NET LOSS PER SHARE | ||||||
For the three and nine months ended June 30, 2014 and 2013, we recorded a net loss. As such, all outstanding potential common shares were excluded from the diluted earnings per share computation. | ||||||
The following potentially dilutive common shares are excluded from the computation of net loss per share. | ||||||
June 30, | ||||||
2014 | 2013 | |||||
(in thousands) | ||||||
Outstanding stock options | 2,964 | 2,110 | ||||
Outstanding restricted stock units | 2,377 | 2,031 | ||||
Employee Stock Purchase Plan shares | 355 | 518 | ||||
Convertible preferred stock | — | 674 | ||||
2014 Debentures | 7,298 | 10,332 | ||||
Term B Loan | 1,887 | 1,887 | ||||
Total potential common shares excluded from calculation | 14,881 | 17,552 | ||||
INVENTORY
INVENTORY | 9 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
INVENTORY | ' | |||||||
INVENTORY, NET | ||||||||
June 30, | September 30, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Raw materials | $ | 1,110 | $ | 1,220 | ||||
Work-in-process | 5,296 | 3,652 | ||||||
Finished goods | 4,831 | 5,820 | ||||||
Total inventory, net | $ | 11,237 | $ | 10,692 | ||||
DEBT
DEBT | 9 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
DEBT | ' | |||||||||||
DEBT | ||||||||||||
June 30, | September 30, | |||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Term A Loan, bearing interest at 9.0% and 10.5% as of June 30, 2014 and September 30, 2013, respectively, due August 2016 | $ | 7,783 | $ | 7,919 | ||||||||
Term B Loan, convertible, bearing interest at 9.0% and 8.0% as of June 30, 2014 and September 30, 2013, respectively, due August 2016 | 8,545 | 8,444 | ||||||||||
Other | — | 3 | ||||||||||
Long-term debt, net | 16,328 | 16,366 | ||||||||||
2014 Debentures, convertible, 8.0% fixed-rate notes, due October 2014 | 32,375 | 44,384 | ||||||||||
Total debt, net | $ | 48,703 | $ | 60,750 | ||||||||
Additional information about our debt is as follows: | ||||||||||||
Term A Loan | Term B Loan | 2014 Debentures | ||||||||||
(in thousands) | ||||||||||||
Principal | $ | 7,857 | $ | 9,342 | $ | 32,843 | ||||||
Unamortized debt discount | (74 | ) | (797 | ) | (468 | ) | ||||||
Carrying value | $ | 7,783 | $ | 8,545 | $ | 32,375 | ||||||
Interest payable terms | Quarterly, in arrears | Quarterly, in arrears | Semi-annually, in arrears | |||||||||
Annual effective interest rate | 9.5 | % | 13.5 | % | 12.2 | % | ||||||
Conversion rate per common share | n/a | $ | 4.95 | $ | 4.5 | |||||||
Our current debt is comprised of our convertible subordinated debentures (“2014 Debentures”). Our long-term debt is comprised of our senior term loans (the “Term A Loan” and “Term B Loan”, which we collectively refer to as our “Term A and B Loans”). | ||||||||||||
The credit agreements for the Term A and B Loans and 2014 Debentures provide that we must repurchase, at the option of the holders, indebtedness at its principal amounts plus accrued and unpaid interest upon the occurrence of a fundamental change involving us, as described in the agreements. Upon the occurrence of a fundamental change involving us, the holders of the 2014 Debentures and the Term B Loan may be entitled to receive a “make-whole premium” if they convert their 2014 Debentures or Term B Loan into common stock, payable in additional shares of common stock, if the trading price of our common stock is between $3.20 and $6.00 per share. During the three months ended June 30, 2014, cash of $0.7 million was restricted for payment of the 2014 Debentures following the sale of assets under the terms of the credit agreement. | ||||||||||||
On November 5, 2013, we amended the credit agreement for the Term A and B Loans (the “Amendment”). The Amendment extends the maturity dates of our outstanding Term A Loan and Term B Loan from February 4, 2014 and October 30, 2014, respectively, to August 31, 2016, and also provides that the Term A and B Loans will each bear interest in cash at 9.0% per annum payable quarterly in arrears. The Amendment provides us with a right to optionally prepay the Term A and B Loans in whole or in part, at any time and from time-to-time, subject to the payment of a prepayment fee. The prepayment fee is 5% of the aggregate principal amount repaid for prepayments made prior to October 30, 2014, 3% for prepayments made on or after October 30, 2014 but prior to October 30, 2015, and 2% for prepayments made on or after October 30, 2015. The credit agreement for the Term A and B Loans continues to require that we prepay the Term A and B Loans upon the occurrence of certain prepayment events, but the Amendment provides us with greater flexibility to sell assets and use the resulting proceeds for purposes other than repaying the Term A and B Loans after repayment of our 2014 Debentures. | ||||||||||||
The Amendment provides us with the right, so long as no event of default exists under the credit agreement for the Term A and B Loans, to purchase, repay, redeem, or defease any or all of the 2014 Debentures. In addition, the Amendment requires us to maintain an unrestricted cash balance of $8.0 million and achieve minimum quarterly revenues of $10.0 million. We were in compliance with all covenants as of June 30, 2014. | ||||||||||||
The credit agreement for the Term A and B Loans continues to provide the lenders with the right to convert the Term B Loan into shares of our common stock at a conversion price of $4.95 per share through October 30, 2014. After that date, the lenders will not have the right to convert the Term B Loan into common stock. | ||||||||||||
In connection with the Amendment, we paid the lenders a consent fee of $0.3 million which was recorded as a debt discount and will be amortized over the remaining term of the Term A and B Loans. Additionally, in connection with the Amendment we repurchased $13.7 million principal amount of our 2014 Debentures at 107% of the principal amount thereof plus accrued interest, which eliminated the potential issuance of approximately 3.0 million dilutive common shares. We recorded a loss on extinguishment of debt in the amount of $1.6 million related to the repurchase of the 2014 Debentures. After this transaction, $32.8 million principal amount of 2014 Debentures remain outstanding and are due on October 30, 2014. | ||||||||||||
Debt Maturities | ||||||||||||
Maturity of our total aggregated outstanding debt is as follows: | ||||||||||||
Fiscal Year | (in thousands) | |||||||||||
2014 | $ | — | ||||||||||
2015 | 32,843 | |||||||||||
2016 | 17,199 | |||||||||||
Total | $ | 50,042 | ||||||||||
Except for required repurchases upon a change in control or in the event of certain asset sales, as described in the applicable credit agreements, we are not required to make any sinking fund or redemption payments with respect to this debt. |
FAIR_VALUE_MEASUREMENTS_AND_DE
FAIR VALUE MEASUREMENTS AND DERIVATIVE LIABILITY | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS AND DERIVATIVE LIABILITY | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
We measure the fair value of our Term A and B Loans and 2014 Debentures, which are carried at amortized cost, on a quarterly basis for disclosure purposes. We use a binomial-lattice model to estimate fair values of these financial instruments. The estimated fair value of our Term A Loan is determined using Level 3 inputs based primarily on the comparability of its terms to the terms we could obtain, for similar instruments, in the current market. The key unobservable input utilized in the model for our Term B Loan and 2014 Debentures includes a discount rate of 4.1% and 3.3%, respectively. | ||||||||||||||||
The estimated fair values of our financial instruments are as follows: | ||||||||||||||||
June 30, 2014 | September 30, 2013 | |||||||||||||||
Carrying value | Fair value | Carrying value | Fair value | |||||||||||||
(in thousands) | ||||||||||||||||
Term A Loan | $ | 7,783 | $ | 8,840 | $ | 7,919 | $ | 8,165 | ||||||||
Term B Loan | 8,545 | 10,360 | 8,444 | 9,781 | ||||||||||||
2014 Debentures | 32,375 | 34,615 | 44,384 | 49,282 | ||||||||||||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
STOCKHOLDERS' EQUITY | ' |
STOCKHOLDERS’ EQUITY | |
Authorized Capital Stock | |
We are authorized to issue up to 250 million shares of common stock, par value $0.01, per share, of which 9.2 million shares are reserved for future potential issuance upon conversion of debt, 8.4 million shares of common stock have been reserved for issuance under our stock compensation plans, and 3.4 million shares of common stock are reserved for issuance under | |
our Employee Stock Purchase Plan (“ESPP”). | |
In June 2014, we raised $26.6 million, net of offering expenses of $2.1 million, from the registered public sale of 8,582,076 shares of common stock at $3.35 per share. |
STOCK_BASED_COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
STOCK BASED COMPENSATION | ' | ||||||||||||||||
STOCK BASED COMPENSATION | |||||||||||||||||
Stock Options | |||||||||||||||||
We have in effect one stock incentive plan, the 2013 Incentive Plan (the “Plan”), under which non-qualified stock options and restricted stock units have been granted to employees and non-employee directors. Under the Plan, we have 1.8 million shares available for future grant as of June 30, 2014. | |||||||||||||||||
Compensation cost related to our Plan and ESPP is as follows: | |||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in thousands) | |||||||||||||||||
Cost of revenues | $ | 210 | $ | 161 | $ | 619 | $ | 459 | |||||||||
Engineering, research and development | 573 | 428 | 1,643 | 1,193 | |||||||||||||
Selling, general and administrative | 803 | 567 | 2,204 | 1,653 | |||||||||||||
Total stock-based compensation expense | $ | 1,586 | $ | 1,156 | $ | 4,466 | $ | 3,305 | |||||||||
As of June 30, 2014, there was $7.2 million of unrecognized stock-based compensation expense related to non-vested stock options, restricted stock units and our ESPP. The weighted average period over which the unearned stock-based compensation for stock options and restricted stock units expected to be recognized is approximately 1.4 years and 1.9 years, respectively. Future stock-based compensation expense and unearned stock-based compensation will increase to the extent that we grant additional equity awards and our stock price increases. | |||||||||||||||||
Activity in stock option awards is as follows: | |||||||||||||||||
Shares (in thousands) | Weighted Average | Weighted Average | Aggregate | ||||||||||||||
Exercise Price | Remaining | Intrinsic Value (in thousands) | |||||||||||||||
Contractual Life (years) | |||||||||||||||||
Options outstanding, September 30, 2013 | 2,089 | $ | 13.43 | 6.67 | $ | 591 | |||||||||||
Granted | 1,014 | 2.53 | |||||||||||||||
Exercised | (49 | ) | 2.35 | ||||||||||||||
Cancelled or expired | (90 | ) | 86.22 | ||||||||||||||
Options outstanding, June 30, 2014 | 2,964 | 7.64 | 7.23 | 1,792 | |||||||||||||
Options exercisable, June 30, 2014 | 1,649 | $ | 11.67 | 5.85 | $ | 578 | |||||||||||
This intrinsic value represents the excess of the fair market value of our common stock on the date of exercise over the exercise price of such options. The aggregate intrinsic values in the preceding table for the options outstanding represent the total pretax intrinsic value, based on our closing stock price of $3.45 as of June 30, 2014, which would have been received by the option holders had those option holders exercised their in-the-money options as of those dates. There were 0.6 million in-the-money stock options that were exercisable as of June 30, 2014. | |||||||||||||||||
The per share fair values of time-based stock options granted in connection with stock incentive plans have been estimated using the following weighted average assumptions: | |||||||||||||||||
Nine Months Ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Expected life (in years) | 5.79 | 5.65 | |||||||||||||||
Expected volatility: | |||||||||||||||||
Weighted-average | 81.50% | 82.00% | |||||||||||||||
Range | 79.5% - 81.6% | 79.8% - 82.1% | |||||||||||||||
Expected dividend | — | — | |||||||||||||||
Risk-free interest rate | 1.7% - 1.9% | .9% - 1.0% | |||||||||||||||
The weighted average fair value at the date of grant of time-based options granted in the nine months ended June 30, 2014 and 2013 was $1.75 and $1.43, respectively. | |||||||||||||||||
On December 10, 2013, we granted 500,000 market-based stock options at an exercise price of $2.53 to executive officers. The market-based options vest if either of the following conditions is met prior to December 10, 2018: (i) the closing price of our common stock equals or exceeds twice the exercise price of $2.53 for 30 consecutive trading days; or (ii) a change in control occurs where the Company’s stockholders receive in consideration of their shares of common stock cash or other consideration with a value at least equal to twice the exercise price of $2.53. We evaluate stock awards with market conditions as to the probability that the market conditions will be met and estimate the date at which the market conditions will be met in order to properly recognize stock-based compensation expense over the requisite service period. We used the following assumptions to estimate the fair value of the options: expected life of 1.3 years, expected volatility of 80.0%, a zero dividend rate, and a risk-free rate of 2.79%. The market-based options had a grant date per share fair value of $1.86. | |||||||||||||||||
The following table provides additional information in regards to options outstanding as of June 30, 2014: | |||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Range of Exercise Price | Number Outstanding (in thousands) | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | Number Exercisable (in thousands) | Weighted Average Exercise Price | ||||||||||||
$2.10 - $2.26 | 424 | 8.68 | $ | 2.11 | 194 | $ | 2.1 | ||||||||||
2.53 | 987 | 9.45 | 2.53 | 116 | 2.53 | ||||||||||||
2.54 - 4.36 | 750 | 7.03 | 3.45 | 542 | 3.5 | ||||||||||||
4.60 - 41.20 | 594 | 5.08 | 7.89 | 588 | 7.91 | ||||||||||||
42.00 - 145.40 | 209 | 0.67 | 57.39 | 209 | 57.39 | ||||||||||||
$2.10 - $145.40 | 2,964 | 7.23 | $ | 7.64 | 1,649 | $ | 11.67 | ||||||||||
Restricted Stock Units | |||||||||||||||||
Activity for our restricted stock award units is as follows: | |||||||||||||||||
Restricted | Weighted Average | Weighted Average | Aggregate | ||||||||||||||
Stock Units (in thousands) | Grant-Date Fair | Remaining | Intrinsic Value (in thousands) | ||||||||||||||
Value per Share | Contractual Life (in | ||||||||||||||||
years) | |||||||||||||||||
Restricted stock units, September 30, 2013 | 2,021 | $ | 2.65 | 1.13 | $ | 6,143 | |||||||||||
Awarded | 1,600 | 2.62 | |||||||||||||||
Released | (1,179 | ) | 2.69 | ||||||||||||||
Forfeited | (65 | ) | 2.42 | ||||||||||||||
Restricted stock units, June 30, 2014 | 2,377 | $ | 2.62 | 1.21 | $ | 8,200 | |||||||||||
We issue restricted stock units as part of our equity incentive plans. For the majority of restricted stock units granted, the number of shares issued on the date the restricted stock units vest is net of the minimum statutory withholding requirements that we pay in cash to the appropriate taxing authorities on behalf of our employees. The impact of such withholding totaled $1.3 million and $0.6 million for the nine months ended June 30, 2014 and 2013, respectively, and was recorded as settlement on restricted stock tax withholding in the accompanying unaudited consolidated statements of stockholders’ equity. Although shares withheld are not issued, they are treated as common stock repurchases in our unaudited consolidated financial statements, as they reduce the number of shares that would have been issued upon vesting. | |||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
Pursuant to our ESPP, eligible employees may authorize payroll deductions of up to 15% of their regular base salary subject to certain limits to purchase shares at the lower of 85% of the fair market value of the common stock on the date of the commencement of the offering or on the last day of the 6-month offering period. On January 31, 2014, 0.4 million shares were issued at a price per share of $2.46, a 15% discount to the share price on August 1, 2013, the commencement date for the purchase period that ended January 31, 2014. On July 31, 2014, 0.4 million shares were issued at a price per share of $2.55, a 15% discount to the share price on July 31 2014, the last date of the purchase period. We recognized $0.5 million and $0.4 million of stock compensation expense under the ESPP during the nine months ended June 30, 2014 and 2013, respectively. We determine the fair value of the ESPP awards using the Black-Scholes pricing model. Underlying assumptions used were as follows: | |||||||||||||||||
Nine Months Ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Expected life (in years) | 0.5 | 0.5 | |||||||||||||||
Expected volatility | 37.1% - 50.3% | 47.6% - 49.8% | |||||||||||||||
Expected dividend | — | — | |||||||||||||||
Risk-free interest rate | 0.07% - 0.08% | 0.11% - 0.14% |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
The income tax expense (benefit) as a percentage of loss before income taxes was 0.4% for the nine months ended June 30, 2014 compared to (4.6)% for the comparable period in the prior year. Our income tax expense (benefit) is primarily impacted by foreign taxes, certain nondeductible interest and share based expenses. The income tax expense (benefit) is also impacted by the release of a portion of the valuation allowance related to certain foreign jurisdictions’ deferred tax assets as such balances were more likely than not realizable within the applicable carryforward period based on our analysis of the available positive and negative evidence. | |
At June 30, 2014, we had approximately $43.4 million, $33.0 million, and $133.2 million of federal, state, and foreign Net Operating Losses (“NOLs”), respectively, that can be used in future tax years. In December 2012, we issued 10.7 million shares of common stock in a public offering which resulted in a Section 382 ownership change. In general, a Section 382 ownership change occurs if there is a cumulative change in our ownership by “5%” shareholders (as defined in the Internal Revenue Code of 1986, as amended) that exceeds 50 percentage points over a rolling three-year period. An ownership change generally affects the rate at which NOLs and potentially other deferred tax assets are permitted to offset future taxable income. Of our federal NOL amount as of June 30, 2014, $28.1 million is subject to an annual Section 382 limitation of $1.4 million due to the December 2012 ownership change. Since we maintain a full valuation allowance on all of our U.S. and state deferred tax assets, the impact of the ownership change on the future realizability of our U.S. and state deferred tax assets did not result in an impact to our provision for income taxes for the nine months ended June 30, 2014, or on our net deferred tax asset as of June 30, 2014. | |
If an additional ownership change occurs in the future, our ability to utilize our NOL carryforwards and other deferred tax assets to offset future taxable income may be further limited and the value and recoverability of our NOLs and other deferred tax assets could be further diminished. |
SEGMENT_AND_GEOGRAPHIC_INFORMA
SEGMENT AND GEOGRAPHIC INFORMATION | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
SEGMENT AND GEOGRAPHIC INFORMATION | ' | |||||||||||||||
SIGNIFICANT CUSTOMERS, CONCENTRATION OF CREDIT RISK AND GEOGRAPHIC INFORMATION | ||||||||||||||||
We manage and operate our business through one operating segment. | ||||||||||||||||
Net revenues from customers that were equal to or greater than 10% of total net revenues are as follows: | ||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Tellabs | * | 10.3 | % | * | * | |||||||||||
WPG Holdings** | 26.6 | % | 19.2 | % | 24.5 | % | 16.4 | % | ||||||||
__________________________________________________ | ||||||||||||||||
*Less than 10% of total net revenues for period indicated. | ||||||||||||||||
**Distributor | ||||||||||||||||
Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of cash and accounts receivable. Cash consists of demand deposits maintained with several financial institutions, which often exceed Federal Deposit Insurance Corporation limits of $250,000. We have never experienced any losses related to these balances; however, our balances are significantly in excess of insured limits. | ||||||||||||||||
At June 30, 2014, there was one customer that accounted for 16.8% of accounts receivable. At September 30, 2013, there were two customers that accounted for 23.8% of accounts receivable. We believe that this concentration and the concentration of credit risk resulting from trade receivables owing from high-technology industry customers is substantially mitigated by our credit evaluation process, relatively short collection periods and maintaining an allowance for anticipated losses. We generally do not require collateral security for outstanding amounts. | ||||||||||||||||
Net revenues by geographic area are as follows: | ||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
United States | $ | 5,936 | $ | 5,590 | $ | 17,356 | $ | 23,693 | ||||||||
Asia Pacific | 17,606 | 16,856 | 52,272 | 42,957 | ||||||||||||
Europe, Middle East and Africa | 3,609 | 3,972 | 10,198 | 10,248 | ||||||||||||
Total net revenues | $ | 27,151 | $ | 26,418 | $ | 79,826 | $ | 76,898 | ||||||||
Revenues by geographic area are based upon the country of billing. The geographic location of distributors and third-party manufacturing service providers may be different from the geographic location of the ultimate end users. | ||||||||||||||||
We believe a substantial portion of the products billed to original equipment manufacturers (“OEMs”) and third-party manufacturing service providers in the Asia Pacific region are ultimately shipped to end-markets in the United States and Europe. | ||||||||||||||||
We also classify our product revenues based on our three product lines: (i) Connectivity; (ii) Ethernet switching; and (iii) Transport processing. Product revenues by product line are as follows: | ||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Connectivity | $ | 10,132 | $ | 12,199 | $ | 29,556 | 32,172 | |||||||||
Ethernet switching | 14,001 | 9,541 | 36,955 | 28,178 | ||||||||||||
Transport processing | 1,879 | 4,545 | 9,233 | 14,529 | ||||||||||||
Product revenues | $ | 26,012 | $ | 26,285 | $ | 75,744 | $ | 74,879 | ||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||||||
Operating Leases and Software Licenses | ||||||||||||||||||||||||||||
We lease facilities under non-cancellable operating leases. The leases expire at various dates through fiscal year 2017 and frequently include renewal provisions for varying periods of time, provisions which require us to pay taxes, insurance, maintenance costs, or provisions for minimum rent increases. Minimum leases payments, including scheduled rent increases are recognized as rent expenses on a straight line basis over the applicable lease term. Lease incentives received are recognized as a reduction of rental expense on a straight-line basis over the term of the lease. | ||||||||||||||||||||||||||||
Software license commitments represent non-cancellable licenses of intellectual property from third‑parties used in the development of our products. | ||||||||||||||||||||||||||||
Future minimum lease payments under non-cancellable operating leases that have remaining non-cancellable lease terms in excess of one year and software licenses are as follows: | ||||||||||||||||||||||||||||
Remaining in 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Operating leases | $ | 559 | $ | 1,952 | $ | 591 | $ | 110 | $ | — | $ | — | $ | 3,212 | ||||||||||||||
Software licenses | 1,684 | 7,136 | 3,147 | 2,900 | 2,800 | — | 17,667 | |||||||||||||||||||||
Total | $ | 2,243 | $ | 9,088 | $ | 3,738 | $ | 3,010 | $ | 2,800 | $ | — | $ | 20,879 | ||||||||||||||
Litigation | ||||||||||||||||||||||||||||
From time-to-time, we are involved in legal proceedings in the ordinary course of business, including actions against us which assert or may assert claims or seek to impose fines and penalties in substantial amounts. Although the ultimate outcome of these matters cannot be determined, we believe that as of June 30, 2014, the final disposition of any such proceedings will not have a material adverse effect on our financial position, results of operations, or liquidity. Related legal defense costs are expensed | ||||||||||||||||||||||||||||
as incurred. | ||||||||||||||||||||||||||||
Guarantees and Indemnities | ||||||||||||||||||||||||||||
During our normal course of business, we make certain contractual guarantees and indemnities pursuant to which we may be required to make future payments under specific circumstances. We review our exposure under these agreements no less than annually, or more frequently when events indicate. Except for our established warranty reserves, we do not expect that any potential payments in connection with any of these indemnity obligations would have a material adverse effect on our consolidated financial position. Accordingly, except for established warranty reserves, we have not recorded any liabilities for these agreements as of June 30, 2014 and September 30, 2013. | ||||||||||||||||||||||||||||
Warranties | ||||||||||||||||||||||||||||
We establish reserves for future product warranty costs that are expected to be incurred pursuant to specific warranty provisions with our customers. We generally warrant our products against defects for one year from date of shipment, with certain exceptions in which the warranty period can extend to more than one year based on contractual agreements. Our warranty reserves are established at the time of sale and updated throughout the warranty period based upon numerous factors including historical warranty return rates and expenses over various warranty periods. Historically, our warranty returns have not been material. | ||||||||||||||||||||||||||||
Intellectual Property Indemnities | ||||||||||||||||||||||||||||
We indemnify certain customers and our contract manufacturers against liability arising from third-party claims of intellectual property rights infringement related to our products. These indemnities appear in development and supply agreements with our customers as well as manufacturing service agreements with our contract manufacturers, are not limited in amount or duration and generally survive the expiration of the contract. Given that the amount of any potential liabilities related to such indemnities cannot be determined until an infringement claim has been made, we are unable to determine the maximum amount of losses that we could incur related to such indemnifications. |
THE_COMPANY_AND_ITS_SIGNIFICAN1
THE COMPANY AND ITS SIGNIFICANT ACCOUNTING POLICIES THE COMPANY AND ITS SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Business | ' |
Description of Business | |
Vitesse Semiconductor Corporation (“Vitesse,” the “Company,” “us,” or “we”) is a leading supplier of high-performance integrated circuits (“ICs”) that are used primarily by manufacturers of networking systems for Carrier, Enterprise and Internet of Things (“IoT”) networking applications. Vitesse designs, develops and markets a diverse portfolio of high-performance, low-power and cost-competitive semiconductor products for these applications. | |
Vitesse was incorporated in the state of Delaware in 1987. Our headquarters are located at 4721 Calle Carga, Camarillo, California, and our phone number is (805) 388-3700. Our stock trades on the NASDAQ Global Market under the ticker symbol VTSS. | |
Fiscal Year | ' |
Fiscal Year | |
Our fiscal year is October 1 through September 30. | |
Basis of Presentation | ' |
Basis of Presentation | |
The interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Securities and Exchange Commission (“SEC”) Form 10-Q and Article 10 of SEC Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. The September 30, 2013 balance sheet data was derived from audited consolidated financial statements, but does not include all disclosures required for annual periods. Therefore, these financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended September 30, 2013, included in our Annual Report on Form 10-K filed with the SEC on December 5, 2013. | |
The consolidated financial statements included herein are unaudited. However, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly our consolidated financial position, the consolidated results of our operations and the consolidated cash flows and the changes in our stockholders’ equity. The results of operations for the three and nine months ended June 30, 2014 are not necessarily indicative of the results to be expected for future quarters or the full year. | |
Reclassifications | ' |
Reclassifications | |
Certain reclassifications have been made to prior fiscal year amounts and related footnotes to conform to current fiscal year presentation with no changes to stockholders’ equity amounts or net loss for the three and nine months ended June 30, 2013. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the unaudited consolidated financial statements. Management regularly evaluates estimates and assumptions related to revenue recognition, allowances for doubtful accounts, warranty reserves, inventory valuation reserves, stock-based compensation, compound embedded derivative valuation, purchased intangible asset valuations and useful lives, asset retirement obligations, and deferred income tax asset valuation allowances. These estimates and assumptions are based on current facts, historical experience and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The actual results we experience may differ materially and adversely from our original estimates. To the extent there are material differences between the estimates and the actual results, our future results of operations will be affected. | |
Risks and uncertainties | ' |
Risks and Uncertainties | |
Our future results of operations involve a number of risks and uncertainties. Factors that could affect our business or future results and cause actual results to vary materially from historical results include, but are not limited to, the highly cyclical nature of the semiconductor industry; our high fixed costs; declines in average selling prices; decisions by our IC manufacturer customers to curtail outsourcing; our substantial indebtedness; our ability to fund liquidity needs; our failure to maintain an effective system of internal controls; product return and liability risks; the absence of significant backlog in our business; our dependence on international operations and sales; proposed changes to United States tax laws; that our management information systems may prove inadequate; our ability to attract and retain qualified employees; difficulties consolidating and evolving our operational capabilities; our dependence on materials and equipment suppliers; our loss of customers; adverse tax consequences; the development of new proprietary technology and the enforcement of intellectual property rights by or against us; the complexity of packaging and test processes in our industry; competition; our need to comply with existing and future environmental regulations; and fire, flood or other calamity affecting us or others with whom we do business. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017. | |
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, A Similar Tax Loss, or a Tax Credit Carryforward Exists (A Consensus the FASB Emerging Issues Task Force). ASU 2013-11 provides guidance on financial statement presentation of unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The FASB’s objective in issuing this ASU is to eliminate diversity in practice resulting from a lack of guidance on this topic in current U.S. GAAP. This ASU applies to all entities with unrecognized tax benefits that also have tax loss or tax credit carryforwards in the same tax jurisdiction as of the reporting date. This amendment is effective for public entities for fiscal years beginning after December 15, 2013, and interim periods within those years. We do not expect the adoption of this standard to have a material impact on our unaudited consolidated financial position and results of operations. |
COMPUTATION_OF_NET_LOSS_PER_SH1
COMPUTATION OF NET LOSS PER SHARE (Tables) | 9 Months Ended | |||||
Jun. 30, 2014 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Schedule of potential common shares excluded from the diluted computation | ' | |||||
The following potentially dilutive common shares are excluded from the computation of net loss per share. | ||||||
June 30, | ||||||
2014 | 2013 | |||||
(in thousands) | ||||||
Outstanding stock options | 2,964 | 2,110 | ||||
Outstanding restricted stock units | 2,377 | 2,031 | ||||
Employee Stock Purchase Plan shares | 355 | 518 | ||||
Convertible preferred stock | — | 674 | ||||
2014 Debentures | 7,298 | 10,332 | ||||
Term B Loan | 1,887 | 1,887 | ||||
Total potential common shares excluded from calculation | 14,881 | 17,552 | ||||
INVENTORY_Tables
INVENTORY (Tables) | 9 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
INVENTORY | ' | |||||||
June 30, | September 30, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Raw materials | $ | 1,110 | $ | 1,220 | ||||
Work-in-process | 5,296 | 3,652 | ||||||
Finished goods | 4,831 | 5,820 | ||||||
Total inventory, net | $ | 11,237 | $ | 10,692 | ||||
DEBT_Tables
DEBT (Tables) | 9 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Schedule of Long-term Debt Instruments | ' | |||||||||||
June 30, | September 30, | |||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Term A Loan, bearing interest at 9.0% and 10.5% as of June 30, 2014 and September 30, 2013, respectively, due August 2016 | $ | 7,783 | $ | 7,919 | ||||||||
Term B Loan, convertible, bearing interest at 9.0% and 8.0% as of June 30, 2014 and September 30, 2013, respectively, due August 2016 | 8,545 | 8,444 | ||||||||||
Other | — | 3 | ||||||||||
Long-term debt, net | 16,328 | 16,366 | ||||||||||
2014 Debentures, convertible, 8.0% fixed-rate notes, due October 2014 | 32,375 | 44,384 | ||||||||||
Total debt, net | $ | 48,703 | $ | 60,750 | ||||||||
Schedule of Debt | ' | |||||||||||
Additional information about our debt is as follows: | ||||||||||||
Term A Loan | Term B Loan | 2014 Debentures | ||||||||||
(in thousands) | ||||||||||||
Principal | $ | 7,857 | $ | 9,342 | $ | 32,843 | ||||||
Unamortized debt discount | (74 | ) | (797 | ) | (468 | ) | ||||||
Carrying value | $ | 7,783 | $ | 8,545 | $ | 32,375 | ||||||
Interest payable terms | Quarterly, in arrears | Quarterly, in arrears | Semi-annually, in arrears | |||||||||
Annual effective interest rate | 9.5 | % | 13.5 | % | 12.2 | % | ||||||
Conversion rate per common share | n/a | $ | 4.95 | $ | 4.5 | |||||||
Schedule of Maturities of Long-term Debt | ' | |||||||||||
Maturity of our total aggregated outstanding debt is as follows: | ||||||||||||
Fiscal Year | (in thousands) | |||||||||||
2014 | $ | — | ||||||||||
2015 | 32,843 | |||||||||||
2016 | 17,199 | |||||||||||
Total | $ | 50,042 | ||||||||||
FAIR_VALUE_MEASUREMENTS_AND_DE1
FAIR VALUE MEASUREMENTS AND DERIVATIVE LIABILITY (Tables) | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule of the fair value of the loans and compound embedded derivative | ' | |||||||||||||||
The estimated fair values of our financial instruments are as follows: | ||||||||||||||||
June 30, 2014 | September 30, 2013 | |||||||||||||||
Carrying value | Fair value | Carrying value | Fair value | |||||||||||||
(in thousands) | ||||||||||||||||
Term A Loan | $ | 7,783 | $ | 8,840 | $ | 7,919 | $ | 8,165 | ||||||||
Term B Loan | 8,545 | 10,360 | 8,444 | 9,781 | ||||||||||||
2014 Debentures | 32,375 | 34,615 | 44,384 | 49,282 | ||||||||||||
STOCK_BASED_COMPENSATION_Table
STOCK BASED COMPENSATION (Tables) | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity [Table Text Block] | ' | ||||||||||||||||
We determine the fair value of the ESPP awards using the Black-Scholes pricing model. Underlying assumptions used were as follows: | |||||||||||||||||
Nine Months Ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Expected life (in years) | 0.5 | 0.5 | |||||||||||||||
Expected volatility | 37.1% - 50.3% | 47.6% - 49.8% | |||||||||||||||
Expected dividend | — | — | |||||||||||||||
Risk-free interest rate | 0.07% - 0.08% | 0.11% - 0.14% | |||||||||||||||
Compensation costs related to the stock-based compensation plans | ' | ||||||||||||||||
Compensation cost related to our Plan and ESPP is as follows: | |||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in thousands) | |||||||||||||||||
Cost of revenues | $ | 210 | $ | 161 | $ | 619 | $ | 459 | |||||||||
Engineering, research and development | 573 | 428 | 1,643 | 1,193 | |||||||||||||
Selling, general and administrative | 803 | 567 | 2,204 | 1,653 | |||||||||||||
Total stock-based compensation expense | $ | 1,586 | $ | 1,156 | $ | 4,466 | $ | 3,305 | |||||||||
Activity under all stock option plans | ' | ||||||||||||||||
Activity in stock option awards is as follows: | |||||||||||||||||
Shares (in thousands) | Weighted Average | Weighted Average | Aggregate | ||||||||||||||
Exercise Price | Remaining | Intrinsic Value (in thousands) | |||||||||||||||
Contractual Life (years) | |||||||||||||||||
Options outstanding, September 30, 2013 | 2,089 | $ | 13.43 | 6.67 | $ | 591 | |||||||||||
Granted | 1,014 | 2.53 | |||||||||||||||
Exercised | (49 | ) | 2.35 | ||||||||||||||
Cancelled or expired | (90 | ) | 86.22 | ||||||||||||||
Options outstanding, June 30, 2014 | 2,964 | 7.64 | 7.23 | 1,792 | |||||||||||||
Options exercisable, June 30, 2014 | 1,649 | $ | 11.67 | 5.85 | $ | 578 | |||||||||||
Summary of assumptions used to value stock options granted in connection with stock incentive plans | ' | ||||||||||||||||
The per share fair values of time-based stock options granted in connection with stock incentive plans have been estimated using the following weighted average assumptions: | |||||||||||||||||
Nine Months Ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Expected life (in years) | 5.79 | 5.65 | |||||||||||||||
Expected volatility: | |||||||||||||||||
Weighted-average | 81.50% | 82.00% | |||||||||||||||
Range | 79.5% - 81.6% | 79.8% - 82.1% | |||||||||||||||
Expected dividend | — | — | |||||||||||||||
Risk-free interest rate | 1.7% - 1.9% | .9% - 1.0% | |||||||||||||||
Schedule of Shares Authorized under Stock Option Plans by Exercise Price Range | ' | ||||||||||||||||
The following table provides additional information in regards to options outstanding as of June 30, 2014: | |||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Range of Exercise Price | Number Outstanding (in thousands) | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | Number Exercisable (in thousands) | Weighted Average Exercise Price | ||||||||||||
$2.10 - $2.26 | 424 | 8.68 | $ | 2.11 | 194 | $ | 2.1 | ||||||||||
2.53 | 987 | 9.45 | 2.53 | 116 | 2.53 | ||||||||||||
2.54 - 4.36 | 750 | 7.03 | 3.45 | 542 | 3.5 | ||||||||||||
4.60 - 41.20 | 594 | 5.08 | 7.89 | 588 | 7.91 | ||||||||||||
42.00 - 145.40 | 209 | 0.67 | 57.39 | 209 | 57.39 | ||||||||||||
$2.10 - $145.40 | 2,964 | 7.23 | $ | 7.64 | 1,649 | $ | 11.67 | ||||||||||
Summary of restricted stock unit activity | ' | ||||||||||||||||
Activity for our restricted stock award units is as follows: | |||||||||||||||||
Restricted | Weighted Average | Weighted Average | Aggregate | ||||||||||||||
Stock Units (in thousands) | Grant-Date Fair | Remaining | Intrinsic Value (in thousands) | ||||||||||||||
Value per Share | Contractual Life (in | ||||||||||||||||
years) | |||||||||||||||||
Restricted stock units, September 30, 2013 | 2,021 | $ | 2.65 | 1.13 | $ | 6,143 | |||||||||||
Awarded | 1,600 | 2.62 | |||||||||||||||
Released | (1,179 | ) | 2.69 | ||||||||||||||
Forfeited | (65 | ) | 2.42 | ||||||||||||||
Restricted stock units, June 30, 2014 | 2,377 | $ | 2.62 | 1.21 | $ | 8,200 | |||||||||||
SEGMENT_AND_GEOGRAPHIC_INFORMA1
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments | ' | |||||||||||||||
Net revenues from customers that were equal to or greater than 10% of total net revenues are as follows: | ||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Tellabs | * | 10.3 | % | * | * | |||||||||||
WPG Holdings** | 26.6 | % | 19.2 | % | 24.5 | % | 16.4 | % | ||||||||
__________________________________________________ | ||||||||||||||||
*Less than 10% of total net revenues for period indicated. | ||||||||||||||||
**Distributor | ||||||||||||||||
Net Revenues By Geographic Area | ' | |||||||||||||||
Net revenues by geographic area are as follows: | ||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
United States | $ | 5,936 | $ | 5,590 | $ | 17,356 | $ | 23,693 | ||||||||
Asia Pacific | 17,606 | 16,856 | 52,272 | 42,957 | ||||||||||||
Europe, Middle East and Africa | 3,609 | 3,972 | 10,198 | 10,248 | ||||||||||||
Total net revenues | $ | 27,151 | $ | 26,418 | $ | 79,826 | $ | 76,898 | ||||||||
Product Revenues By The Three Product Lines | ' | |||||||||||||||
Product revenues by product line are as follows: | ||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Connectivity | $ | 10,132 | $ | 12,199 | $ | 29,556 | 32,172 | |||||||||
Ethernet switching | 14,001 | 9,541 | 36,955 | 28,178 | ||||||||||||
Transport processing | 1,879 | 4,545 | 9,233 | 14,529 | ||||||||||||
Product revenues | $ | 26,012 | $ | 26,285 | $ | 75,744 | $ | 74,879 | ||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of minimum lease payments and software licenses | ' | |||||||||||||||||||||||||||
Future minimum lease payments under non-cancellable operating leases that have remaining non-cancellable lease terms in excess of one year and software licenses are as follows: | ||||||||||||||||||||||||||||
Remaining in 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Operating leases | $ | 559 | $ | 1,952 | $ | 591 | $ | 110 | $ | — | $ | — | $ | 3,212 | ||||||||||||||
Software licenses | 1,684 | 7,136 | 3,147 | 2,900 | 2,800 | — | 17,667 | |||||||||||||||||||||
Total | $ | 2,243 | $ | 9,088 | $ | 3,738 | $ | 3,010 | $ | 2,800 | $ | — | $ | 20,879 | ||||||||||||||
THE_COMPANY_AND_ITS_SIGNIFICAN2
THE COMPANY AND ITS SIGNIFICANT ACCOUNTING POLICIES Narrative (Details) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Nov. 05, 2013 |
major_customer | major_customer | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Debt Instrument, Term A and B Loans [Member] | |
Accounts Receivable [Member] | Accounts Receivable [Member] | ||||
Unrestricted cash balance | ' | ' | ' | ' | $8,000,000 |
Number of Major Customers | 1 | 2 | ' | ' | ' |
Concentration Risk, Percentage | ' | ' | 16.80% | 23.80% | ' |
COMPUTATION_OF_NET_LOSS_PER_SH2
COMPUTATION OF NET LOSS PER SHARE Schedule of Dilutive Common Shares Excluded from the Computation (Details) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 14,881 | 17,552 |
Outstanding stock options [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,964 | 2,110 |
Outstanding restricted stock units [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,377 | 2,031 |
ESPP Shares [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 355 | 518 |
Convertible preferred stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 674 |
2014 Convertible debentures | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 7,298 | 10,332 |
Convertible Notes Payable [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,887 | 1,887 |
INVENTORY_INVENTORY_Details
INVENTORY INVENTORY (Details) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Inventory, net: | ' | ' |
Raw materials | $1,110 | $1,220 |
Work-in-process | 5,296 | 3,652 |
Finished goods | 4,831 | 5,820 |
Total inventory, net | $11,237 | $10,692 |
DEBT_Schedule_of_Longterm_Debt
DEBT Schedule of Long-term Debt Instruments (Details) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Long-term debt, net | $16,328 | $16,366 |
Total debt, net | 48,703 | 60,750 |
Notes Payable to Banks [Member] | Term A Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Stated rate | 9.00% | 10.50% |
Long-term debt, net | 7,783 | 7,919 |
Convertible Notes Payable [Member] | Term B Loan Convertible [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Stated rate | 9.00% | 8.00% |
Long-term debt, net | 8,545 | 8,444 |
Capital Lease Obligations [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt, net | 0 | 3 |
Convertible Debt [Member] | 2014 Debentures [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Stated rate | 8.00% | 8.00% |
2014 Debentures, convertible, 8.0% fixed-rate notes, due October 2014 | $32,375 | $44,384 |
DEBT_Schedule_of_Outstanding_D
DEBT Schedule of Outstanding Debt (Details) (USD $) | 9 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 |
Notes Payable to Banks [Member] | Convertible Notes Payable [Member] | Convertible Debt [Member] | Convertible Debt [Member] | |||
Term A Loan [Member] | Term B Loan Convertible [Member] | 2014 Debentures [Member] | 2014 Debentures [Member] | |||
Rate | Rate | Rate | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Restricted Cash and Investments | ($687) | $0 | ' | ' | ' | ' |
Principal | ' | ' | 7,857 | 9,342 | 32,843 | ' |
Unamortized debt discount | ' | ' | -74 | -797 | -468 | ' |
Carrying value | ' | ' | 7,783 | 8,545 | ' | ' |
2014 Debentures, convertible, 8.0% fixed-rate notes, due October 2014 | ' | ' | ' | ' | $32,375 | $44,384 |
Annual effective interest rate | ' | ' | 9.50% | 13.50% | 12.20% | ' |
Conversion rate per common share | ' | ' | ' | $4.95 | $4.50 | ' |
DEBT_Narrative_Details
DEBT Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | ||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Nov. 05, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Nov. 05, 2013 | Nov. 05, 2013 | Nov. 05, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Nov. 05, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | |
Term A and B Loans | Term A and B Loans | Term A and B Loans | Term A and B Loans | Term A and B Loans | Term A and B Loans | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | |||||
Minimum [Member] | Maximum [Member] | Debt Instrument, Redemption, Period One [Member] | Debt Instrument, Redemption, Period Two [Member] | Debt Instrument, Redemption, Period Three [Member] | Term B Loan Convertible [Member] | Term B Loan Convertible [Member] | 2014 Debentures [Member] | 2014 Debentures [Member] | 2014 Debentures [Member] | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain from other long-term liabilities | $0 | $0 | $0 | $803,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification of compound embedded derivative liability to additional paid-in-capital | ' | ' | 0 | 2,096,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Restricted Cash and Investments | ' | ' | -687,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trading price of common stock payable in additional shares range | ' | ' | ' | ' | ' | $3.20 | $6 | ' | ' | ' | ' | ' | ' | ' | ' |
Stated rate | ' | ' | ' | ' | 9.00% | ' | ' | ' | ' | ' | 9.00% | 8.00% | ' | 8.00% | 8.00% |
Prepayment fee percent | ' | ' | ' | ' | ' | ' | ' | 5.00% | 3.00% | 2.00% | ' | ' | ' | ' | ' |
Unrestricted cash balance | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum quarterly revenue | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price | ' | ' | ' | ' | $4.95 | ' | ' | ' | ' | ' | $4.95 | ' | ' | $4.50 | ' |
Fee amount | ' | ' | ' | ' | 308,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,700,000 | ' | ' |
Prepayment repurchase percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 107.00% | ' | ' |
Incremental common shares attributable to conversion of debt securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' |
Loss on extinguishment of debt | 0 | 0 | 1,594,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 1,594,000 | ' | ' |
Long-term Debt, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9,342,000 | ' | ' | $32,843,000 | ' |
DEBT_Schedule_of_Maturities_of
DEBT Schedule of Maturities of Long-term Debt (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2014 | $0 |
2015 | 32,843 |
2016 | 17,199 |
Total | $50,042 |
FAIR_VALUE_MEASUREMENTS_AND_DE2
FAIR VALUE MEASUREMENTS AND DERIVATIVE LIABILITY Schedule of the fair value of the loans and compound embedded derivative (Details) (USD $) | 9 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2013 |
Convertible Notes Payable [Member] | Convertible Debt [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |
Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Debt [Member] | Convertible Debt [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Inputs, Discount Rate | 4.10% | 3.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Fair Value Disclosure | ' | ' | $7,783 | $7,919 | $8,545 | $8,444 | $32,375 | $44,384 | $8,840 | $8,165 | $10,360 | $9,781 | $34,615 | $49,282 |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 1 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2012 | Sep. 30, 2013 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' |
Common stock, shares authorized | 250,000,000 | ' | 250,000,000 |
Common stock, par value (in dollars per share) | $0.01 | ' | $0.01 |
Issuance of common stock, net of offering costs | $26,600,000 | ' | ' |
Stock offering costs | $2,100,000 | ' | ' |
Issuance of common stock, net of offering costs (in shares) | 8,582,076 | 10,651,280 | ' |
Price per share | $3.35 | ' | ' |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' |
Preferred stock, shares authorized | 10,000,000 | ' | 10,000,000 |
Preferred stock, par value (in dollars per share) | $0.01 | ' | $0.01 |
Preferred stock, shares outstanding | 0 | ' | 0 |
Conversion of Debt, Shares Issued [Member] | ' | ' | ' |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' |
Common stock, shares reserved for future issuance | 9,200,000 | ' | ' |
Stock Options [Member] | ' | ' | ' |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' |
Common stock, shares reserved for future issuance | 8,400,000 | ' | ' |
ESPP Shares [Member] | ' | ' | ' |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' |
Common stock, shares reserved for future issuance | 3,400,000 | ' | ' |
STOCK_BASED_COMPENSATION_Stock
STOCK BASED COMPENSATION Stock Options Narrative (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 10, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Restricted Stock Units (RSUs) [Member] | Total Stockholders' Equity | Total Stockholders' Equity | |||
Executive Officer [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase and retirement of restricted stock units for payroll taxes | ' | ' | ' | ' | ' | ' | ($1,251,000) | ($620,000) |
Number of shares available for future grant | 1,800,000 | ' | ' | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation expense | $7,200,000 | ' | ' | ' | ' | ' | ' | ' |
Weighted average period over which the unearned stock-based compensation is expected to be recognized | ' | ' | '1 year 5 months 8 days | ' | ' | '1 year 10 months 24 days | ' | ' |
Closing stock price used to calculate total pretax intrinsic value | $3.45 | ' | ' | ' | ' | ' | ' | ' |
In-the-money stock options exercisable | 600,000 | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant date fair value | $1.75 | $1.43 | ' | ' | $1.86 | ' | ' | ' |
Options granted | ' | ' | ' | ' | 500,000 | ' | ' | ' |
Weighted average exercise price, Granted | $2.53 | ' | ' | ' | $2.53 | ' | ' | ' |
Consecutive trading days | ' | ' | ' | ' | '30 days | ' | ' | ' |
Expected life (in years) | ' | ' | '5 years 9 months 13 days | '5 years 7 months 24 days | '1 year 3 months 18 days | ' | ' | ' |
Expected volatility: | ' | ' | ' | ' | 80.00% | ' | ' | ' |
Expected dividend | ' | ' | 0.00% | 0.00% | 0.00% | ' | ' | ' |
Risk-free interest rate | ' | ' | ' | ' | 2.79% | ' | ' | ' |
STOCK_BASED_COMPENSATION_Compe
STOCK BASED COMPENSATION Compensation costs related to the stock-based compensations plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | $1,586 | $1,156 | $4,466 | $3,305 |
Cost of revenues [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 210 | 161 | 619 | 459 |
Engineering, research and development [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 573 | 428 | 1,643 | 1,193 |
Selling, general and administrative [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | $803 | $567 | $2,204 | $1,653 |
STOCK_BASED_COMPENSATION_Activ
STOCK BASED COMPENSATION Activity under all stock option plans (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' |
Options outstanding, Shares, Beginning balance | 2,089 | ' |
Options outstanding, Weighted average exercise price, Beginning balance | $13.43 | ' |
Options outstanding, Weighted average remaining contractual life (in years), Beginning balance | '7 years 2 months 23 days | '6 years 8 months 1 day |
Options outstanding, Aggregate intrinsic value, Beginning balance | $591 | ' |
Shares, Granted | 1,014 | ' |
Weighted average exercise price, Granted | $2.53 | ' |
Shares, Exercised | -49 | ' |
Weighted average exercise price, Exercised | $2.35 | ' |
Shares, Cancelled or expired | -90 | ' |
Weighted average exercise price, Cancelled or expired | $86.22 | ' |
Options outstanding, Shares, Ending balance | 2,964 | 2,089 |
Options outstanding, Weighted average exercise price, Ending balance | $7.64 | $13.43 |
Options outstanding, Weighted average remaining contractual life (in years), Ending balance | '7 years 2 months 23 days | '6 years 8 months 1 day |
Options outstanding, Aggregate intrinsic value, Ending balance | 1,792 | 591 |
Options exercisable, Shares, Ending balance | 1,649 | ' |
Options exercisable, Weighted average exercise price, Ending balance | $11.67 | ' |
Options exercisable, Weighted average remaining contractual life (in years), Ending balance | '5 years 10 months 6 days | ' |
Aggregate intrinsic value, Options exercisable | $578 | ' |
STOCK_BASED_COMPENSATION_Summa
STOCK BASED COMPENSATION Summary of assumptions used to value stock options granted in connection with stock incentives (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock compensation recognized | $1,586 | $1,156 | $4,466 | $3,305 |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected life (in years) | ' | ' | '5 years 9 months 13 days | '5 years 7 months 24 days |
Expected Volatility Rate, Minimum | ' | ' | 79.50% | 79.80% |
Expected Volatility Rate, Maximum | ' | ' | 81.60% | 82.10% |
Weighted Average Volatility Rate | ' | ' | 81.50% | 82.00% |
Expected dividend | ' | ' | 0.00% | 0.00% |
Risk Free Interest Rate, Minimum | ' | ' | 1.70% | 0.90% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | ' | ' | 1.90% | 1.00% |
Employee Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock compensation recognized | ' | ' | $456 | $443 |
Expected life (in years) | ' | ' | '6 months | '6 months |
Expected Volatility Rate, Minimum | ' | ' | 37.10% | 47.60% |
Expected Volatility Rate, Maximum | ' | ' | 50.30% | 49.80% |
Expected dividend | ' | ' | 0.00% | 0.00% |
Risk Free Interest Rate, Minimum | ' | ' | 0.07% | 0.11% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | ' | ' | 0.08% | 0.14% |
STOCK_BASED_COMPENSATION_Summa1
STOCK BASED COMPENSATION Summary of Exercise Prices (Details) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Range, Lower Range Limit | $2.10 |
Exercise Price Range, Upper Range Limit | $145 |
Number of Options Outstanding | 2,964 |
Outstanding Options, Weighted Average Remaining Contractual Term | '7 years 2 months 23 days |
Outstanding Options, Weighted Average Exercise Price | $7.64 |
Number of Exercisable Options | 1,649 |
Exercisable Options, Weighted Average Exercise Price | $11.67 |
2.10 - 2.26 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Range, Lower Range Limit | $2.10 |
Exercise Price Range, Upper Range Limit | $2.26 |
Number of Options Outstanding | 424 |
Outstanding Options, Weighted Average Remaining Contractual Term | '8 years 8 months 4 days |
Outstanding Options, Weighted Average Exercise Price | $2.11 |
Number of Exercisable Options | 194 |
Exercisable Options, Weighted Average Exercise Price | $2.10 |
2.53 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Range, Lower Range Limit | $2.53 |
Exercise Price Range, Upper Range Limit | $2.53 |
Number of Options Outstanding | 987 |
Outstanding Options, Weighted Average Remaining Contractual Term | '9 years 5 months 12 days |
Outstanding Options, Weighted Average Exercise Price | $2.53 |
Number of Exercisable Options | 116 |
Exercisable Options, Weighted Average Exercise Price | $2.53 |
2.54 - 4.36 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Range, Lower Range Limit | $2.54 |
Exercise Price Range, Upper Range Limit | $4.36 |
Number of Options Outstanding | 750 |
Outstanding Options, Weighted Average Remaining Contractual Term | '7 years 0 months 10 days |
Outstanding Options, Weighted Average Exercise Price | $3.45 |
Number of Exercisable Options | 542 |
Exercisable Options, Weighted Average Exercise Price | $3.50 |
4.60 - 41.20 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Range, Lower Range Limit | $4.60 |
Exercise Price Range, Upper Range Limit | $41.20 |
Number of Options Outstanding | 594 |
Outstanding Options, Weighted Average Remaining Contractual Term | '5 years 0 months 29 days |
Outstanding Options, Weighted Average Exercise Price | $7.89 |
Number of Exercisable Options | 588 |
Exercisable Options, Weighted Average Exercise Price | $7.91 |
42.00 - 145.40 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Range, Lower Range Limit | $42 |
Exercise Price Range, Upper Range Limit | $145 |
Number of Options Outstanding | 209 |
Outstanding Options, Weighted Average Remaining Contractual Term | '8 months 1 day |
Outstanding Options, Weighted Average Exercise Price | $57.39 |
Number of Exercisable Options | 209 |
Exercisable Options, Weighted Average Exercise Price | $57.39 |
STOCK_BASED_COMPENSATION_Restr
STOCK BASED COMPENSATION Restricted Stock Units Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock compensation recognized | $1,586 | $1,156 | $4,466 | $3,305 |
Total Stockholders' Equity | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Impact of retaining common stock from employees upon vesting of restricted shares and restricted stock units to cover income tax withholding | ' | ' | ($1,251) | ($620) |
STOCK_BASED_COMPENSATION_Summa2
STOCK BASED COMPENSATION Summary of restricted stock unit activity (Details) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Stock Options [Member] | Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | ' | ' | 1.90% | 1.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ' | ' | ' | ' |
Restricted stock units, Restricted Stock Units, Beginning balance | 2,021 | ' | ' | ' |
Restricted stock units, Weighted Average Grant-Date Fair Value per Share, Beginning balance | $2.65 | ' | ' | ' |
Weighted average remaining contractual life (in years), beginning balance | '1 year 2 months 15 days | '1 year 1 month 17 days | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value | $6,143,000 | ' | ' | ' |
Restricted Stock Units, Awarded | 1,600 | ' | ' | ' |
Weighted Average Grant-Date Fair Value per Share, Awarded | $2.62 | ' | ' | ' |
Restricted Stock Units, Released | -1,179 | ' | ' | ' |
Weighted Average Grant-Date Fair Value per Share, Released | $2.69 | ' | ' | ' |
Restricted Stock Units, Forfeited | -65 | ' | ' | ' |
Weighted Average Grant-Date Fair Value per Share, Forfeited | $2.42 | ' | ' | ' |
Restricted stock units, Restricted Stock Units, Ending balance | 2,377 | 2,021 | ' | ' |
Restricted stock units, Weighted Average Grant-Date Fair Value per Share, Ending balance | $2.62 | $2.65 | ' | ' |
Weighted average remaining contractual life (in years), ending balance | '1 year 2 months 15 days | '1 year 1 month 17 days | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value | $8,200,000 | $6,143,000 | ' | ' |
STOCK_BASED_COMPENSATION_Emplo
STOCK BASED COMPENSATION Employee Stock Purchase Plan Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jan. 31, 2014 | Aug. 02, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jul. 31, 2014 |
Employee Stock [Member] | Employee Stock [Member] | Employee Stock [Member] | Employee Stock [Member] | Subsequent Event [Member] | |||||
Employee Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum annual contributions per employee, percent | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' |
Call option for percent of share of stock | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' |
Common stock, shares reserved for future issuance | ' | ' | ' | ' | ' | ' | 3,400,000 | ' | ' |
Shares issued in period | ' | ' | ' | ' | 366,485 | ' | ' | ' | 355,415 |
Per share price of ESPP shares issued | ' | ' | ' | ' | $2.46 | ' | ' | ' | $2.55 |
Discount from market price | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' |
Stock compensation recognized | $1,586 | $1,156 | $4,466 | $3,305 | ' | ' | $456 | $443 | ' |
INCOME_TAXES_Narrative_Details
INCOME TAXES Narrative (Details) (USD $) | 1 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Effective Income Tax Rate, Continuing Operations | ' | ' | 0.40% | -4.60% |
Issuance of common stock, net of offering costs (in shares) | 8,582,076 | 10,651,280 | ' | ' |
Percent of shareholder change to limit the net loss carryforwards | ' | 5.00% | ' | ' |
Percentage points | ' | 0.50% | ' | ' |
Rolling period over which shareholder basis points must be over | ' | '3 years | ' | ' |
Subject to annual limitation | $28.10 | ' | $28.10 | ' |
Internal Revenue Service (IRS) [Member] | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Operating Loss Carryforwards | 43.4 | ' | 43.4 | ' |
Net operating loss annual limit | ' | ' | 1.4 | ' |
State and Local Jurisdiction [Member] | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Operating Loss Carryforwards | 33 | ' | 33 | ' |
Foreign Tax Authority [Member] | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Operating Loss Carryforwards | $133.20 | ' | $133.20 | ' |
SEGMENT_AND_GEOGRAPHIC_INFORMA2
SEGMENT AND GEOGRAPHIC INFORMATION Schedule of Revenue by Major Customers by Reporting Segments (Details) | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |||||
segment | major_customer | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Major Customer, Tellabs [Member] | Major Customers, WPG [Member] | Major Customers, WPG [Member] | Major Customers, WPG [Member] | Major Customers, WPG [Member] | |||||
major_customer | Accounts Receivable [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | ||||||
Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | |||||||||
Segment Reporting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of Operating Segments | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of Major Customers | 1 | 2 | ' | ' | ' | ' | ' | ' | ' | ||||
Concentration Risk, Percentage | ' | ' | 16.80% | 23.80% | 10.30% | 26.60% | [1] | 19.20% | [1] | 24.50% | [1] | 16.40% | [1] |
[1] | Distributor |
SEGMENT_AND_GEOGRAPHIC_INFORMA3
SEGMENT AND GEOGRAPHIC INFORMATION Net Revenues By Geographic Area (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net revenues | $27,151 | $26,418 | $79,826 | $76,898 |
United States | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net revenues | 5,936 | 5,590 | 17,356 | 23,693 |
Asia Pacific [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net revenues | 17,606 | 16,856 | 52,272 | 42,957 |
EMEA [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net revenues | $3,609 | $3,972 | $10,198 | $10,248 |
SEGMENT_AND_GEOGRAPHIC_INFORMA4
SEGMENT AND GEOGRAPHIC INFORMATION Product Revenues By The Three Product Lines (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
product_line | ||||
Revenue from External Customers [Line Items] | ' | ' | ' | ' |
Number Of Product Lines | ' | ' | 3 | ' |
Product revenues | $26,012 | $26,285 | $75,744 | $74,879 |
Connectivity [Member] | ' | ' | ' | ' |
Revenue from External Customers [Line Items] | ' | ' | ' | ' |
Product revenues | 10,132 | 12,199 | 29,556 | 32,172 |
Ethernet switching [Member] | ' | ' | ' | ' |
Revenue from External Customers [Line Items] | ' | ' | ' | ' |
Product revenues | 14,001 | 9,541 | 36,955 | 28,178 |
Transport processing [Member] | ' | ' | ' | ' |
Revenue from External Customers [Line Items] | ' | ' | ' | ' |
Product revenues | $1,879 | $4,545 | $9,233 | $14,529 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ' |
Standard Product Warranty Period | '1 year |
Operating leases | ' |
Remaining in 2014 | $559 |
2015 | 1,952 |
2016 | 591 |
2017 | 110 |
2018 | 0 |
Thereafter | 0 |
Total | 3,212 |
Software licenses | ' |
Remaining in 2014 | 1,684 |
2015 | 7,136 |
2016 | 3,147 |
2017 | 2,900 |
2018 | 2,800 |
Thereafter | 0 |
Total | 17,667 |
Total | ' |
Remaining in 2014 | 2,243 |
2015 | 9,088 |
2016 | 3,738 |
2017 | 3,010 |
2018 | 2,800 |
Thereafter | 0 |
Total | $20,879 |