Vitesse Semiconductor (VTSS) 10-Q 5 Aug 14 2014 Q3 Quarterly report Financial data

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