Vitesse Semiconductor (VTSS) 10-Q 3 Feb 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Dec. 31, 2014	Jan. 30, 2015
Document And Entity Information [Abstract]
Entity Registrant Name	VITESSE SEMICONDUCTOR CORP
Entity Central Index Key	880446
Document Type	10-Q
Document Period End Date	31-Dec-14
Amendment Flag	FALSE
Current Fiscal Year End Date	-21
Entity Filer Category	Accelerated Filer
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Entity Common Stock, Shares Outstanding		68,977,645

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2014	Sep. 30, 2014
In Thousands, unless otherwise specified
Current assets:
Cash	$31,745	$71,903
Accounts receivable	10,081	10,850
Inventories	15,705	12,792
Restricted cash	1,608	794
Prepaid expenses and other current assets	2,170	1,047
Total current assets	61,309	97,386
Property, plant and equipment, net	2,913	2,858
Other intangible assets, net	1,811	1,476
Other assets	1,511	3,104
Total Assets	67,544	104,824
Current liabilities:
Accounts payable	7,947	6,814
Accrued expenses and other current liabilities	9,548	12,472
Current portion of debt, net	0	32,727
Deferred revenue	6,302	4,902
Total current liabilities	23,797	56,915
Other long-term liabilities	225	234
Long-term debt, net	16,508	16,417
Total liabilities	40,530	73,566
Commitments and contingencies, See 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; 68,426 and 67,703 shares outstanding at December 31, 2014 and September 30, 2014, respectively	684	677
Additional paid-in-capital	1,925,774	1,924,984
Accumulated deficit	-1,899,444	-1,894,403
Total stockholders’ equity	27,014	31,258
Total Liabilities and Stockholders' Equity	$67,544	$104,824

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2014	Sep. 30, 2014
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 issued	0	0
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	68,426,000	67,703,000

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Net revenues:
Product revenues	$23,969	$24,863
Intellectual property revenues	786	2,220
Net revenues	24,755	27,083
Costs and expenses:
Cost of product revenues	10,053	10,676
Engineering, research and development	11,337	10,679
Selling, general and administrative	7,415	7,854
Amortization of intangible assets	100	88
Costs and expenses	28,905	29,297
Loss from operations	-4,150	-2,214
Other expense:
Interest expense, net	818	1,704
Loss on extinguishment of debt	0	1,594
Other, net	28	61
Other expense, net	846	3,359
Loss before income tax expense (benefit)	-4,996	-5,573
Income tax expense (benefit)	45	-202
Net loss	($5,041)	($5,371)
Net loss per common share - basic and diluted (in dollars per share)	($0.07)	($0.09)
Weighted average common shares outstanding - basic and diluted	67,974	57,610

CONSOLIDATED_STATEMENTS_OF_STO

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $)	Total	Common Stock [Member]	Additional Paid-in-Capital [Member]	Accumulated Deficit [Member]	Total Stockholders' Equity
In Thousands, unless otherwise specified
Balance at Sep. 30, 2014	$31,258	$677	$1,924,984	($1,894,403)	$31,258
Balance (in shares) at Sep. 30, 2014		67,703
Increase (Decrease) in Stockholders' Equity
Net loss	-5,041			-5,041	-5,041
Compensation expense related to stock options, awards and employee stock purchase plan			1,831		1,831
Stock Issued During Period, Shares, Exercise of Stock Options		14
Stock Issued During Period, Value, Exericse of Stock Options			34		34
Release of restricted stock units (in shares)		994
Release of restricted stock units		10	-10
Repurchase and retirement of restricted stock units for payroll taxes (in shares)		-285
Repurchase and retirement of restricted stock units for payroll taxes		-3	-1,065		-1,068
Balance at Dec. 31, 2014	$27,014	$684	$1,925,774	($1,899,444)	$27,014
Balance (in shares) at Dec. 31, 2014		68,426

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Cash flows used in operating activities:
Net loss	($5,041)	($5,371)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	519	496
Stock-based compensation	1,831	1,265
Gain on disposal of assets	0	-159
Loss on extinguishment of debt, net	0	1,594
Amortization of debt issuance costs	16	54
Amortization of debt discounts	207	512
Accretion of debt premiums	0	-9
Change in operating assets and liabilities:
Accounts receivable	769	-1,599
Inventories	-2,913	-1,852
Prepaids and other assets	-1,047	-1,124
Accounts payable	1,184	2,013
Accrued expenses and other current liabilities	-2,912	-856
Deferred revenue	1,400	513
Net cash used in operating activities	-5,987	-4,523
Cash flows used in investing activities:
Capital expenditures	-474	-884
Proceeds from sale of fixed assets	0	183
Payments under licensing agreements	-456	-87
Net cash used in investing activities	-930	-788
Cash flows used in financing activities:
Proceeds from the exercise of stock options and issuances of shares under the employee stock purchase plan	34	0
Repayment of convertible subordinated debentures	-32,843	-14,606
Consent fee on amendment of credit agreement	0	-308
Release of cash previously restricted under credit agreement	687	0
Repurchase and retirement of restricted stock units for payroll taxes	-1,068	-343
Other	-51	60
Net cash used in financing activities	-33,241	-15,197
Net decrease in cash	-40,158	-20,508
Cash at beginning of period	71,903	68,863
Cash at end of period	31,745	48,355
Cash paid during the period for:
Interest	1,921	2,371
Income taxes	196	25
Non-cash investing and financing activities:
Licensing agreement obligation incurred but not paid	$135	$0

THE_COMPANY_AND_ITS_SIGNIFICAN

THE COMPANY AND ITS SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Dec. 31, 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,” “we” or “our”) is a leading supplier of high-performance integrated circuits (“ICs”), associated application and protocol software, and integrated turnkey systems solutions used primarily by manufacturers of networking systems for Carrier, Enterprise and Industrial Internet of Things (“IoT”) networking applications. With these solutions, we enable networking industries to transition from legacy networks to standards-based, ubiquitous ‘Ethernet Everywhere’ networking, starting from Enterprise networks and Carrier networks, and now penetrating Industrial-IoT networks.
	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, 2014 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, 2014, included in our Annual Report on Form 10-K filed with the SEC on December 4, 2014.
	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 months ended December 31, 2014 are not necessarily indicative of the results to be expected for future quarters or the full year.
	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 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, 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 Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers, which supersedes nearly all existing revenue recognition guidance under 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 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 fiscal year 2018.
	In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This standard sets forth management’s responsibility to evaluate, each reporting period, whether there is substantial doubt about our ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for annual reporting periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. We are currently evaluating this new standard and after adoption, we will incorporate this guidance in our assessment of going concern.

COMPUTATION_OF_NET_LOSS_PER_SH

COMPUTATION OF NET LOSS PER SHARE	3 Months Ended
	Dec. 31, 2014
Earnings Per Share [Abstract]
COMPUTATION OF NET LOSS PER SHARE	COMPUTATION OF NET LOSS PER SHARE
	For the three months ended December 31, 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.
		Outstanding as of December 31,
		2014	2013
		(in thousands)
	Outstanding stock options	2,781	3,038
	Outstanding restricted stock units	2,452	3,034
	Employee Stock Purchase Plan shares	469	365
	2014 Debentures	—	7,298
	Term B Loan	—	1,887
	Total potential common shares excluded from calculation	5,702	15,622

INVENTORY

INVENTORY	3 Months Ended
	Dec. 31, 2014
Inventory Disclosure [Abstract]
INVENTORY	INVENTORIES
		December 31,		September 30,
		2014		2014
		(in thousands)
	Raw materials	$	1,399	$	1,840
	Work-in-process	5,140		4,503
	Finished goods	9,166		6,449
	Total inventories	$	15,705	$	12,792

DEBT

DEBT	3 Months Ended
	Dec. 31, 2014
Debt Disclosure [Abstract]
DEBT	DEBT
		December 31,			September 30,
		2014			2014
		(in thousands)
	Term A and B Loans, bearing interest at 9.0%, interest payable quarterly in arrears, due August 2016	$	16,508		$	16,417
	2014 Debentures, convertible, 8.0% fixed-rate notes, repaid in October 2014	—			32,727
	Total debt, net	$	16,508		$	49,144
	Additional information about our debt is as follows:
		Term A Loan			Term B Loan			Total
		(in thousands)
	Principal	$	7,857		$	9,342		$	17,199
	Unamortized debt discount	(59		)	(632		)	(691		)
	Carrying value	$	7,798		$	8,710		$	16,508
	Annual effective interest rate	9.5		%	13.5		%
	Our long-term debt is comprised of our Term A Loan and our Term B Loan, which we collectively refer to as our “Term A and B Loans”, due in August 2016.
	We have the 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 3% for prepayments made on or after October 30, 2014 but prior to October 30, 2015, and 2% for prepayment made on or after October 30, 2015. Upon the occurrence of certain change in control events, the holders of the Term A and B Loans may require us to redeem all or a portion of the loans at 100% of the principal amount plus accrued and unpaid interest. 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.
	The credit agreement for the Term A and B Loans provide for customary restrictions and limitations on our ability to incur indebtedness and liens on property, make restricted payments or investments, enter into mergers or consolidations, conduct asset sales, pay dividends or distributions and enter into specified transactions and activities, and also contain other customary default provisions. Additionally, we are required 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 December 31, 2014. The Term A and B Loans are collateralized by substantially all of our assets.
	In November 2013, we paid the holders of the Term A and B Loans a consent fee of $0.3 million and we repurchased $13.7 million principal amount of our convertible subordinated debentures (“2014 Debentures”) at 107% of the principal amount thereof plus accrued interest. We recorded a loss on extinguishment of debt of $1.6 million due to the repurchase during the three months ended December 31, 2013.

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Dec. 31, 2014
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS
	We measure the fair value of our Term A and B Loans, which are carried at amortized cost, on a quarterly basis for disclosure purposes. We use a discounted cash flow based model to estimate the fair value of these financial instruments. The estimated fair value of the Term A and B Loans is determined using Level 3 inputs based primarily on the comparability of their terms to the terms we could obtain for similar instruments in the current market.  The key unobservable input utilized in the model includes a discount rate of approximately 4.5%.
	The estimated fair values of our financial instruments are as follows:
		December 31, 2014				September 30, 2014
		Carrying value		Fair value		Carrying value		Fair value
		(in thousands)
	Term A Loan	$	7,798	$	8,595	$	7,791	$	8,755
	Term B Loan	8,710		10,055		8,626		10,245
	2014 Debentures	—		—		32,727		33,040

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Dec. 31, 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 7.8 million and 3.0 million shares of common stock have been reserved for issuance under our stock compensation plans and Employee Stock Purchase Plan (“ESPP”), respectively, as of December 31, 2014.

STOCK_BASED_COMPENSATION

STOCK BASED COMPENSATION	3 Months Ended
	Dec. 31, 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 0.8 million shares available for future grant as of December 31, 2014.
	Compensation cost related to our Plan and ESPP is as follows:
		Three Months Ended December 31,
		2014			2013
		(in thousands)
	Cost of revenues	$	230		$	184
	Engineering, research and development	671			485
	Selling, general and administrative	930			596
	Total stock-based compensation expense	$	1,831		$	1,265
	As of December 31, 2014, there was $7.7 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 0.9 years and 2.1 years, respectively. An estimated forfeiture rate of 4.2% has been applied to all unvested time-based options and restricted stock outstanding as of December 31, 2014.
	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, 2014	2,940		$	7.46			7	$	2,059
	Granted	—
	Exercised	(14	)	2.41					20
	Cancelled or expired	(145	)	54.96
	Options outstanding, December 31, 2014	2,781		$	5.01			7.08	$	2,353
	Options exercisable, December 31, 2014	1,774		$	6.46			6.14	$	1,014
	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 $3.78 and $3.60 as of December 31, 2014 and September 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 0.8 million in-the-money stock options that were exercisable as of December 31, 2014.
	The following table provides additional information in regards to options outstanding as of December 31, 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		409		8.19		$	2.11		187	$	2.1
	2.53		987		8.94		2.53			239	2.53
	2.54 - 4.36		732		6.52		3.45			700	3.49
	4.60 - 30.60		584		4.6		7.58			579	7.6
	33.60 - 66.40		69		0.88		52.36			69	52.36
	$2.10 - $66.40		2,781		7.08		$	5.01		1,774	$	6.46
	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, 2014	2,328		$	2.61			0.96	$	8,380
	Awarded	1,129		3.34
	Released	(994	)	3.04
	Forfeited	(11	)	2.8
	Restricted stock units, December 31, 2014	2,452		$	2.77			1.38	$	9,267
	The aggregate intrinsic values in the preceding table for the restricted stock units outstanding represent the total pretax intrinsic value, based on our closing stock price of $3.78 and $3.60 as of December 31, 2014 and September 30, 2014, respectively. We issue restricted stock units as part of our equity incentive plans. For the three months ended December 31, 2014, the total grant date fair value of shares vested from restricted stock unit grants was $3.0 million. 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 $1.1 million for the three months ended December 31, 2014 and the amount 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 30, 2015, 0.5 million shares were issued at a price per share of $2.50, a 15% discount to the share price on August 1, 2014, the commencement date for the purchase period that ended January 30, 2015. We recognized $0.2 million of stock compensation expense under the ESPP during the three months ended December 31, 2014. We determine the fair value of the ESPP awards using the Black-Scholes pricing model. We used the following assumptions during the three months ended December 31, 2014: expected useful life of 0.5 years, expected volatility of 44.8%, a zero dividend rate, and a risk-free interest rate of 0.05%.

INCOME_TAXES

INCOME TAXES	3 Months Ended
	Dec. 31, 2014
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES
	The income tax expense (benefit) as a percentage of loss from operations before income taxes was 0.9% for the three months ended December 31, 2014 compared to (3.6)% 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 December 31, 2014, we had approximately $55.8 million, $27.4 million, and $119.1 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 December 31, 2014, $25.4 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 three months ended December 31, 2014, or on our net deferred tax asset as of December 31, 2014.
	In June 2013, we issued an additional 18.7 million shares of common stock in a public offering. Based on a preliminary evaluation we do not believe this offering caused another Section 382 ownership change. As additional relevant information becomes available we will update our evaluation. If an additional ownership change did occur or does occur 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	3 Months Ended
	Dec. 31, 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 December 31,
		2014		2013
	WPG Holdings and affiliates*	25.2	%	23.8	%
	__________________________________________________
	*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 December 31, 2014, there were two customers that accounted for 31.0% of accounts receivable. At September 30, 2014, there were two customers that accounted for 24.3% 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 December 31,
		2014			2013
		(in thousands)
	United States	$	5,052		$	6,559
	China, including Hong Kong	5,531			7,994
	Taiwan	7,651			5,651
	Other Asia Pacific	3,638			3,141
	Europe, Middle East and Africa	2,883			3,738
	Net revenues	$	24,755		$	27,083
	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) Ethernet switching; (ii) Connectivity; and (iii) Transport processing. Product revenues by product line are as follows:
		Three Months Ended December 31,
		2014			2013
		(in thousands)
	Ethernet switching	$	12,171		$	11,336
	Connectivity	10,219			8,949
	Transport processing	1,579			4,578
	Product revenues	$	23,969		$	24,863

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Dec. 31, 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 2019 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 2015		2016		2017		2018		2019		Thereafter		Total
		(in thousands)
	Operating leases	$	1,482	$	670	$	186	$	60	$	15	$	—	$	2,413
	Software licenses	4,989		4,555		4,275		4,175		—		—		17,994
	Total	$	6,471	$	5,225	$	4,461	$	4,235	$	15	$	—	$	20,407
	Litigation
	We are party to various claims and lawsuits arising in the normal course of business. We closely monitor these claims and lawsuits and frequently consult with our legal counsel to determine whether they may, when resolved have a material adverse effect on our financial position or results or operations and accrue and/or disclose loss contingencies as appropriate.
	Warranty
	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.
	Guarantees and Indemnities
	In the normal course of business, we are occasionally required to undertake indemnification for which we may be required to make future payments under specific circumstances. We review our exposure under such obligations no less than annually, or more frequently as required. The amount of any potential liabilities related to such obligations cannot be accurately determined until a formal claim is filed. Historically, any such amounts that become payable have not had a material negative effect our business, financial condition or results of operations. We maintain general and product liability insurance which may provide a source of recovery to us in the event of an indemnification claim.

THE_COMPANY_AND_ITS_SIGNIFICAN1

THE COMPANY AND ITS SIGNIFICANT ACCOUNTING POLICIES THE COMPANY AND ITS SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business
	Vitesse Semiconductor Corporation (“Vitesse,” the “Company,” “us,” “we” or “our”) is a leading supplier of high-performance integrated circuits (“ICs”), associated application and protocol software, and integrated turnkey systems solutions used primarily by manufacturers of networking systems for Carrier, Enterprise and Industrial Internet of Things (“IoT”) networking applications. With these solutions, we enable networking industries to transition from legacy networks to standards-based, ubiquitous ‘Ethernet Everywhere’ networking, starting from Enterprise networks and Carrier networks, and now penetrating Industrial-IoT networks.
	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, 2014 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, 2014, included in our Annual Report on Form 10-K filed with the SEC on December 4, 2014.
	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 months ended December 31, 2014 are not necessarily indicative of the results to be expected for future quarters or the full year.
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 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, 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 Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers, which supersedes nearly all existing revenue recognition guidance under 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 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 fiscal year 2018.
	In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This standard sets forth management’s responsibility to evaluate, each reporting period, whether there is substantial doubt about our ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for annual reporting periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. We are currently evaluating this new standard and after adoption, we will incorporate this guidance in our assessment of going concern.

COMPUTATION_OF_NET_LOSS_PER_SH1

COMPUTATION OF NET LOSS PER SHARE (Tables)	3 Months Ended
	Dec. 31, 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.
		Outstanding as of December 31,
		2014	2013
		(in thousands)
	Outstanding stock options	2,781	3,038
	Outstanding restricted stock units	2,452	3,034
	Employee Stock Purchase Plan shares	469	365
	2014 Debentures	—	7,298
	Term B Loan	—	1,887
	Total potential common shares excluded from calculation	5,702	15,622

INVENTORIES_Tables

INVENTORIES (Tables)	3 Months Ended
	Dec. 31, 2014
Inventory Disclosure [Abstract]
INVENTORY
		December 31,		September 30,
		2014		2014
		(in thousands)
	Raw materials	$	1,399	$	1,840
	Work-in-process	5,140		4,503
	Finished goods	9,166		6,449
	Total inventories	$	15,705	$	12,792

DEBT_Tables

DEBT (Tables)	3 Months Ended
	Dec. 31, 2014
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments
		December 31,			September 30,
		2014			2014
		(in thousands)
	Term A and B Loans, bearing interest at 9.0%, interest payable quarterly in arrears, due August 2016	$	16,508		$	16,417
	2014 Debentures, convertible, 8.0% fixed-rate notes, repaid in October 2014	—			32,727
	Total debt, net	$	16,508		$	49,144
Schedule of Debt	Additional information about our debt is as follows:
		Term A Loan			Term B Loan			Total
		(in thousands)
	Principal	$	7,857		$	9,342		$	17,199
	Unamortized debt discount	(59		)	(632		)	(691		)
	Carrying value	$	7,798		$	8,710		$	16,508
	Annual effective interest rate	9.5		%	13.5		%

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Schedule of the fair value of the loans	The estimated fair values of our financial instruments are as follows:
		December 31, 2014				September 30, 2014
		Carrying value		Fair value		Carrying value		Fair value
		(in thousands)
	Term A Loan	$	7,798	$	8,595	$	7,791	$	8,755
	Term B Loan	8,710		10,055		8,626		10,245
	2014 Debentures	—		—		32,727		33,040

STOCK_BASED_COMPENSATION_Table

STOCK BASED COMPENSATION (Tables)	3 Months Ended
	Dec. 31, 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. We used the following assumptions during the three months ended December 31, 2014: expected useful life of 0.5 years, expected volatility of 44.8%, a zero dividend rate, and a risk-free interest rate of 0.05%.
Compensation costs related to the stock-based compensation plans	Compensation cost related to our Plan and ESPP is as follows:
		Three Months Ended December 31,
		2014			2013
		(in thousands)
	Cost of revenues	$	230		$	184
	Engineering, research and development	671			485
	Selling, general and administrative	930			596
	Total stock-based compensation expense	$	1,831		$	1,265
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, 2014	2,940		$	7.46			7	$	2,059
	Granted	—
	Exercised	(14	)	2.41					20
	Cancelled or expired	(145	)	54.96
	Options outstanding, December 31, 2014	2,781		$	5.01			7.08	$	2,353
	Options exercisable, December 31, 2014	1,774		$	6.46			6.14	$	1,014
Summary of assumptions used to value stock options granted in connection with stock incentive plans
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 December 31, 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		409		8.19		$	2.11		187	$	2.1
	2.53		987		8.94		2.53			239	2.53
	2.54 - 4.36		732		6.52		3.45			700	3.49
	4.60 - 30.60		584		4.6		7.58			579	7.6
	33.60 - 66.40		69		0.88		52.36			69	52.36
	$2.10 - $66.40		2,781		7.08		$	5.01		1,774	$	6.46
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, 2014	2,328		$	2.61			0.96	$	8,380
	Awarded	1,129		3.34
	Released	(994	)	3.04
	Forfeited	(11	)	2.8
	Restricted stock units, December 31, 2014	2,452		$	2.77			1.38	$	9,267

SEGMENT_AND_GEOGRAPHIC_INFORMA1

SEGMENT AND GEOGRAPHIC INFORMATION (Tables)	3 Months Ended
	Dec. 31, 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 December 31,
		2014		2013
	WPG Holdings and affiliates*	25.2	%	23.8	%
	__________________________________________________
	*Distributor
Net Revenues By Geographic Area	Net revenues by geographic area are as follows:
		Three Months Ended December 31,
		2014			2013
		(in thousands)
	United States	$	5,052		$	6,559
	China, including Hong Kong	5,531			7,994
	Taiwan	7,651			5,651
	Other Asia Pacific	3,638			3,141
	Europe, Middle East and Africa	2,883			3,738
	Net revenues	$	24,755		$	27,083
Product Revenues By The Three Product Lines	Product revenues by product line are as follows:
		Three Months Ended December 31,
		2014			2013
		(in thousands)
	Ethernet switching	$	12,171		$	11,336
	Connectivity	10,219			8,949
	Transport processing	1,579			4,578
	Product revenues	$	23,969		$	24,863

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Dec. 31, 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 2015		2016		2017		2018		2019		Thereafter		Total
		(in thousands)
	Operating leases	$	1,482	$	670	$	186	$	60	$	15	$	—	$	2,413
	Software licenses	4,989		4,555		4,275		4,175		—		—		17,994
	Total	$	6,471	$	5,225	$	4,461	$	4,235	$	15	$	—	$	20,407

COMPUTATION_OF_NET_LOSS_PER_SH2

COMPUTATION OF NET LOSS PER SHARE Schedule of Dilutive Common Shares Excluded from the Computation (Details)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	5,702	15,622
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	2,781	3,038
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	2,452	3,034
ESPP Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	469	365
2014 Convertible debentures
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	7,298
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	0	1,887

INVENTORIES_INVENTORY_Details

INVENTORIES INVENTORY (Details) (USD $)	Dec. 31, 2014	Sep. 30, 2014
In Thousands, unless otherwise specified
Inventory, net:
Raw materials	$1,399	$1,840
Work-in-process	5,140	4,503
Finished goods	9,166	6,449
Total inventories	$15,705	$12,792

DEBT_Schedule_of_Longterm_Debt

DEBT Schedule of Long-term Debt Instruments (Details) (USD $)	Dec. 31, 2014	Sep. 30, 2014
In Thousands, unless otherwise specified
Debt Instrument [Line Items]
Term A and B Loans, bearing interest at 9.0%, interest payable quarterly in arrears, due August 2016	$16,508	$16,417
Total debt, net	16,508	49,144
Notes Payable to Banks [Member] | Debt Instrument, Term A and B Loans [Member]
Debt Instrument [Line Items]
Stated rate	9.00%	9.00%
Term A and B Loans, bearing interest at 9.0%, interest payable quarterly in arrears, due August 2016	16,508	16,417
Notes Payable to Banks [Member] | Term A Loan [Member]
Debt Instrument [Line Items]
Stated rate	9.00%	9.00%
Notes Payable to Banks [Member] | Term B Loan [Member]
Debt Instrument [Line Items]
Stated rate	9.00%	9.00%
Convertible Debt [Member] | 2014 Debentures [Member]
Debt Instrument [Line Items]
Stated rate		8.00%
2014 Debentures, convertible, 8.0% fixed-rate notes, repaid in October 2014	$0	$32,727

DEBT_Schedule_of_Outstanding_D

DEBT Schedule of Outstanding Debt (Details) (Notes Payable to Banks [Member], USD $)	Dec. 31, 2014	Sep. 30, 2014
In Thousands, unless otherwise specified	Rate
Term A Loan [Member]
Debt Instrument [Line Items]
Principal	$7,857
Unamortized debt discount	-59
Carrying value	7,798	7,791
Annual effective interest rate	9.50%
Term B Loan [Member]
Debt Instrument [Line Items]
Principal	9,342
Unamortized debt discount	-632
Carrying value	8,710	8,626
Annual effective interest rate	13.50%
Debt Instrument, Term A and B Loans [Member]
Debt Instrument [Line Items]
Principal	17,199
Unamortized debt discount	-691
Carrying value	$16,508

DEBT_Narrative_Details

DEBT Narrative (Details) (USD $)	3 Months Ended		12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2014	Nov. 05, 2013
Debt Instrument [Line Items]
Loss on extinguishment of debt	$0	$1,594,000
Term A and B Loans
Debt Instrument [Line Items]
Unrestricted cash balance			8,000,000
Minimum quarterly revenue			10,000,000
Fee amount				300,000
Term A and B Loans | Debt Instrument, Redemption, Period Two [Member]
Debt Instrument [Line Items]
Prepayment fee percent			3.00%
Term A and B Loans | Debt Instrument, Redemption, Period Three [Member]
Debt Instrument [Line Items]
Prepayment fee percent			2.00%
Convertible Debt [Member] | 2014 Debentures [Member]
Debt Instrument [Line Items]
Repurchase amount				$13,700,000
Prepayment repurchase percentage				107.00%

FAIR_VALUE_MEASUREMENTS_Schedu

FAIR VALUE MEASUREMENTS Schedule of the fair value of the loans (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014
Term A Loan [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value inputs, discount rate (percent)	4.50%
Term B Loan [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value inputs, discount rate (percent)	4.50%
Reported Value Measurement [Member] | Term A Loan [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	7,798	$7,791
Reported Value Measurement [Member] | Term B Loan [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	8,710	8,626
Reported Value Measurement [Member] | Convertible Debt [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	0	32,727
Estimate of Fair Value, Fair Value Disclosure [Member] | Term A Loan [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	8,595	8,755
Estimate of Fair Value, Fair Value Disclosure [Member] | Term B Loan [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	10,055	10,245
Estimate of Fair Value, Fair Value Disclosure [Member] | Convertible Debt [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	0	$33,040

STOCKHOLDERS_EQUITY_Details

STOCKHOLDERS' EQUITY (Details) (USD $)	Dec. 31, 2014	Sep. 30, 2014
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
Stock Options [Member]
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Common stock, shares reserved for future issuance	7,800,000
ESPP Shares [Member]
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Common stock, shares reserved for future issuance	3,000,000

STOCK_BASED_COMPENSATION_Stock

STOCK BASED COMPENSATION Stock Options Narrative (Details) (USD $)	3 Months Ended
Share data in Millions, except Per Share data, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for future grant	0.8
Unrecognized stock-based compensation expense	$7,700,000
Closing stock price used to calculate total pretax intrinsic value	$3.78	$3.60
In-the-money stock options exercisable	0.8
Weighted average exercise price, Granted
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period over which the unearned stock-based compensation is expected to be recognized	0 years 11 months 12 days
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period over which the unearned stock-based compensation is expected to be recognized	2 years 1 month 20 days
Total Stockholders' Equity
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Repurchase and retirement of restricted stock units for payroll taxes	($1,068,000)

STOCK_BASED_COMPENSATION_Compe

STOCK BASED COMPENSATION Compensation costs related to the stock-based compensations plans (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$1,831	$1,265
Cost of revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	230	184
Engineering, research and development [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	671	485
Selling, general and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$930	$596

STOCK_BASED_COMPENSATION_Activ

STOCK BASED COMPENSATION Activity under all stock option plans (Details) (USD $)	3 Months Ended	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding, Shares, Beginning balance	2,940
Options outstanding, Weighted average exercise price, Beginning balance	$7.46
Options outstanding, Weighted average remaining contractual life (in years), Beginning balance	7 years 0 months 29 days	7 years 0 months 0 days
Options outstanding, Aggregate intrinsic value, Beginning balance	$2,059
Shares, Granted	0
Weighted average exercise price, Granted
Shares, Exercised	-14
Weighted average exercise price, Exercised	$2.41
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	20
Shares, Cancelled or expired	-145
Weighted average exercise price, Cancelled or expired	$54.96
Options outstanding, Shares, Ending balance	2,781	2,940
Options outstanding, Weighted average exercise price, Ending balance	$5.01	$7.46
Options outstanding, Weighted average remaining contractual life (in years), Ending balance	7 years 0 months 29 days	7 years 0 months 0 days
Options outstanding, Aggregate intrinsic value, Ending balance	2,353	2,059
Options exercisable, Shares, Ending balance	1,774
Options exercisable, Weighted average exercise price, Ending balance	$6.46
Options exercisable, Weighted average remaining contractual life (in years), Ending balance	6 years 1 month 20 days
Aggregate intrinsic value, Options exercisable	$1,014

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
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation recognized	$1,831	$1,265
Stock Options And Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement By Share-based Payment award, Estimated Forfeiture Rate			4.20%
Employee Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation recognized	$199	$155
Expected life (in years)	6 months	6 months
Expected volatility:	44.80%	50.30%
Expected dividend	0.00%	0.00%
Risk-free interest rate	0.05%	0.08%

STOCK_BASED_COMPENSATION_Summa1

STOCK BASED COMPENSATION Summary of Exercise Prices (Details) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 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	$66.40
Number of Options Outstanding	2,781
Outstanding Options, Weighted Average Remaining Contractual Term	7 years 0 months 29 days
Outstanding Options, Weighted Average Exercise Price	$5.01
Number of Exercisable Options	1,774
Exercisable Options, Weighted Average Exercise Price	$6.46
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	409
Outstanding Options, Weighted Average Remaining Contractual Term	8 years 2 months 8 days
Outstanding Options, Weighted Average Exercise Price	$2.11
Number of Exercisable Options	187
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	8 years 11 months 8 days
Outstanding Options, Weighted Average Exercise Price	$2.53
Number of Exercisable Options	239
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	732
Outstanding Options, Weighted Average Remaining Contractual Term	6 years 6 months 7 days
Outstanding Options, Weighted Average Exercise Price	$3.45
Number of Exercisable Options	700
Exercisable Options, Weighted Average Exercise Price	$3.49
4.60 - 30.60 [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	$30.60
Number of Options Outstanding	584
Outstanding Options, Weighted Average Remaining Contractual Term	4 years 7 months 6 days
Outstanding Options, Weighted Average Exercise Price	$7.58
Number of Exercisable Options	579
Exercisable Options, Weighted Average Exercise Price	$7.60
33.60 - 66.40 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range Limit	$33.60
Exercise Price Range, Upper Range Limit	$66.40
Number of Options Outstanding	69
Outstanding Options, Weighted Average Remaining Contractual Term	10 months 17 days
Outstanding Options, Weighted Average Exercise Price	$52.36
Number of Exercisable Options	69
Exercisable Options, Weighted Average Exercise Price	$52.36

STOCK_BASED_COMPENSATION_Restr

STOCK BASED COMPENSATION Restricted Stock Units Narrative (Details) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation recognized	$1,831,000	$1,265,000
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	3,000,000
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	($1,068,000)

STOCK_BASED_COMPENSATION_Summa2

STOCK BASED COMPENSATION Summary of restricted stock unit activity (Details) (Restricted Stock Units (RSUs) [Member], USD $)	3 Months Ended	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Restricted stock units, Restricted Stock Units, Beginning balance	2,328
Restricted stock units, Weighted Average Grant-Date Fair Value per Share, Beginning balance	$2.61
Weighted average remaining contractual life (in years), beginning balance	1 year 4 months 17 days	11 months 15 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value	$8,380,000
Restricted Stock Units, Awarded	1,129
Weighted Average Grant-Date Fair Value per Share, Awarded	$3.34
Restricted Stock Units, Released	-994
Weighted Average Grant-Date Fair Value per Share, Released	$3.04
Restricted Stock Units, Forfeited	-11
Weighted Average Grant-Date Fair Value per Share, Forfeited	$2.80
Restricted stock units, Restricted Stock Units, Ending balance	2,452	2,328
Restricted stock units, Weighted Average Grant-Date Fair Value per Share, Ending balance	$2.77	$2.61
Weighted average remaining contractual life (in years), ending balance	1 year 4 months 17 days	11 months 15 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value	$9,267,000	$8,380,000

STOCK_BASED_COMPENSATION_Emplo

STOCK BASED COMPENSATION Employee Stock Purchase Plan Narrative (Details) (USD $)	3 Months Ended		0 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Aug. 02, 2014	Jan. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation recognized	$1,831	$1,265
Employee Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (in years)	6 months	6 months
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	3,000,000
Discount from market price			15.00%
Stock compensation recognized	$199	$155
Expected volatility:	44.80%	50.30%
Expected dividend	0.00%	0.00%
Risk-free interest rate	0.05%	0.08%
Subsequent Event [Member] | Employee Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued in period				468,609
Per share price of ESPP shares issued				$2.50

INCOME_TAXES_Narrative_Details

INCOME TAXES Narrative (Details) (USD $)	1 Months Ended		3 Months Ended
In Millions, except Share data, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012	Dec. 31, 2014	Dec. 31, 2013
Operating Loss Carryforwards [Line Items]
Effective Income Tax Rate, Continuing Operations			0.90%	-3.60%
Issuance of common stock, net of offering costs (in shares)	18,720,000	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			$25.40
Internal Revenue Service (IRS) [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards			0
Net operating loss annual limit			1.4
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards			27.4
Foreign Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards			$119.10

SEGMENT_AND_GEOGRAPHIC_INFORMA2

SEGMENT AND GEOGRAPHIC INFORMATION Schedule of Revenue by Major Customers by Reporting Segments (Details)	3 Months Ended		12 Months Ended	3 Months Ended
	Dec. 31, 2014		Sep. 30, 2014	Dec. 31, 2013
	segment
	major_customer
Segment Reporting [Abstract]
Number of Operating Segments	1
Revenue from External Customer [Line Items]
Number of Major Customers	2		2
Customer Concentration Risk [Member] | Accounts Receivable [Member]
Revenue from External Customer [Line Items]
Concentration Risk, Percentage	31.00%		24.30%
Major Customers, WPG [Member] | Customer Concentration Risk [Member] | Sales [Member]
Revenue from External Customer [Line Items]
Concentration Risk, Percentage	25.20%	[1]		23.80%	[1]
[1]	Distributor

SEGMENT_AND_GEOGRAPHIC_INFORMA3

SEGMENT AND GEOGRAPHIC INFORMATION Net Revenues By Geographic Area (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Revenue from External Customer [Line Items]
Net revenues	$24,755	$27,083
United States [Member]
Revenue from External Customer [Line Items]
Net revenues	5,052	6,559
China, including Hong Kong [Member]
Revenue from External Customer [Line Items]
Net revenues	5,531	7,994
Taiwan [Member]
Revenue from External Customer [Line Items]
Net revenues	7,651	5,651
Asia Pacific [Member]
Revenue from External Customer [Line Items]
Net revenues	3,638	3,141
Europe, Middle East and Africa [Member]
Revenue from External Customer [Line Items]
Net revenues	$2,883	$3,738

SEGMENT_AND_GEOGRAPHIC_INFORMA4

SEGMENT AND GEOGRAPHIC INFORMATION Product Revenues By The Three Product Lines (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
	product_line
Revenue from External Customers [Line Items]
Number Of Product Lines	3
Product revenues	$23,969	$24,863
Ethernet switching [Member]
Revenue from External Customers [Line Items]
Product revenues	10,219	8,949
Connectivity [Member]
Revenue from External Customers [Line Items]
Product revenues	12,171	11,336
Transport processing [Member]
Revenue from External Customers [Line Items]
Product revenues	$1,579	$4,578

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Standard Product Warranty Period	1 year
Operating leases
Remaining in 2015	$1,482
2016	670
2017	186
2018	60
2019	15
Thereafter	0
Total	2,413
Software licenses
Remaining in 2015	4,989
2016	4,555
2017	4,275
2018	4,175
2019	0
Thereafter	0
Total	17,994
Total
Remaining in 2015	6,471
2016	5,225
2017	4,461
2018	4,235
2019	15
Thereafter	0
Total	$20,407