Income Taxes Income Taxes (Tables)

12 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

Schedule of Components of the Provision (Benefit) for Income Taxes

The components of the provision (benefit) for income taxes are as follows:

	Year Ended September 30,
	2015			2014			2013
	(dollars in thousands)
Current:
Domestic Federal	$	(320	)	$	370		$	(150	)
Foreign	500			530			800
Foreign withholding taxes	1,240			—			—
Domestic state	—			80			(110		)
Total current	1,420			980			540
Deferred:
Domestic Federal	720			(490		)	(290		)
Foreign	(210		)	750			1,610
Domestic state	(20		)	—			—
Total deferred	490			260			1,320
Total provision	$	1,910		$	1,240		$	1,860

Reconciliation of Actual Income Taxes to Expected Federal Corporate Income Taxes

	Year Ended September 30,
	2015			2014			2013
	(dollars in thousands)
Tax benefit at the U.S. rate	$	(1,630	)	$	(4,440	)	$	(6,750	)
Effect of permanent book-tax differences	(1,570		)	30			970
State tax provision	(40		)	80			(110		)
Valuation allowance for net deferred tax assets	2,490			3,900			5,850
Uncertain tax items	330			370			450
Foreign tax rate differential	1,890			1,000			1,440
Other items	440			300			10
	$	1,910		$	1,240		$	1,860

Schedule of Deferred Tax Assets and Deferred Tax Liability

The tax effects of temporary book-tax differences that give rise to significant portions of the deferred tax assets and deferred tax liability are as follows:

	Year Ended September 30,
	2015			2014			2013
	(dollars in thousands)
Deferred tax assets - current:
Capitalized inventory costs	$	340		$	230		$	130
Inventory write-downs	4,840			950			620
Accrued warranty	280			180			200
Deferred profits	1,180			1,460			800
Accruals and reserves not currently deductible	1,920			520			490
Deferred tax assets - current	$	8,560		$	3,340		$	2,240
Valuation allowance	(6,510		)	(2,280		)	(910		)
Deferred tax assets - current, net of valuation allowance	$	2,050		$	1,060		$	1,330
Deferred tax assets (liabilities)- non-current:
Stock option expense	$	680		$	670		$	700
Book vs. tax basis of acquired assets	(1,350		)	(1,210		)	(1,130		)
Federal net operating loss caryforwards	5,570			900			—
Foreign and state net operating losses	10,550			8,070			9,000
Book vs. tax depreciation and amortization	(2,030		)	(10		)	60
Foreign tax credits	3,950			—			520
Other deferred tax assets	360			2,950			(350		)
Total deferred tax assets - non-current	17,730			11,370			8,800
Valuation allowance	(17,300		)	(10,070		)	(7,540		)
Deferred tax assets (liabilities) - non-current, net of valuation allowance	$	430		$	1,300		$	1,260

Changes in Deferred Tax Valuation Allowance

Changes in the deferred tax valuation allowance are as follows:

	Year Ended September 30,
	2015		2014		2013
	(dollars in thousands)
Balance at the beginning of the year	$	12,350	$	8,450	$	2,600
Additions to valuation allowance	11,460		3,900		5,850
Balance at the end of the year	$	23,810	$	12,350	$	8,450

Schedule of Unrecognized Tax Benefit Liabilities

A reconciliation of the beginning and ending amount of our unrecognized tax benefits is summarized as follows:

	Year Ended September 30,
	2015		2014		2013
	(dollars in thousands)
Balance at beginning of the year	$	3,180	$	2,810	$	2,360
Additions related to tax positions taken in prior years	330		370		530
Reductions due to lapse of statute of limitations	—		—		(80		)
Balance at the end of the year	$	3,510	$	3,180	$	2,810