þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 41-1532464 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
11001 Bren Road East | ||
Minnetonka, Minnesota | 55343 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer o | Accelerated filer þ | Non-accelerated filer o | Smaller reporting company o | |||
(Do not check if a smaller reporting company) |
Page | |
Three months ended December 31, | |||||||
2015 | 2014 | ||||||
(in thousands, except per share data) | |||||||
Revenue: | |||||||
Hardware product | $ | 48,247 | $ | 44,933 | |||
Service | 2,012 | 2,285 | |||||
Total revenue | 50,259 | 47,218 | |||||
Cost of sales: | |||||||
Cost of hardware product | 24,710 | 23,112 | |||||
Cost of service | 1,192 | 1,549 | |||||
Total cost of sales | 25,902 | 24,661 | |||||
Gross profit | 24,357 | 22,557 | |||||
Operating expenses: | |||||||
Sales and marketing | 8,518 | 10,235 | |||||
Research and development | 7,838 | 7,083 | |||||
General and administrative | 4,061 | 4,775 | |||||
Restructuring charge | 651 | — | |||||
Total operating expenses | 21,068 | 22,093 | |||||
Operating income | 3,289 | 464 | |||||
Other income, net: | |||||||
Interest income, net | 100 | 38 | |||||
Other income, net | 123 | 388 | |||||
Total other income, net | 223 | 426 | |||||
Income from continuing operations, before income taxes | 3,512 | 890 | |||||
Income tax provision (benefit) | 381 | (128 | ) | ||||
Income from continuing operations | 3,131 | 1,018 | |||||
Income (loss) from discontinued operations, after income taxes | 3,319 | (1,357 | ) | ||||
Net income (loss) | $ | 6,450 | $ | (339 | ) | ||
Basic net income (loss) per common share: | |||||||
Continuing operations | $ | 0.12 | $ | 0.04 | |||
Discontinued operations | $ | 0.13 | $ | (0.06 | ) | ||
Total | $ | 0.25 | $ | (0.01 | ) | ||
Diluted net income (loss) per common share: | |||||||
Continuing operations | $ | 0.12 | $ | 0.04 | |||
Discontinued operations | $ | 0.13 | $ | (0.06 | ) | ||
Total | $ | 0.25 | $ | (0.01 | ) | ||
Weighted average common shares: | |||||||
Basic | 25,331 | 24,150 | |||||
Diluted | 26,171 | 24,462 |
Three months ended December 31, | |||||||
2015 | 2014 | ||||||
(in thousands) | |||||||
Net income (loss) | $ | 6,450 | $ | (339 | ) | ||
Other comprehensive loss, net of tax: | |||||||
Foreign currency translation adjustment | (1,867 | ) | (2,373 | ) | |||
Change in net unrealized loss on investments | (63 | ) | (29 | ) | |||
Less income tax benefit | 23 | 11 | |||||
Reclassification of realized gain on investments included in net income (1) | (7 | ) | — | ||||
Less income tax benefit (2) | 3 | — | |||||
Other comprehensive loss, net of tax | (1,911 | ) | (2,391 | ) | |||
Comprehensive income (loss) | $ | 4,539 | $ | (2,730 | ) |
December 31, 2015 | September 30, 2015 | ||||||
(in thousands, except share data) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 52,190 | $ | 45,018 | |||
Marketable securities | 50,202 | 47,191 | |||||
Accounts receivable, net | 24,931 | 27,788 | |||||
Inventories | 30,115 | 31,877 | |||||
Deferred tax assets | — | 3,252 | |||||
Receivable from sale of business | 2,952 | — | |||||
Other | 4,734 | 3,435 | |||||
Current assets of discontinued operations | — | 1,624 | |||||
Total current assets | 165,124 | 160,185 | |||||
Marketable securities, long-term | 11,524 | 13,626 | |||||
Property, equipment and improvements, net | 14,156 | 14,339 | |||||
Identifiable intangible assets, net | 5,061 | 2,648 | |||||
Goodwill | 110,244 | 100,183 | |||||
Deferred tax assets | 7,927 | 6,255 | |||||
Receivable from sale of business | 1,930 | — | |||||
Other | 300 | 250 | |||||
Non-current assets of discontinued operations | — | 2,874 | |||||
Total assets | $ | 316,266 | $ | 300,360 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 6,904 | $ | 6,673 | |||
Income taxes payable | 151 | 828 | |||||
Accrued compensation | 5,248 | 10,156 | |||||
Accrued warranty | 968 | 1,014 | |||||
Contingent consideration on acquired business | 833 | — | |||||
Other | 4,201 | 3,037 | |||||
Current liabilities of discontinued operations | — | 1,481 | |||||
Total current liabilities | 18,305 | 23,189 | |||||
Income taxes payable | 1,349 | 1,546 | |||||
Deferred tax liabilities | 720 | 135 | |||||
Contingent consideration on acquired business | 9,567 | — | |||||
Other non-current liabilities | 809 | 457 | |||||
Non-current liabilities of discontinued operations | — | 95 | |||||
Total liabilities | 30,750 | 25,422 | |||||
Contingencies (see Note 11) | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $.01 par value; 2,000,000 shares authorized; none issued and outstanding | — | — | |||||
Common stock, $.01 par value; 60,000,000 shares authorized; 32,229,363 and 31,534,198 shares issued | 322 | 315 | |||||
Additional paid-in capital | 233,544 | 227,367 | |||||
Retained earnings | 130,854 | 124,404 | |||||
Accumulated other comprehensive loss | (24,524 | ) | (22,613 | ) | |||
Treasury stock, at cost, 6,489,587 and 6,487,248 shares | (54,680 | ) | (54,535 | ) | |||
Total stockholders’ equity | 285,516 | 274,938 | |||||
Total liabilities and stockholders’ equity | $ | 316,266 | $ | 300,360 |
Three months ended December 31, | |||||||
2015 | 2014 | ||||||
(in thousands) | |||||||
Operating activities: | |||||||
Net income (loss) | $ | 6,450 | $ | (339 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation of property, equipment and improvements | 724 | 752 | |||||
Amortization of identifiable intangible assets | 468 | 770 | |||||
Stock-based compensation | 816 | 1,184 | |||||
Excess tax benefits from stock-based compensation | (190 | ) | — | ||||
Deferred income tax provision | 1,300 | 412 | |||||
Gain on sale of business | (2,912 | ) | — | ||||
Bad debt/product return provision | 168 | 30 | |||||
Inventory obsolescence | 409 | 230 | |||||
Restructuring charge | 651 | — | |||||
Other | 40 | (6 | ) | ||||
Changes in operating assets and liabilities | (4,369 | ) | 2,310 | ||||
Net cash provided by operating activities | 3,555 | 5,343 | |||||
Investing activities: | |||||||
Purchase of marketable securities | (8,079 | ) | (12,135 | ) | |||
Proceeds from maturities of marketable securities | 7,106 | 9,321 | |||||
Proceeds from sale of business | 2,866 | — | |||||
Acquisition of business, net of cash acquired | (2,860 | ) | — | ||||
Purchase of property, equipment, improvements and certain other intangible assets | (545 | ) | (1,469 | ) | |||
Net cash used in investing activities | (1,512 | ) | (4,283 | ) | |||
Financing activities: | |||||||
Excess tax benefits from stock-based compensation | 190 | — | |||||
Proceeds from stock option plan transactions | 5,752 | 9 | |||||
Proceeds from employee stock purchase plan transactions | 301 | 261 | |||||
Purchases of common stock | (403 | ) | (2,257 | ) | |||
Net cash provided by (used in) financing activities | 5,840 | (1,987 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (711 | ) | (1,520 | ) | |||
Net increase (decrease) in cash and cash equivalents | 7,172 | (2,447 | ) | ||||
Cash and cash equivalents, beginning of period | 45,018 | 47,490 | |||||
Cash and cash equivalents, end of period | $ | 52,190 | $ | 45,043 | |||
Supplemental schedule of non-cash investing activities: | |||||||
Receivable related to sale of business | $ | 5,015 | $ | — | |||
Liability related to acquisition of business | $ | (10,550 | ) | $ | — |
• | certain intangible assets and the contingent consideration liability pending the finalization of valuation procedures; |
• | amounts for deferred tax assets and liabilities, pending the finalization of final tax returns. |
Cash | $ | 2,888 | |
Purchase price payable upon completion of diligence matters | 115 | ||
Fair value of contingent consideration on acquired business | 10,400 | ||
Total purchase price consideration | $ | 13,403 | |
Fair value of net tangible assets acquired | $ | 129 | |
Fair value of identifiable intangible assets acquired: | |||
Purchased and core technology | 2,000 | ||
Customer relationships | 900 | ||
Goodwill | 11,020 | ||
Deferred tax liabilities, net | (646 | ) | |
Total | $ | 13,403 |
Cash received at closing | $ | 4,000 | ||
Less: Employee related liabilities | (1,134 | ) | ||
Net cash proceeds at closing | 2,866 | |||
Present value of receivable due on October 23, 2016 | 2,941 | |||
Present value of receivable due on October 23, 2017 | 1,922 | |||
Receivable for selling price adjustments | 152 | |||
Total fair value of consideration received | 7,881 | |||
Less: | ||||
Net assets of Etherios, Inc. | (3,383 | ) | ||
Facility abandonment costs | (856 | ) | ||
Transaction costs, primarily professional fees | (730 | ) | ||
Gain on sale of discontinued operations, before income taxes | $ | 2,912 |
Three months ended December 31, | |||||||
2015 | 2014 | ||||||
Service revenue | $ | 891 | $ | 1,505 | |||
Cost of service | 713 | 2,140 | |||||
Gross profit (loss) | 178 | (635 | ) | ||||
Operating expenses: | |||||||
Sales and marketing | 148 | 557 | |||||
Research and development | 103 | 479 | |||||
General and administrative | 43 | 413 | |||||
Total operating expenses | 294 | 1,449 | |||||
Loss from discontinued operations, before income taxes | (116 | ) | (2,084 | ) | |||
Gain on sale of discontinued operations, before income taxes | 2,912 | — | |||||
Total income (loss) from discontinued operations, before income taxes | 2,796 | (2,084 | ) | ||||
Income tax benefit on discontinued operations | (523 | ) | (727 | ) | |||
Income (loss) from discontinued operations, after income taxes | $ | 3,319 | $ | (1,357 | ) |
September 30, 2015 | |||
Current assets: | |||
Accounts receivable, net | $ | 1,417 | |
Deferred tax assets | 127 | ||
Other current assets | 80 | ||
Total current assets | 1,624 | ||
Property, equipment and improvements, net | 18 | ||
Identifiable intangible assets, net | 1,531 | ||
Goodwill | 1,914 | ||
Deferred tax assets (1) | (589 | ) | |
Total assets of discontinued operations | $ | 4,498 | |
Current liabilities: | |||
Accounts payable | $ | 50 | |
Accrued compensation | 1,346 | ||
Other current liabilities | 85 | ||
Total current liabilities | 1,481 | ||
Other non-current liabilities | 95 | ||
Total liabilities of discontinued operations | $ | 1,576 |
Three months ended December 31, | |||||||
2015 | 2014 | ||||||
Amortization of identifiable intangible assets | $ | 30 | $ | 121 | |||
Depreciation of property, equipment and improvements | $ | — | $ | 6 | |||
Purchases of property, equipment, improvements and certain other intangible assets | $ | — | $ | (17 | ) |
Three months ended December 31, | |||||||
2015 | 2014 | ||||||
Numerator: | |||||||
Income from continuing operations | $ | 3,131 | $ | 1,018 | |||
Income (loss) from discontinued operations, after income taxes | 3,319 | (1,357 | ) | ||||
Net income (loss) | $ | 6,450 | $ | (339 | ) | ||
Denominator: | |||||||
Denominator for basic net income (loss) per common share — weighted average shares outstanding | 25,331 | 24,150 | |||||
Effect of dilutive securities: | |||||||
Stock options and restricted stock units | 840 | 312 | |||||
Denominator for diluted net income (loss) per common share — adjusted weighted average shares | 26,171 | 24,462 | |||||
Basic net income (loss) per common share | |||||||
Continuing operations | $ | 0.12 | $ | 0.04 | |||
Discontinued operations | $ | 0.13 | $ | (0.06 | ) | ||
Net income (loss) | $ | 0.25 | $ | (0.01 | ) | ||
Diluted net income (loss) per common share | |||||||
Continuing operations | $ | 0.12 | $ | 0.04 | |||
Discontinued operations | $ | 0.13 | $ | (0.06 | ) | ||
Net income (loss) | $ | 0.25 | $ | (0.01 | ) |
December 31, 2015 | September 30, 2015 | ||||||
Accounts receivable, net: | |||||||
Accounts receivable | $ | 25,263 | $ | 28,073 | |||
Less allowance for doubtful accounts | 332 | 285 | |||||
Accounts receivable, net | $ | 24,931 | $ | 27,788 | |||
Inventories: | |||||||
Raw materials | $ | 23,922 | $ | 26,037 | |||
Work in process | 842 | 598 | |||||
Finished goods | 5,351 | 5,242 | |||||
Inventories | $ | 30,115 | $ | 31,877 |
Amortized Cost (1) | Unrealized Gains | Unrealized Losses | Fair Value (1) | ||||||||||||
Current marketable securities: | |||||||||||||||
Corporate bonds | $ | 32,844 | $ | 1 | $ | (60 | ) | $ | 32,785 | ||||||
Commercial paper | 7,990 | — | (6 | ) | 7,984 | ||||||||||
Certificates of deposit | 6,257 | 1 | — | 6,258 | |||||||||||
Government municipal bonds | 3,180 | — | (5 | ) | 3,175 | ||||||||||
Current marketable securities | 50,271 | 2 | (71 | ) | 50,202 | ||||||||||
Non-current marketable securities: | |||||||||||||||
Corporate bonds | 4,051 | — | (29 | ) | 4,022 | ||||||||||
Certificates of deposit | 7,526 | — | (24 | ) | 7,502 | ||||||||||
Non-current marketable securities | 11,577 | — | (53 | ) | 11,524 | ||||||||||
Total marketable securities | $ | 61,848 | $ | 2 | $ | (124 | ) | $ | 61,726 |
(1) | Included in amortized cost and fair value is purchased and accrued interest of $374. |
Amortized Cost (1) | Unrealized Gains | Unrealized Losses | Fair Value (1) | ||||||||||||
Current marketable securities: | |||||||||||||||
Corporate bonds | $ | 31,753 | $ | — | $ | (39 | ) | $ | 31,714 | ||||||
Commercial paper | 7,986 | — | (1 | ) | 7,985 | ||||||||||
Certificates of deposit | 6,253 | 8 | — | 6,261 | |||||||||||
Government municipal bonds | 1,232 | — | (1 | ) | 1,231 | ||||||||||
Current marketable securities | 47,224 | 8 | (41 | ) | 47,191 | ||||||||||
Non-current marketable securities: | |||||||||||||||
Corporate bonds | 4,138 | — | (12 | ) | 4,126 | ||||||||||
Certificates of deposit | 7,511 | 2 | (6 | ) | 7,507 | ||||||||||
Government municipal bonds | 1,996 | — | (3 | ) | 1,993 | ||||||||||
Non-current marketable securities | 13,645 | 2 | (21 | ) | 13,626 | ||||||||||
Total marketable securities | $ | 60,869 | $ | 10 | $ | (62 | ) | $ | 60,817 |
(1) | Included in amortized cost and fair value is purchased and accrued interest of $252. |
December 31, 2015 | |||||||||||||||
Less than 12 Months | More than 12 Months | ||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||
Corporate bonds | $ | 29,496 | $ | (88 | ) | $ | 5,000 | $ | (1 | ) | |||||
Commercial paper | 5,985 | (6 | ) | — | — | ||||||||||
Certificates of deposit | 10,728 | (22 | ) | 498 | (2 | ) | |||||||||
Government municipal bonds | 3,121 | (5 | ) | — | — | ||||||||||
Total | $ | 49,330 | $ | (121 | ) | $ | 5,498 | $ | (3 | ) |
September 30, 2015 | |||||||||||||||
Less than 12 Months | More than 12 Months | ||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||
Corporate bonds | $ | 33,664 | $ | (52 | ) | $ | — | $ | — | ||||||
Commercial paper | 5,987 | (1 | ) | — | — | ||||||||||
Certificates of deposit | 4,244 | (6 | ) | 499 | (1 | ) | |||||||||
Government municipal bonds | 3,159 | (3 | ) | — | — | ||||||||||
Total | $ | 47,054 | $ | (62 | ) | $ | 499 | $ | (1 | ) |
Total carrying value at | Fair Value Measurements Using Inputs Considered as | ||||||||||||||
December 31, 2015 | Level 1 | Level 2 | Level 3 | ||||||||||||
Cash equivalents: | |||||||||||||||
Money market | $ | 17,550 | $ | 17,550 | $ | — | $ | — | |||||||
Available-for-sale marketable securities: | |||||||||||||||
Corporate bonds | 36,807 | — | 36,807 | — | |||||||||||
Commercial paper | 7,984 | — | 7,984 | — | |||||||||||
Certificates of deposit | 13,760 | — | 13,760 | — | |||||||||||
Government municipal bonds | 3,175 | — | 3,175 | — | |||||||||||
Total cash equivalents and marketable securities measured at fair value | $ | 79,276 | $ | 17,550 | $ | 61,726 | $ | — | |||||||
Contingent consideration on acquired business | $ | (10,400 | ) | $ | — | $ | — | $ | (10,400 | ) |
Total carrying value at | Fair Value Measurements Using Inputs Considered as | ||||||||||||||
September 30, 2015 | Level 1 | Level 2 | Level 3 | ||||||||||||
Cash equivalents: | |||||||||||||||
Money market | $ | 14,436 | $ | 14,436 | $ | — | $ | — | |||||||
Available-for-sale marketable securities: | |||||||||||||||
Corporate bonds | 35,840 | — | 35,840 | — | |||||||||||
Commercial paper | 7,985 | — | 7,985 | — | |||||||||||
Certificates of deposit | 13,768 | — | 13,768 | — | |||||||||||
Government municipal bonds | 3,224 | — | 3,224 | — | |||||||||||
Total cash equivalents and marketable securities measured at fair value | $ | 75,253 | $ | 14,436 | $ | 60,817 | $ | — |
December 31, 2015 | September 30, 2015 | ||||||||||||||||||||||
Gross carrying amount | Accum. amort. | Net | Gross carrying amount | Accum. amort. | Net | ||||||||||||||||||
Purchased and core technology | $ | 47,190 | $ | (45,345 | ) | $ | 1,845 | $ | 45,449 | $ | (45,424 | ) | $ | 25 | |||||||||
License agreements | 18 | (4 | ) | 14 | 18 | (4 | ) | 14 | |||||||||||||||
Patents and trademarks | 11,491 | (10,550 | ) | 941 | 11,377 | (10,385 | ) | 992 | |||||||||||||||
Customer relationships | 17,827 | (15,566 | ) | 2,261 | 17,090 | (15,473 | ) | 1,617 | |||||||||||||||
Total | $ | 76,526 | $ | (71,465 | ) | $ | 5,061 | $ | 73,934 | $ | (71,286 | ) | $ | 2,648 |
2016 (nine months) | $ | 1,160 | |
2017 | 963 | ||
2018 | 574 | ||
2019 | 449 | ||
2020 | 215 | ||
2021 | 69 |
Three months ended December 31, | |||||||
2015 | 2014 | ||||||
Beginning balance, October 1 | $ | 100,183 | $ | 101,484 | |||
Acquisition of Bluenica Corporation | 11,020 | — | |||||
Foreign currency translation adjustment | (959 | ) | (724 | ) | |||
Ending balance, December 31 | $ | 110,244 | $ | 100,760 |
Unrecognized tax benefits as of September 30, 2015 | $ | 1,618 | |
Increases related to: | |||
Prior year income tax positions | 60 | ||
Decreases related to: | |||
Expiration of statute of limitations | (121 | ) | |
Unrecognized tax benefits as of December 31, 2015 | $ | 1,557 |
Balance at | Warranties | Settlements | Balance at | ||||||||||||
Period | October 1 | issued | made | December 31 | |||||||||||
Three months ended December 31, 2015 | $ | 1,014 | $ | 120 | $ | (166 | ) | $ | 968 | ||||||
Three months ended December 31, 2014 | $ | 862 | $ | 291 | $ | (203 | ) | $ | 950 |
Three months ended December 31, | |||||||
2015 | 2014 | ||||||
Cost of sales | $ | 54 | $ | 65 | |||
Sales and marketing | 199 | 338 | |||||
Research and development | 148 | 154 | |||||
General and administrative | 410 | 525 | |||||
Stock-based compensation before income taxes | 811 | 1,082 | |||||
Income tax benefit | (257 | ) | (422 | ) | |||
Stock-based compensation after income taxes | $ | 554 | $ | 660 |
Options Outstanding | Weighted Average Exercised Price | Weighted Average Contractual Term (in years) | Aggregate Intrinsic Value (1) | ||||||||
Balance at September 30, 2015 | 4,800 | $10.21 | |||||||||
Granted | 348 | 12.63 | |||||||||
Exercised | (611 | ) | 9.83 | ||||||||
Forfeited / Canceled | (426 | ) | 11.52 | ||||||||
Balance at December 31, 2015 | 4,111 | $10.34 | 4.9 | $ | 6,304 | ||||||
Exercisable at December 31, 2015 | 2,935 | $10.49 | 4.0 | $ | 4,223 |
Three months ended December 31, | |||
2015 | 2014 | ||
Weighted average per option grant date fair value | $4.30 | $2.91 | |
Assumptions used for option grants: | |||
Risk free interest rate | 1.85% | 1.77% - 1.85% | |
Expected term | 6.00 years | 6.00 years | |
Expected volatility | 32% | 35% - 36% | |
Weighted average volatility | 32% | 35% | |
Expected dividend yield | 0 | 0 |
Number of Awards | Weighted Average Grant Date Fair Value | |||||
Nonvested at September 30, 2015 | 543 | $ | 8.41 | |||
Granted | 121 | $ | 12.63 | |||
Vested | (104 | ) | $ | 7.79 | ||
Canceled | (91 | ) | $ | 8.11 | ||
Nonvested at December 31, 2015 | 469 | $ | 9.69 |
Q1 2016 Restructuring | |||||||||||
Employee Termination Costs | Other | Total | |||||||||
Balance at September 30, 2015 | $ | — | $ | — | $ | — | |||||
Restructuring charge | 480 | 171 | 651 | ||||||||
Balance at December 31, 2015 | $ | 480 | $ | 171 | $ | 651 |
Three months ended December 31, | |||||||||||||
2015 | 2014 | ||||||||||||
% of total revenue | % of total revenue | ||||||||||||
Total revenue | $ | 50,259 | 100.0 | % | $ | 47,218 | 100.0 | % | |||||
Income from continuing operations | $ | 3,131 | $ | 1,018 | |||||||||
Interest income, net | (100 | ) | (38 | ) | |||||||||
Income tax provision (benefit) | 381 | (128 | ) | ||||||||||
Depreciation and amortization | 1,162 | 1,395 | |||||||||||
EBITDA from continuing operations | $ | 4,574 | 9.1 | % | $ | 2,247 | 4.8 | % |
Three months ended December 31, | % incr. | ||||||||||||||
2015 | 2014 | (decr.) | |||||||||||||
Revenue: | |||||||||||||||
Hardware product | $ | 48,247 | 96.0 | % | $ | 44,933 | 95.2 | % | 7.4 | % | |||||
Service | 2,012 | 4.0 | 2,285 | 4.8 | (11.9 | ) | |||||||||
Total revenue | 50,259 | 100.0 | 47,218 | 100.0 | 6.4 | ||||||||||
Cost of sales: | |||||||||||||||
Cost of hardware product | 24,710 | 49.1 | 23,112 | 48.9 | 6.9 | ||||||||||
Cost of service | 1,192 | 2.4 | 1,549 | 3.3 | (23.0 | ) | |||||||||
Total cost of sales | 25,902 | 51.5 | 24,661 | 52.2 | 5.0 | ||||||||||
Gross profit | 24,357 | 48.5 | 22,557 | 47.8 | 8.0 | ||||||||||
Operating expenses | 21,068 | 41.9 | 22,093 | 46.8 | (4.6 | ) | |||||||||
Operating income | 3,289 | 6.6 | 464 | 1.0 | 608.8 | ||||||||||
Other income, net | 223 | 0.4 | 426 | 0.9 | (47.7 | ) | |||||||||
Income from continuing operations, before income taxes | 3,512 | 7.0 | 890 | 1.9 | 294.6 | ||||||||||
Income tax provision (benefit) | 381 | 0.8 | (128 | ) | (0.3 | ) | (397.7 | ) | |||||||
Income from continuing operations | 3,131 | 6.2 | % | 1,018 | 2.2 | % | 207.6 | % | |||||||
Income (loss) from discontinued operations, after income taxes | 3,319 | 6.6 | % | (1,357 | ) | (2.9 | )% | (344.6 | )% | ||||||
Net income (loss) | $ | 6,450 | 12.8 | % | $ | (339 | ) | (0.7 | )% | NM |
Three months ended December 31, | % incr. | ||||||||||||||
($ in thousands) | 2015 | 2014 | (decr.) | ||||||||||||
Cellular routers and gateways | $ | 12,160 | 25.2 | % | $ | 13,700 | 30.5 | % | (11.2 | )% | |||||
RF | 9,186 | 19.0 | 7,147 | 15.9 | 28.5 | ||||||||||
Embedded | 13,128 | 27.2 | 11,227 | 25.0 | 16.9 | ||||||||||
Network | 13,773 | 28.6 | 12,859 | 28.6 | 7.1 | ||||||||||
Total product revenue | $ | 48,247 | 100.0 | % | $ | 44,933 | 100.0 | % | 7.4 | % |
Three months ended December 31, | $ incr. | % incr. | |||||||||||
($ in thousands) | 2015 | 2014 | (decr.) | (decr.) | |||||||||
North America, primarily United States | $ | 30,568 | $ | 29,208 | $ | 1,360 | 4.7 | % | |||||
Europe, Middle East & Africa | 11,017 | 11,231 | (214 | ) | (1.9 | ) | |||||||
Asia | 5,124 | 5,403 | (279 | ) | (5.2 | ) | |||||||
Latin America | 3,550 | 1,376 | 2,174 | 158.0 | |||||||||
Total revenue | $ | 50,259 | $ | 47,218 | $ | 3,041 | 6.4 | % |
Three months ended December 31, | $ incr. | ||||||||||||||||
($ in thousands) | 2015 | 2014 | (decr.) | ||||||||||||||
Sales and marketing | $ | 8,518 | 16.9 | % | $ | 10,235 | 21.7 | % | $ | (1,717 | ) | ||||||
Research and development | 7,838 | 15.6 | % | 7,083 | 15.0 | % | 755 | ||||||||||
General and administrative | 4,061 | 8.1 | % | 4,775 | 10.1 | % | (714 | ) | |||||||||
Restructuring | 651 | 1.3 | % | — | — | % | 651 | ||||||||||
Total operating expenses | $ | 21,068 | 41.9 | % | $ | 22,093 | 46.8 | % | $ | (1,025 | ) |
Three months ended December 31, | % increase | |||||||
2015 | 2014 | (decrease) | ||||||
Euro | 1.0958 | 1.2503 | (12.4 | )% | ||||
British Pound | 1.5181 | 1.5846 | (4.2 | )% | ||||
Japanese Yen | 0.0082 | 0.0088 | (6.8 | )% | ||||
Canadian Dollar | 0.7493 | NA | NA |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of a Publicly Announced Program | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program | |||||
October 1, 2015 - October 31, 2015 (1) | 10,086 | $12.4000 | — | $0.00 | |||||
November 1, 2015 - November 30, 2015 (1) | 8,117 | $12.6039 | — | $0.00 | |||||
December 1, 2015 - December 31, 2015 (1) | 14,700 | $11.9301 | — | $0.00 | |||||
Total | 32,903 | $12.4034 | — | $0.00 |
(1) | All shares reported were forfeited by employees in connection with the satisfaction of tax withholding obligations related to the vesting of restricted stock units. |
1. | Spiro C. Lazarakis and Ahmed Nawaz were elected as directors for a three-year term. Voting for each of their elections was: | |||||||||
Name | Votes for: | Votes “Withheld” | Broker Non-Votes | |||||||
Spiro C. Lazarakis | 20,010,912 | 215,081 | 2,256,697 | |||||||
Ahmed Nawaz | 17,943,242 | 2,282,751 | 2,256,697 | |||||||
2. | The stockholders voted to approve the Digi International Inc. 2016 Omnibus Incentive Plan. The approval of the plan received 18,259,031 “for” votes and 1,955,043 “against” votes. 11,919 shares abstained from voting and there were 2,256,697 broker non-votes on this matter. | |||||||||
3. | A non-binding advisory vote regarding the executive compensation disclosed in our proxy statement for the annual meeting received 19,734,953 “for” votes, 456,523 “against” votes. 34,517 shares abstained from voting and there were 2,256,697 broker non-votes on this matter. | |||||||||
4. | The stockholders ratified the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year ending September 30, 2016 with 22,387,123 shares voting in favor of the ratification and 77,790 shares voting against the ratification. 17,777 shares abstained from voting on this matter. |
ITEM 6. | EXHIBITS |
Exhibit No. | Description | ||
2 | Stock Purchase Agreement with West Monroe Partners, LLC dated as of October 23, 2015 (1)* | ||
3 | (a) | Restated Certificate of Incorporation of the Company, as amended (2) | |
3 | (b) | Amended and Restated By-Laws effective December 17, 2014 (3) | |
4 | (a) | Share Rights Agreement, dated as of April 22, 2008, between the Company and Wells Fargo Bank, N.A., as Rights Agent (4) | |
4 | (b) | Form of Amended and Restated Certificate of Powers, Designations, Preferences and Rights of Series A Junior Participating Preferred Shares (5) | |
10 | (a) | Digi International Inc. 2016 Omnibus Incentive Plan (6)* | |
31 | (a) | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer | |
31 | (b) | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer | |
32 | Section 1350 Certification | ||
101.INS | XBRL Instance Document | ||
101.SCH | XBRL Taxonomy Extension Schema Document | ||
101.CAL | XBRL Taxonomy Calculation Linkbase Document | ||
101.DEF | XBRL Taxonomy Definition Linkbase Document | ||
101.LAB | XBRL Taxonomy Label Linkbase Document | ||
101.PRE | XBRL Taxonomy Presentation Linkbase Document |
(1) | Incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on October 29, 2015 (File No. 1-34033) |
(2) | Incorporated by reference to Exhibit 3(a) to the Company’s Annual Report on Form 10-K for the year ended September 30, 1993 (File No. 0-17972) |
(3) | Incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed December 5, 2014 (File No. 1-34033) |
(4) | Incorporated by reference to Exhibit 4(a) to the Company’s registration statement on Form 8-A filed on April 25, 2008 (File No. 1-34033) |
(5) | Incorporated by reference to Exhibit 4(b) to the Company’s registration statement on Form 8-A filed on April 25, 2008 (File No. 1-34033) |
(6) | Incorporated by reference to Appendix A to the Company’s definitive proxy statement on Schedule 14A filed December 11, 2015 (File No. 1-34033) |
DIGI INTERNATIONAL INC. | |||||
Date: | February 3, 2016 | By: | /s/ Michael C. Goergen | ||
Michael C. Goergen | |||||
Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer and Authorized Officer) |
Exhibit Number | Document Description | Form of Filing | ||
2 | Stock Purchase Agreement dated as of October 23, 2015 | Incorporated by Reference | ||
3 | (a) | Restated Certificate of Incorporation of the Company, as Amended | Incorporated by Reference | |
3 | (b) | Amended and Restated By-Laws effective December 17, 2014 | Incorporated by Reference | |
4 | (a) | Share Rights Agreement, dated as of April 22, 2008, between the Company and Wells Fargo Bank, N.A., as Rights Agent | Incorporated by Reference | |
4 | (b) | Form of Amended and Restated Certificate of Powers, Designations, Preferences and Rights of Series A Junior Participating Preferred Shares | Incorporated by Reference | |
10 | (a) | Digi International Inc. 2016 Omnibus Incentive Plan | Incorporated by Reference | |
31 | (a) | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer | Filed Electronically | |
31 | (b) | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer | Filed Electronically | |
32 | Section 1350 Certification | Filed Electronically | ||
101.INS | XBRL Instance Document | Filed Electronically | ||
101.SCH | XBRL Taxonomy Extension Schema Document | Filed Electronically | ||
101.CAL | XBRL Taxonomy Calculation Linkbase Document | Filed Electronically | ||
101.DEF | XBRL Taxonomy Definition Linkbase Document | Filed Electronically | ||
101.LAB | XBRL Taxonomy Label Linkbase Document | Filed Electronically | ||
101.PRE | XBRL Taxonomy Presentation Linkbase Document | Filed Electronically | ||
February 3, 2016 | /s/ Ronald E. Konezny | |||
Ronald E. Konezny | ||||
President and Chief Executive Officer |
February 3, 2016 | /s/ Michael C. Goergen | |||
Michael C. Goergen | ||||
Senior Vice President, Chief Financial Officer and Treasurer |
February 3, 2016 | ||||
/s/ Ronald E. Konezny | ||||
Ronald E. Konezny | ||||
President and Chief Executive Officer | ||||
/s/ Michael C. Goergen | ||||
Michael C. Goergen | ||||
Senior Vice President, Chief Financial Officer and Treasurer |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Jan. 29, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | DIGI INTERNATIONAL INC. | |
Entity Central Index Key | 0000854775 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 25,805,370 |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||
Statement of Comprehensive Income [Abstract] | |||||||
Net income (loss) | $ 6,450 | $ (339) | |||||
Other comprehensive loss, net of tax: | |||||||
Foreign currency translation adjustment | (1,867) | (2,373) | |||||
Change in net unrealized loss on investments | (63) | (29) | |||||
Less income tax benefit | 23 | 11 | |||||
Reclassification of realized loss on investments included in net income | [1] | (7) | 0 | ||||
Less income tax benefit | [2] | 3 | 0 | ||||
Other comprehensive loss, net of tax | (1,911) | (2,391) | |||||
Comprehensive income (loss) | $ 4,539 | $ (2,730) | |||||
|
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 32,229,363 | 31,534,198 |
Treasury stock, shares | 6,489,587 | 6,487,248 |
Basis of Presentation of Unaudited Interim Condensed Consolidated Financial Statements and Significant Accounting Policies |
3 Months Ended |
---|---|
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANTACCOUNTING POLICIES | BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The interim unaudited condensed consolidated financial statements included in this Form 10-Q have been prepared by Digi International Inc. (the “Company,” “Digi,” “we,” “our,” or “us”) pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures, normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto, including (but not limited to) the summary of significant accounting policies, presented in our Annual Report on Form 10-K for the year ended September 30, 2015 as filed with the SEC (“2015 Financial Statements”). On October 23, 2015, we sold all of the outstanding stock of our wholly owned subsidiary, Etherios Inc. (Etherios) to West Monroe Partners, LLC. Because the sale of Etherios represented a strategic shift that will have a major effect on our operations and financial results, we have classified our Etherios business as discontinued operations and have therefore segregated its operating results from continuing operations in our Condensed Consolidated Statement of Operations for all periods presented. We have also segregated the assets and liabilities of Etherios on our Condensed Consolidated Balance Sheet for September 30, 2015. For this first fiscal quarter ending December 31, 2015, we adopted Accounting Standards Update (“ASU”) 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” on a prospective basis. As required by ASU 2015-17, all deferred tax assets and liabilities are classified on a jurisdictional basis as non-current in our condensed consolidated balance sheets, which is a change from our historical presentation whereby certain of our deferred tax assets and liabilities were classified as current and the remainder were classified as non-current. Our prior periods were not retrospectively adjusted. The condensed consolidated financial statements presented herein reflect, in the opinion of management, all adjustments which consist only of normal, recurring adjustments necessary for a fair statement of the condensed consolidated balance sheets and condensed consolidated statements of operations, comprehensive income (loss) and cash flows for the periods presented. The condensed consolidated results of operations for any interim period are not necessarily indicative of results for the full year. The year-end condensed consolidated balance sheet data were derived from our 2015 Financial Statements, but do not include all disclosures required by U.S. GAAP. Recently Issued Accounting Pronouncements Adopted In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. ASU 2015-17 simplified the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as non-current in the balance sheet. The amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods and may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early adoption is permitted. We elected to early adopt ASU 2015-17 beginning this fiscal quarter ending December 31, 2015. Other than the revised balance sheet presentation of deferred tax assets and liabilities from current to non-current, the adoption of this standard did not have a material impact to our consolidated financial statements. In September 2015, FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments." To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments in this update eliminate the requirement to retrospectively account for those adjustments. The amendments in this update are effective for fiscal years beginning after December 15, 2015, including interim periods within those years, which for us will be the first fiscal quarter ending December 31, 2016. Earlier application is permitted for financial statements that have not been issued. We elected to early adopt ASU 2015-16 beginning this fiscal quarter ending December 31, 2015. The adoption of this standard did not have a material impact to our consolidated financial statements. 1. BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Not Yet Adopted In January 2016, FASB issued ASU 2016-01, “Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 will require equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income. The amendments in this update will also simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, eliminate the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet and require these entities to use the exit price notion when measuring fair value of financial instruments for disclosure purposes. This ASU would also change the presentation and disclosure requirements for financial instruments. In addition, this ASU clarifies the guidance related to valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The amendments in this Update are effective for fiscal years beinning after December 15, 2017, including interim periods within those fiscal years, which for us is the first fiscal quarter ending December 31, 2018. Early adoption is permitted for financial statements of fiscal years and interim periods that have not been issued. We are currently evaluating the impact of the adoption of ASU 2016-01. In July 2015, FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory." This provision would require inventory that was previously recorded using first-in, first-out (FIFO) to lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance is effective for fiscal years beginning after December 15, 2016 and interim periods within those years, which for us will be the first fiscal quarter ending December 31, 2017. The amendments in this guidance should be applied prospectively with earlier application permitted as of the beginning of an interim or annual period. We are currently evaluating the impact of the adoption of ASU 2015-11 and whether it would have a material impact on our consolidated financial statements. In April 2015, FASB issued ASU 2015-05, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” The new standard provides guidance to customers about whether a cloud computing arrangement includes a software license. If the arrangement does include a software license, the software license element of the arrangement should be accounted for in the same manner as the acquisition of other software licenses. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early adoption permitted. We expect to adopt this guidance beginning with our fiscal quarter ending December 31, 2016. We do not expect this guidance to have a material impact on our consolidated financial statements. In August 2014, FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern.” This guidance requires management to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. These amendments are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter, which for us, will be our annual period ended September 30, 2017. Early adoption is permitted. While we are evaluating the impact of the adoption of ASU 2014-15, we do not expect it to have an impact on our consolidated financial statements. In May 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This guidance provides a five-step analysis in determining when and how revenue is recognized so that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods and services. It also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14 "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date" which approved a one-year deferral of the effective date of ASU 2014-09. As a result of this deferral, ASU 2014-09 is effective for our fiscal 2019, including interim periods within that reporting period. The FASB also agreed to allow us to choose to adopt the standard effective for our fiscal 2018. We will adopt the guidance for our fiscal 2019 and are currently assessing the potential impact of adopting this ASU on our consolidated financial statements and related disclosures. |
Acquisition |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition | ACQUISITION Acquisition of Bluenica Corporation On October 5, 2015 we purchased all of the outstanding stock of Bluenica Corporation (“Bluenica”), a company focused on temperature monitoring of perishable goods in the food industry by using wireless sensors which are installed in grocery and convenience stores, restaurants, and in products during shipment and storage to ensure that quality, freshness and public health requirements are met. This acquisition forms the basis for our Digi Cold Chain solutions. The terms of the acquisition include an upfront cash payment together with earn-out payments. Cash of $2.9 million was paid at time of closing. The earn-out payments are scheduled to be paid in installments over a four-year period based on revenue achievement of the acquired business. Each of the earn-out payments will be calculated based on the revenue performance of Digi Cold Chain solutions for each respective earn-out period. The cumulative amount of these earn-out payments will not exceed $11.6 million. An additional payment, not to exceed $3.5 million, may also be due depending on revenue performance. The fair value of this contingent consideration was $10.4 million at December 31, 2015 (see Note 7 to the Condensed Consolidated Financial Statements). We have determined that the earn-out will be considered as part of the purchase price consideration as there are no continuing employment requirements associated with the earn-out. Costs related to the acquisition, which include legal, accounting and valuation fees, of approximately of $0.1 million have been charged directly to operations and are included in general and administrative expense in our Condensed Consolidated Statements of Operations in fiscal 2016. The purchase price was allocated to the estimated fair value of assets acquired and liabilities assumed. The purchase price allocation resulted in the recognition of $11.0 million of goodwill. We believe that the acquisition resulted in the recognition of goodwill because this is a complementary acquisition for us and will provide a source of recurring revenue in a new vertically focused solutions business. Bluenica’s operating results are included in our Consolidated Results of Operations from October 6, 2015. The Consolidated Balance Sheet as of December 31, 2015 reflects the allocation of the purchase price to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The Bluenica acquisition has been accounted for using the acquisition method of accounting which requires, among other things, that assets acquired and liabilities assumed pursuant to the stock purchase agreement be recognized at fair value as of the acquisition date. Certain estimated values are not yet finalized (see below) and are subject to change, which could be significant. We will finalize the amounts recognized as information necessary to complete the analysis is obtained. We expect to finalize these amounts not later than the end of our third quarter of fiscal 2016. The following items remain subject to change:
The following table summarizes the values of Bluenica assets acquired and liabilities assumed as of the acquisition date. To the extent previously discussed, such amounts are considered preliminary (in thousands):
2. ACQUISITION (CONTINUED) The weighted average useful life for all the identifiable intangibles listed above is 5.6 years. For purposes of determining fair value, the purchased and core technology identified above is assumed to have a useful life of five years and the customer relationships are assumed to have useful live of seven years. Useful lives for identifiable intangible assets are estimated at the time of acquisition based on the periods of time from which we expect to derive benefits from the identifiable intangible assets. We have determined that the Bluenica acquisition is not material to our consolidated results of operations or financial position, therefore, pro forma financial information is not required to be presented. |
Discontinued Operations |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | DISCONTINUED OPERATIONS On October 23, 2015, we sold all the outstanding stock of our wholly owned subsidiary, Etherios, Inc. (Etherios) to West Monroe Partners, LLC. We sold Etherios as part of a strategy to focus on providing highly reliable machine connectivity solutions for business-critical and mission-critical application environments. Etherios was included in our single operating segment. We sold Etherios for $9.0 million, less certain purchase price adjustments as described below. Of the total purchase price, $4.0 million, less employee related liabilities of approximately $1.1 million, was paid to us at closing. Below is a summary of the gain on sale subject to final working capital adjustments (in thousands):
The terms of the sale agreement include that West Monroe Partners LLC will pay the Company $3.0 million on October 23, 2016 and $2.0 million of October 23, 2017. The present value of these amounts is included with the total fair value of consideration received. These receivable amounts are unsecured and non-interest bearing. Goodwill has been included in in the net assets of Etherios, Inc. based on a relative fair value of Etherios, Inc. compared to the fair value of the Company. As a condition to the sale agreement, we retained the operating leases in the Dallas and Chicago locations. Digi is no longer using these facilities and has sublet the Dallas location to West Monroe Partners, LLC through April 30, 2016. Also in connection with the sale, we assigned our San Francisco lease to West Monroe Partners, LLC. A remaining potential obligation exists in the event of a default under the assigned lease, however, we believe the likelihood of a liability related to this lease is remote. As of December 31, 2015, the future minimum lease payments for the San Francisco lease are approximately $0.2 million. 3. DISCONTINUED OPERATIONS (CONTINUED) Income (loss) from discontinued operations, after tax, as presented in the Condensed Consolidated Statements of Operations for the three months ended December 31, 2015 and 2014 is as follows (in thousands):
Income tax benefit on discontinued operations for the three months ended December 31, 2015 was $0.5 million and primarily represents income tax benefits for deductible transaction costs, partially offset by a tax expense for equity awards for which we will not receive a tax deduction. For tax purposes, we expect that this transaction will result in a capital loss, as the tax basis of the Etherios stock was higher than the book basis of the assets that were sold. Since we do not expect to be able to utilize this capital loss in the five year carryforward period, a deferred tax asset offset by a full valuation allowance is expected to be recorded upon completion of the capital loss calculation. At September 30, 2015, the carrying amounts of major classes of assets and liabilities of discontinued operations included in the Consolidated Balance Sheet was as follows (in thousands):
(1) As of September 30, 2015, the we had a net deferred income tax asset related to the United States federal jurisdiction. That net deferred income tax asset position included a deferred income tax liability of $589 thousand related to Etherios, Inc., which was entirely in the United States federal tax jurisdiction. 3. DISCONTINUED OPERATIONS (CONTINUED) The following table presents amortization, depreciation and purchases of property, equipment, improvements and certain other intangible assets of the discontinued operations related to Etherios (in thousands):
|
Earnings Per Share |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE Basic net income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares result from dilutive common stock options and restricted stock units. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common shares. Since we reported discontinued operations, we used income from continuing operations as our control to determine whether potential common shares are dilutive or anti-dilutive. In our case for three months ended December 31, 2014, since we had income from continuing operations, we included all potentially dilutive common equivalent shares in our calculation of earnings per diluted share for income from continuing operations, loss on discontinued operations and net loss. The following table is a reconciliation of the numerators and denominators in the net income (loss) per common share calculations (in thousands, except per common share data):
For the three months ended December 31, 2015 and 2014, there were 902,084 and 5,676,561 potentially dilutive shares, respectively, related to stock options to purchase common shares that were not included in the above computation of diluted earnings per common share. This is because the options’ exercise prices were greater than the average market price of our common shares. |
Selected Balance Sheet Data |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Balance Sheet Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SELECTED BALANCE SHEET DATA | SELECTED BALANCE SHEET DATA (in thousands)
Inventories are stated at the lower of cost or market value, with cost determined using the first-in, first-out method. |
Marketable Securities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MARKETABLE SECURITIES | MARKETABLE SECURITIES Our marketable securities consist of certificates of deposit, commercial paper, corporate bonds and government municipal bonds. We analyze our available-for-sale marketable securities for impairment on an ongoing basis. When we perform this analysis, we consider factors such as the length of time and extent to which the securities have been in an unrealized loss position and the trend of any unrealized losses. We also consider whether an unrealized loss is a temporary loss or an other-than-temporary loss based on factors such as: (a) whether we have the intent to sell the security, (b) whether it is more likely than not that we will be required to sell the security before its anticipated recovery, or (c) permanent impairment due to bankruptcy or insolvency. In order to estimate the fair value for each security in our investment portfolio, we obtain quoted market prices and trading activity for each security where available. We obtain relevant information from our investment advisor and, if warranted, also may review the financial solvency of certain security issuers. As of December 31, 2015, 69 of our 81 securities that we held were trading below our amortized cost basis. We determined each decline in value to be temporary based upon the above described factors. We expect to realize the fair value of these securities, plus accrued interest, either at the time of maturity or when the security is sold. All of our current holdings are classified as available-for-sale marketable securities and are recorded at fair value on our consolidated balance sheet with the unrealized gains and losses recorded in accumulated other comprehensive loss. All of our current marketable securities will mature in less than one year and our non-current marketable securities will mature in less than three years. During the three months ended December 31, 2015 and 2014, we received proceeds from our available-for-sale marketable securities of $7.1 million and $9.3 million, respectively. At December 31, 2015 our marketable securities were (in thousands):
6. MARKETABLE SECURITIES (CONTINUED) At September 30, 2015 our marketable securities were (in thousands):
The following tables show the fair values and gross unrealized losses of our available-for-sale marketable securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category (in thousands):
|
Fair Value Measurements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. This standard also establishes a hierarchy for inputs used in measuring fair value. This standard maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability based on market data obtained from independent sources. Unobservable inputs are inputs that 7. FAIR VALUE MEASUREMENTS (CONTINUED) reflect our assumptions about the factors market participants would use in valuing the asset or liability based upon the best information available in the circumstances. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable for the asset or liability and their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 may also include certain investment securities for which there is limited market activity or a decrease in the observability of market pricing for the investments, such that the determination of fair value requires significant judgment or estimation. Fair value is applied to financial assets such as our marketable securities, which are classified and accounted for as available-for-sale. These items are stated at fair value at each reporting period using the above guidance. The following tables provide information by level for financial assets and liabilities that are measured at fair value on a recurring basis (in thousands):
Our money market funds, which have been determined to be cash equivalents, are measured at fair value using quoted market prices in active markets for identical assets and are therefore classified as Level 1 assets. We value our Level 2 assets using inputs that are based on market indices of similar assets within an active market. There were no transfers into or out of our Level 2 financial assets during the three months ended December 31, 2015. 7. FAIR VALUE MEASUREMENTS (CONTINUED) In connection with the Bluenica acquisition discussed in Note 2, we are required to make contingent payments over a period of up to four years, subject to Digi Cold Chain solutions achieving specified revenue thresholds. The fair value of the liability for contingent payments recognized upon acquisition was $10.4 million, and was estimated by discounting to present value the probability-weighted contingent payments expected to be made. Assumptions used in this calculation included the discount rate and various probability factors. This liability is considered to be a Level 3 financial liabiility that is re-measured each reporting period. Changes in the fair value of this liability will be included in SG&A expense in the consolidated statements of operations. The use of different assumptions, applying different judgment to matters that inherently are subjective and changes in future market conditions could result in different estimates of fair value of our securities, currently and in the future. If market conditions deteriorate, we may incur impairment charges for securities in our investment portfolio. |
Goodwill and Other Identifiable Intangible Assets, Net |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET | GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET Amortizable identifiable intangible assets were (in thousands):
Amortization expense was $0.4 million and $0.6 million for the three month periods ended December 31, 2015 and 2014, respectively. Amortization expense is recorded on our consolidated statements of operations within cost of sales and in general and administrative expense. Estimated amortization expense related to identifiable intangible assets for the remainder of fiscal 2016 and the five succeeding fiscal years is (in thousands):
The changes in the carrying amount of goodwill are (in thousands):
Goodwill is tested for impairment on an annual basis as of June 30, or more frequently if events or circumstances occur which could indicate impairment. The calculation of goodwill impairment requires us to make assumptions about the fair value of our one reporting unit, which historically has been approximated by using our market capitalization plus a control premium. Control premium assumptions require judgment and actual results may differ from assumed or estimated amounts. 8. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET (CONTINUED) Our test for potential goodwill impairment is a two-step approach. We estimate the fair value for our one reporting unit by comparing its fair value (market capitalization plus control premium) to our carrying value. If the carrying value of the reporting unit exceeds its estimated fair value, the second step of the goodwill impairment analysis requires us to measure the amount of the impairment loss. An impairment loss is calculated by comparing the implied fair value of the goodwill to its carrying amount. To calculate the implied fair value of goodwill, the fair value of the reporting unit’s assets and liabilities, excluding goodwill, is estimated. The excess of the fair value of the reporting unit over the amount assigned to its assets and liabilities, excluding goodwill, is the implied fair value of the reporting unit’s goodwill. At June 30, 2015, our market capitalization was $238.6 million compared to our carrying value of $270.6 million. Our market capitalization plus our estimated control premium of 35% (discussed in the paragraphs below) resulted in a fair value in excess of our carrying value by a margin of 19%. We concluded that no impairment was indicated and we were not required to complete the second step of the goodwill impairment analysis. No goodwill impairment charges were recorded. In June 2014, we performed a control premium study to determine the appropriate control premium to include in the calculation of fair value. We used a third party valuation firm to assist us in performing this control premium analysis. In order to estimate the range of control premiums appropriate for us, the following three methodologies were used: (1) analysis of individual transactions within our industry; (2) analysis of industry-wide data, and (3) analysis of global transaction data. Individual transactions in the Communication Equipment or Technology Hardware, Storage and Peripherals industries were used to find transactions of target companies that operated in similar markets and shared similar operating characteristics with us. Transaction screening criteria included selection of transactions with the following characteristics: •At least 50 percent of a target company’s equity sought by an acquirer, •Target company considered operating (not in bankruptcy), •Target company had publicly traded stock outstanding at the transaction date, and •Transactions announced between June 30, 2009 and the valuation date. In analyzing industry-wide data, transactions in the following three industries were identified that encompassed the products offered by us: Office Equipment and Computer Hardware, Communications, and Computer, Supplies and Services. Finally, control premiums were considered for both domestic and international transactions. The control premium analysis resulted in a range of control premium of 30 percent to 40 percent. We reviewed the data and concluded that a 35 percent control premium best represented the amount an investor would likely pay, over and above market capitalization, in order to obtain a controlling interest given the economic conditions at that time. Based on our industry knowledge, including recent industry merger and acquisition activity, we concluded that the control premium study that was performed as of June 2014 was still an appropriate study to use for our June 30, 2015 goodwill impairment assessment. If our stock price or control premium declines, the first step of our goodwill impairment analysis may fail. We have identified factors that could result in additional interim goodwill impairment testing. For example, we would perform the second step of the impairment testing if our stock price fell below certain thresholds for a significant period of time, or if our control premium significantly decreased. Events or circumstances may occur that could negatively impact our stock price, including changes in our anticipated revenues and profits and our ability to execute on our strategies. In addition, our control premium could decline due to changes in economic conditions in the technology industry or more generally in the financial markets. An impairment could have a material effect on our consolidated balance sheet and results of operations. We have had no goodwill impairment losses since the adoption of Accounting Standards Codification (ASC) 350, Intangibles-Goodwill and Others, in fiscal 2003. |
Income Taxes |
3 Months Ended | ||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES Income tax provision for continuing operations was $0.4 million for the three month period ended December 31, 2015. Net tax benefits specific to the three months ended December 31, 2015 were $0.7 million resulting from the reinstatement of the federal research and development tax credit for calendar year 2015 and reversal of tax reserves due to the expiration of statutes of limitation from U.S. and foreign tax jurisdictions. For the three month period ended December 31, 2015, our continuing operations effective tax rate before items specific to the period was less than the U.S. statutory rate due primarily in the mix of income between taxing jurisdictions, certain of which have lower statutory tax rates than the U.S., and reinstatement of the federal research and development tax credit. 9. INCOME TAXES (CONTINUED) Income tax benefit for continuing operations was $0.1 million for the three month period ended December 31, 2014. Net tax benefits specific to the period of $0.5 million included a reversal of reserves due to the expiration of statutes of limitation from U.S. and foreign tax jurisdictions and the reinstatement of the federal research and development tax credit for calendar year 2014. For the three month period ended December 31, 2014, our continuing operations effective tax rate before items specific to the period was more than the statutory rate primarily due to a mix of income between foreign jurisdications, an adjustment for certain foreign income taxes at the U.S. rate, and lower than expected benefits associated with certain state tax credits. Our effective tax rate will vary based on a variety of factors, including overall profitability, the geographical mix of income before taxes and related statutory tax rate in each jurisdiction, and tax items specific to the period, such as settlements of audits. We expect that we may record other benefits or expenses in the future that are specific to a particular quarter such as expiration of statutes of limitation, the completion of tax audits, or legislation that is enacted for both U.S. and foreign jurisdictions. During the three months ending December 31, 2015, we adopted ASU 2015-17 on a prospective basis. As required by ASU 2015-17, all deferred tax assets and liabilities are classified on a jurisdictional basis as non-current in our condensed consolidated balance sheets, which is a change from our historical presentation whereby certain of our deferred tax assets and liabilities were classified as current and the remainder were classified as non-current. Our prior periods were not retrospectively adjusted. A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands):
The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate is $1.3 million, after considering the impact of interest and deferred benefit items. We expect the change in the total amount of unrecognized tax benefits will be insignificant over the next 12 months. |
Product Warranty Obligation |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PRODUCT WARRANTY OBLIGATION | PRODUCT WARRANTY OBLIGATION In general, we warrant our products to be free from defects in material and workmanship under normal use and service. The warranty periods generally range from one to five years. We typically have the option to either repair or replace products we deem defective with regard to material or workmanship. Estimated warranty costs are accrued in the period that the related revenue is recognized based upon an estimated average per unit repair or replacement cost applied to the estimated number of units under warranty. These estimates are based upon historical warranty incidents and are evaluated on an ongoing basis to ensure the adequacy of the warranty accrual. The following table summarizes the activity associated with the product warranty accrual (in thousands) and is included on our Condensed Consolidated Balance Sheets within current liabilities:
We are not responsible for, and do not warrant that, custom software versions, created by original equipment manufacturer (OEM) customers based upon our software source code, will function in a particular way, will conform to any specifications or are fit for any particular purpose. Further, we do not indemnify these customers from any third-party liability as it relates to or arises from any customization or modifications made by the OEM customer. |
Contingencies |
3 Months Ended |
---|---|
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES On December 23, 2015, JSDQ Mesh Technologies LLC filed a complaint naming us as a defendant in federal court in the District of Delaware. The complaint included allegations against us and one other company pertaining to the infringement of four patents relating to mesh networking technology. The complaint seeks monetary and non-monetary relief. We cannot predict the outcome of this matter or estimate a range of loss at this time or whether it will have a materially adverse impact on our business prospects and our consolidated financial condition, results of operations or cash flow. In addition to the matter discussed above, in the normal course of business, we are subject to various claims and litigation. There can be no assurance that any claims by third parties, if proven to have merit, will not materially adversely affect our business, liquidity or financial condition. |
Stock-Based Compensation |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-based awards were granted under the 2014 Omnibus Incentive Plan (the “2014 Plan”) during the three months ended December 31, 2015 and 2014. Upon stockholder approval of the 2014 Plan, we ceased granting awards under any prior plan. The authority to grant options under the 2014 Plan and set other terms and conditions rests with the Compensation Committee of the Board of Directors. The 2014 Plan authorizes the issuance of up to 2,250,000 common shares in connection with awards of stock options, stock appreciation rights, restricted stock, restricted stock units, performance-based full value awards or other stock-based awards. Eligible participants include our employees, our affiliates, non-employee directors of our Company and any consultant or advisor who is a natural person and provides services to us or our affiliates. Options that have been granted under the 2014 Plan typically vest over a four year service period and will expire if unexercised after eight years from the date of grant. Restricted stock awards (RSU's) that have been granted to Directors typically vest in one year. RSU's that have been granted to executives and employees typically vest in November over a four-year period. Awards may be granted under the 2014 Plan until January 27, 2024. Options under the 2014 Plan can be granted as either incentive stock options (ISOs) or non-statutory stock options (NSOs). The exercise price of options and the grant date price of restricted stock shall be determined by our Compensation Committee but shall not be less than the fair market value of our common stock based on the closing price on the date of grant. Upon exercise, we issue new shares of stock. Our equity plans and corresponding forms of award agreements generally have provisions allowing employees to elect to satisfy tax withholding obligations through the delivery of shares, having us retain a portion of shares issuable under the award or paying cash to us for the withholding. During the three months ended December 31, 2015, our employees forfeited 32,903 shares in order to satisfy $0.4 million of withholding tax obligations related to stock-based compensation, pursuant to terms of awards under our board and shareholder-approved compensation plans. As of December 31, 2015, there were approximately 1,286,089 shares available for future grants under the 2014 Plan. Cash received from the exercise of stock options was $5.8 million during the three months ended December 31, 2015 and minimal during the three months ended December 31, 2014. There were $0.2 million in excess tax benefits from stock-based compensation for the three months ended December 31, 2015. There were no excess tax benefits from stock-based compensation during the three months ended December 31, 2014. We sponsor an Employee Stock Purchase Plan (the Purchase Plan), covering all domestic employees with at least 90 days of continuous service and who are customarily employed at least 20 hours per week. The Purchase Plan allows eligible participants the right to purchase common stock on a quarterly basis at the lower of 85% of the market price at the beginning or end of each three-month offering period. Employee contributions to the Purchase Plan were $0.3 million during both the three month periods ended December 31, 2015 and 2014. Pursuant to the Purchase Plan, 30,564 and 40,950 common shares were issued to employees during the three months ended December 31, 2015 and 2014, respectively. Shares are issued under the Purchase Plan from treasury stock. As of December 31, 2015, 586,967 common shares were available for future issuances under the Purchase Plan. 12. STOCK-BASED COMPENSATION (CONTINUED) Stock-based compensation expense is included in the consolidated results of operations as follows (in thousands):
Stock-based compensation cost capitalized as part of inventory was immaterial as of December 31, 2015 and September 30, 2015. The following table summarizes our stock option activity (in thousands, except per common share amounts):
(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $11.38 as of December 31, 2015, which would have been received by the option holders had all option holders exercised their options as of that date. The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. The total intrinsic value of all options exercised during the three months ended December 31, 2015 was $1.6 million and during the three months ended December 31, 2014 was minimal. The table below shows the weighted average fair value, which was determined based upon the fair value of each option on the grant date utilizing the Black-Scholes option-pricing model and the related assumptions:
The fair value of each option award granted during the periods presented was estimated using the Black-Scholes option valuation model that uses the assumptions noted in the table above. Expected volatilities are based on the historical volatility of our stock. We use historical data to estimate option exercise and employee termination information within the valuation model; separate groups of grantees that have similar historical exercise behaviors are considered separately for valuation 12. STOCK-BASED COMPENSATION (CONTINUED) purposes. The expected term of options granted is derived from the vesting period and historical information and represents the period of time that options granted are expected to be outstanding. The risk-free rate used is the zero-coupon U.S. Treasury bond rate in effect at the time of the grant whose maturity equals the expected term of the option. We use historical data to estimate pre-vesting forfeiture rates. The pre-vesting forfeiture rate used during the three months ended December 31, 2015 was 10.0%. As of December 31, 2015 the total unrecognized compensation cost related to non-vested stock options, net of expected forfeitures, was $3.5 million and the related weighted average period over which it is expected to be recognized is approximately 3.4 years. A summary of our non-vested restricted stock units as of December 31, 2015 and changes during the three months then ended is presented below (in thousands, except per common share amounts):
As of December 31, 2015, the total unrecognized compensation cost related to non-vested restricted stock units was $3.1 million and the related weighted average period over which it is expected to be recognized is approximately 1.7 years. |
Common Stock Repurchase |
3 Months Ended |
---|---|
Dec. 31, 2015 | |
Common Stock Repurchase [Abstract] | |
COMMON STOCK REPURCHASE | COMMON STOCK REPURCHASE On October 28, 2014, our Board of Directors authorized a program to repurchase up to $15.0 million of our common stock, primarily to return capital to shareholders and to support our employee stock purchase program. This repurchase authorization began on November 1, 2014 and expired on October 31, 2015. There were no shares repurchased under this program. |
Restructuring |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING | RESTRUCTURING Below is a summary of the restructuring charges and other activity within the restructuring accrual (in thousands):
Q1 2016 Restructuring On November 19, 2015, we approved a restructuring plan impacting our corporate staff. The plan most principally will close our Dortmund office and relocate certain employees to our Munich office. We also recorded a contract termination charge as we relocated our employees in our Minneapolis office to our corporate headquarters in Minnetonka in December 2015. We recorded a restructuring charge of $0.7 million that included $0.5 million of severance and $0.2 million of contract termination costs during the first quarter of fiscal 2016. This restructuring resulted in an elimination of approximately 10 positions. The payments associated with these charges are expected to be completed by the third quarter of fiscal 2016. |
Basis of Presentation of Unaudited Interim Condensed Consolidated Financial Statements and Significant Accounting Policies (Policies) |
3 Months Ended |
---|---|
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. ASU 2015-17 simplified the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as non-current in the balance sheet. The amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods and may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early adoption is permitted. We elected to early adopt ASU 2015-17 beginning this fiscal quarter ending December 31, 2015. Other than the revised balance sheet presentation of deferred tax assets and liabilities from current to non-current, the adoption of this standard did not have a material impact to our consolidated financial statements. In September 2015, FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments." To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments in this update eliminate the requirement to retrospectively account for those adjustments. The amendments in this update are effective for fiscal years beginning after December 15, 2015, including interim periods within those years, which for us will be the first fiscal quarter ending December 31, 2016. Earlier application is permitted for financial statements that have not been issued. We elected to early adopt ASU 2015-16 beginning this fiscal quarter ending December 31, 2015. The adoption of this standard did not have a material impact to our consolidated financial statements. 1. BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Not Yet Adopted In January 2016, FASB issued ASU 2016-01, “Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 will require equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income. The amendments in this update will also simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, eliminate the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet and require these entities to use the exit price notion when measuring fair value of financial instruments for disclosure purposes. This ASU would also change the presentation and disclosure requirements for financial instruments. In addition, this ASU clarifies the guidance related to valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The amendments in this Update are effective for fiscal years beinning after December 15, 2017, including interim periods within those fiscal years, which for us is the first fiscal quarter ending December 31, 2018. Early adoption is permitted for financial statements of fiscal years and interim periods that have not been issued. We are currently evaluating the impact of the adoption of ASU 2016-01. In July 2015, FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory." This provision would require inventory that was previously recorded using first-in, first-out (FIFO) to lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance is effective for fiscal years beginning after December 15, 2016 and interim periods within those years, which for us will be the first fiscal quarter ending December 31, 2017. The amendments in this guidance should be applied prospectively with earlier application permitted as of the beginning of an interim or annual period. We are currently evaluating the impact of the adoption of ASU 2015-11 and whether it would have a material impact on our consolidated financial statements. In April 2015, FASB issued ASU 2015-05, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” The new standard provides guidance to customers about whether a cloud computing arrangement includes a software license. If the arrangement does include a software license, the software license element of the arrangement should be accounted for in the same manner as the acquisition of other software licenses. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early adoption permitted. We expect to adopt this guidance beginning with our fiscal quarter ending December 31, 2016. We do not expect this guidance to have a material impact on our consolidated financial statements. In August 2014, FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern.” This guidance requires management to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. These amendments are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter, which for us, will be our annual period ended September 30, 2017. Early adoption is permitted. While we are evaluating the impact of the adoption of ASU 2014-15, we do not expect it to have an impact on our consolidated financial statements. In May 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This guidance provides a five-step analysis in determining when and how revenue is recognized so that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods and services. It also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14 "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date" which approved a one-year deferral of the effective date of ASU 2014-09. As a result of this deferral, ASU 2014-09 is effective for our fiscal 2019, including interim periods within that reporting period. The FASB also agreed to allow us to choose to adopt the standard effective for our fiscal 2018. We will adopt the guidance for our fiscal 2019 and are currently assessing the potential impact of adopting this ASU on our consolidated financial statements and related disclosures. |
Acquisition (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the values of Bluenica assets acquired and liabilities assumed as of the acquisition date. To the extent previously discussed, such amounts are considered preliminary (in thousands):
|
Discontinued Operations (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations | At September 30, 2015, the carrying amounts of major classes of assets and liabilities of discontinued operations included in the Consolidated Balance Sheet was as follows (in thousands):
(1) As of September 30, 2015, the we had a net deferred income tax asset related to the United States federal jurisdiction. That net deferred income tax asset position included a deferred income tax liability of $589 thousand related to Etherios, Inc., which was entirely in the United States federal tax jurisdiction. Below is a summary of the gain on sale subject to final working capital adjustments (in thousands):
Income (loss) from discontinued operations, after tax, as presented in the Condensed Consolidated Statements of Operations for the three months ended December 31, 2015 and 2014 is as follows (in thousands):
The following table presents amortization, depreciation and purchases of property, equipment, improvements and certain other intangible assets of the discontinued operations related to Etherios (in thousands):
|
Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table is a reconciliation of the numerators and denominators in the net income (loss) per common share calculations (in thousands, except per common share data):
|
Selected Balance Sheet Data (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Balance Sheet Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Selected Balance Sheet Data | (in thousands)
|
Marketable Securities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Marketable Securities | At December 31, 2015 our marketable securities were (in thousands):
6. MARKETABLE SECURITIES (CONTINUED) At September 30, 2015 our marketable securities were (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unrealized Losses on Available-For-Sale Securities | The following tables show the fair values and gross unrealized losses of our available-for-sale marketable securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category (in thousands):
|
Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets Measured on Recurring Basis | The following tables provide information by level for financial assets and liabilities that are measured at fair value on a recurring basis (in thousands):
|
Goodwill and Other Identifiable Intangible Assets, Net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amortizable Identifiable Intangible Assets | Amortizable identifiable intangible assets were (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Future Amortization Expense Related to Identifiable Intangible Assets | Estimated amortization expense related to identifiable intangible assets for the remainder of fiscal 2016 and the five succeeding fiscal years is (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill are (in thousands):
|
Income Taxes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands):
|
Product Warranty Obligation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Product Warranty Accrual | The following table summarizes the activity associated with the product warranty accrual (in thousands) and is included on our Condensed Consolidated Balance Sheets within current liabilities:
|
Stock-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense is included in the consolidated results of operations as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Activity | The following table summarizes our stock option activity (in thousands, except per common share amounts):
(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $11.38 as of December 31, 2015, which would have been received by the option holders had all option holders exercised their options as of that date. The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Valuation Assumptions | The table below shows the weighted average fair value, which was determined based upon the fair value of each option on the grant date utilizing the Black-Scholes option-pricing model and the related assumptions:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Restricted Stock Units | A summary of our non-vested restricted stock units as of December 31, 2015 and changes during the three months then ended is presented below (in thousands, except per common share amounts):
|
Restructuring (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve | Below is a summary of the restructuring charges and other activity within the restructuring accrual (in thousands):
|
Discontinued Operations (Income(loss) from Discontinued Operations, Net of Tax) (Details) - Etherios, Inc. - Discontinued Operations, Disposed of by Sale - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Oct. 23, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Service revenue | $ 891 | $ 1,505 | |
Cost of service | 713 | 2,140 | |
Gross profit (loss) | 178 | (635) | |
Operating expenses: | |||
Sales and marketing | 148 | 557 | |
Research and development | 103 | 479 | |
General and administrative | 43 | 413 | |
Total operating expenses | 294 | 1,449 | |
Loss from discontinued operations, before income taxes | (116) | (2,084) | |
Gain on sale of discontinued operations, before income taxes | $ 2,912 | 2,912 | 0 |
Total income (loss) from discontinued operations, before income taxes | 2,796 | (2,084) | |
Income tax benefit on discontinued operations | (523) | (727) | |
Income (loss) from discontinued operations, after income taxes | $ 3,319 | $ (1,357) |
Discontinued Operations (Assets and Liabilities of Discontinued Ops) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Sep. 30, 2015 |
||
---|---|---|---|---|
Current assets: | ||||
Total current assets | $ 0 | $ 1,624 | ||
Current liabilities: | ||||
Total current liabilities | $ 0 | 1,481 | ||
Etherios, Inc. | Discontinued Operations, Disposed of by Sale | ||||
Current assets: | ||||
Accounts receivable, net | 1,417 | |||
Deferred tax assets | 127 | |||
Other current assets | 80 | |||
Total current assets | 1,624 | |||
Property, equipment and improvements, net | 18 | |||
Identifiable intangible assets, net | 1,531 | |||
Goodwill | 1,914 | |||
Deferred tax assets | [1] | (589) | ||
Total assets of discontinued operations | 4,498 | |||
Current liabilities: | ||||
Accounts payable | 50 | |||
Accrued compensation | 1,346 | |||
Other current liabilities | 85 | |||
Total current liabilities | 1,481 | |||
Other non-current liabilities | 95 | |||
Total liabilities of discontinued operations | $ 1,576 | |||
|
Discontinued Operations (Amortization, Depreciation, and Purchase of PPE) (Details) - Etherios, Inc. - Discontinued Operations, Disposed of by Sale - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Amortization of identifiable intangible assets | $ 30 | $ 121 |
Depreciation of property, equipment and improvements | 0 | 6 |
Purchases of property, equipment, improvements and certain other intangible assets | $ 0 | $ (17) |
Selected Balance Sheet Data (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|
Accounts receivable, net: | ||
Accounts receivable | $ 25,263 | $ 28,073 |
Less allowance for doubtful accounts | 332 | 285 |
Accounts receivable, net | 24,931 | 27,788 |
Inventories: | ||
Raw materials | 23,922 | 26,037 |
Work in process | 842 | 598 |
Finished goods | 5,351 | 5,242 |
Inventories | $ 30,115 | $ 31,877 |
Marketable Securities (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2015
USD ($)
Security
|
Dec. 31, 2014
USD ($)
|
|
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities below amortized cost basis | 69 | |
Number of securities | 81 | |
Proceeds from maturities of marketable securities | $ | $ 7,106 | $ 9,321 |
Current Assets | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, next twelve months, maximum year mature | 1 year | |
Non-current Assets | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, year two through five, maximum year mature | 3 years |
Marketable Securities (Fair Value and Gross Unrealized Losses for AFS) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value of available-for-sale securities in continuous unrealized loss position for less than twelve months | $ 49,330 | $ 47,054 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (121) | (62) |
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 5,498 | 499 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (3) | (1) |
Corporate Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value of available-for-sale securities in continuous unrealized loss position for less than twelve months | 29,496 | 33,664 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (88) | (52) |
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 5,000 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1) | 0 |
Commercial Paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value of available-for-sale securities in continuous unrealized loss position for less than twelve months | 5,985 | 5,987 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (6) | (1) |
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Certificates of Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value of available-for-sale securities in continuous unrealized loss position for less than twelve months | 10,728 | 4,244 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (22) | (6) |
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 498 | 499 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (2) | (1) |
Government municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value of available-for-sale securities in continuous unrealized loss position for less than twelve months | 3,121 | 3,159 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (5) | (3) |
Fair value of available-for-sale securities in continuous unrealized loss position for twelve months or longer | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 0 | $ 0 |
Fair Value Measurements (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Sep. 30, 2015 |
||||||
---|---|---|---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale marketable securities | $ 61,726 | [1] | $ 60,817 | [2] | ||||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Total cash equivalents and marketable securities measured at fair value | 17,550 | 14,436 | ||||||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Total cash equivalents and marketable securities measured at fair value | 61,726 | 60,817 | ||||||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Total cash equivalents and marketable securities measured at fair value | 0 | 0 | ||||||
Liability | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Contingent consideration on acquired business | 0 | |||||||
Liability | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Contingent consideration on acquired business | 0 | |||||||
Liability | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Contingent consideration on acquired business | (10,400) | |||||||
Money market | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Cash equivalents | 17,550 | 14,436 | ||||||
Money market | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Cash equivalents | 0 | 0 | ||||||
Money market | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Cash equivalents | 0 | 0 | ||||||
Corporate Bonds | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale marketable securities | 0 | 0 | ||||||
Corporate Bonds | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale marketable securities | 36,807 | 35,840 | ||||||
Corporate Bonds | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale marketable securities | 0 | 0 | ||||||
Commercial Paper | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale marketable securities | 0 | 0 | ||||||
Commercial Paper | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale marketable securities | 7,984 | 7,985 | ||||||
Commercial Paper | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale marketable securities | 0 | 0 | ||||||
Certificates of Deposit | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale marketable securities | 0 | 0 | ||||||
Certificates of Deposit | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale marketable securities | 13,760 | 13,768 | ||||||
Certificates of Deposit | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale marketable securities | 0 | 0 | ||||||
Government municipal bonds | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale marketable securities | 0 | 0 | ||||||
Government municipal bonds | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale marketable securities | 3,175 | 3,224 | ||||||
Government municipal bonds | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale marketable securities | 0 | 0 | ||||||
Estimate of Fair Value Measurement | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Total cash equivalents and marketable securities measured at fair value | 79,276 | 75,253 | ||||||
Estimate of Fair Value Measurement | Liability | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Contingent consideration on acquired business | (10,400) | |||||||
Estimate of Fair Value Measurement | Money market | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Cash equivalents | 17,550 | 14,436 | ||||||
Estimate of Fair Value Measurement | Corporate Bonds | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale marketable securities | 36,807 | 35,840 | ||||||
Estimate of Fair Value Measurement | Commercial Paper | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale marketable securities | 7,984 | 7,985 | ||||||
Estimate of Fair Value Measurement | Certificates of Deposit | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale marketable securities | 13,760 | 13,768 | ||||||
Estimate of Fair Value Measurement | Government municipal bonds | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Available-for-sale marketable securities | $ 3,175 | $ 3,224 | ||||||
|
Goodwill and Other Identifiable Intangible Assets, Net (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 76,526 | $ 73,934 |
Accumulated amortization | (71,465) | (71,286) |
Net | 5,061 | 2,648 |
Purchased and Core Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 47,190 | 45,449 |
Accumulated amortization | (45,345) | (45,424) |
Net | 1,845 | 25 |
License Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 18 | 18 |
Accumulated amortization | (4) | (4) |
Net | 14 | 14 |
Patents and Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 11,491 | 11,377 |
Accumulated amortization | (10,550) | (10,385) |
Net | 941 | 992 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 17,827 | 17,090 |
Accumulated amortization | (15,566) | (15,473) |
Net | $ 2,261 | $ 1,617 |
Goodwill and Other Identifiable Intangible Assets, Net (Amortization Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 468 | $ 770 |
2016 nine months | 1,160 | |
2017 | 963 | |
2018 | 574 | |
2019 | 449 | |
2020 | 215 | |
2021 | 69 | |
Cost of Sales and General and Administrative Expense | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 400 | $ 600 |
Goodwill and Other Identifiable Intangible Assets, Net (Goodwill Rollforward) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Goodwill [Roll Forward] | ||
Beginning balance | $ 100,183 | $ 101,484 |
Acquisition of Bluenica Corporation | 11,020 | 0 |
Foreign currency translation adjustment | (959) | (724) |
Ending balance | $ 110,244 | $ 100,760 |
Goodwill and Other Identifiable Intangible Assets, Net (Additional Information) (Details) $ in Thousands |
Jun. 30, 2014
industry
|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2015
USD ($)
|
Jun. 30, 2015
USD ($)
|
---|---|---|---|---|
Goodwill [Line Items] | ||||
Market capitalization | $ 238,600 | |||
Carrying value | $ 285,516 | $ 274,938 | $ 270,600 | |
Control premium percent | 35.00% | |||
Percent fair value in excess of carrying value of goodwill | 19.00% | |||
Target companies equity benchmark | 50.00% | |||
Number of industries encompasses similar products | industry | 3 | |||
Minimum | ||||
Goodwill [Line Items] | ||||
Control premium percent | 30.00% | |||
Maximum | ||||
Goodwill [Line Items] | ||||
Control premium percent | 40.00% |
Income Taxes (Unrecognized Tax Benefits) (Details) $ in Thousands |
3 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Unrecognized tax benefits, beginning balance | $ 1,618 |
Increases related to Prior year income tax positions | 60 |
Decreases related to Expiration of statute of limitations | (121) |
Unrecognized tax benefits, ending balance | $ 1,557 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | ||
Income tax provision (benefit) | $ 381 | $ (128) |
Income tax expense (benefit) specific to the period | (700) | $ (500) |
Unrecognized tax benefits that would impact effective tax rate | $ 1,300 |
Product Warranty Obligation (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Product Warranties Disclosures [Abstract] | ||
Warranty period, minimum | 1 year | |
Warranty period, maximum | 5 years | |
Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 1,014 | $ 862 |
Warranties issued | 120 | 291 |
Settlements made | (166) | (203) |
Ending balance | $ 968 | $ 950 |
Contingencies Patent infringement (Details) |
3 Months Ended |
---|---|
Dec. 31, 2015 | |
Patent Infringement | |
Loss Contingencies [Line Items] | |
Number of patents allegedly infringed | 4 |
Stock-Based Compensation (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Jan. 27, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Paid for Tax Withholding for Share Based Compensation | 32,903 | ||
Tax withholding for share-based compensation | $ 400 | ||
Proceeds from stock option plan transactions | 5,752 | $ 9 | |
Excess Tax Benefit from Share-based Compensation, Financing Activities | (190) | 0 | |
Total intrinsic value of all options exercised | $ 1,600 | ||
Forfeiture rate | 10.00% | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost nonvested awards | $ 3,500 | ||
Weighted average period, unrecognized compensation cost, nonvested awards | 3 years 4 months 24 days | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost nonvested restricted stock units | $ 3,100 | ||
Weighted average period, unrecognized compensation cost, nonvested awards | 1 year 8 months 12 days | ||
The 2014 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 2,250,000 | ||
Number of shares available for future grants | 1,286,089 | ||
The 2014 Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Expiration period | 8 years | ||
The Purchase Plan | The Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of continuous days of service | 90 days | ||
Number of hours per week employed | 20 hours | ||
Percent of market value | 85.00% | ||
Offering period | 3 months | ||
Employee contributions | $ 300 | $ 261 | |
Common shares issued to employees | 30,564 | 40,950 | |
Shares available for future issuance | 586,967 | ||
Director | The 2014 Plan | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Executives and Employees | The 2014 Plan | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years |
Stock-Based Compensation (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation before income taxes | $ 811 | $ 1,082 |
Income tax benefit | (257) | (422) |
Stock-based compensation after income taxes | 554 | 660 |
Cost of Sales | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation before income taxes | 54 | 65 |
Sales and Marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation before income taxes | 199 | 338 |
Research and Development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation before income taxes | 148 | 154 |
General and Administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation before income taxes | $ 410 | $ 525 |
Stock-Based Compensation (Options and Common Shares Reserved for Grant) (Details) - Stock Options $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015
USD ($)
$ / shares
shares
| ||||
Options Outstanding [Roll Forward] | ||||
Options Outstanding, Beginning Balance (in shares) | shares | 4,800 | |||
Options Outstanding, Granted (in shares) | shares | 348 | |||
Options Outstanding, Exercised (in shares) | shares | (611) | |||
Options Outstanding, Forfeited / Canceled (in shares) | shares | (426) | |||
Options Outstanding, Ending Balance (in shares) | shares | 4,111 | |||
Options Outstanding, Exercisable (in shares) | shares | 2,935 | |||
Weighted Average Exercise Price [Roll Forward] | ||||
Weighted Average Exercise Price, Beginning Balance | $ 10.21 | |||
Weighted Average Exercise Price, Granted | 12.63 | |||
Weighted Average Exercise Price, Exercised | 9.83 | |||
Weighted Average Exercise Price, Forfeited / Canceled | 11.52 | |||
Weighted Average Exercise Price, Ending Balance | 10.34 | |||
Weighted Average Exercise Price, Exercisable | $ 10.49 | |||
Weighted Average Remaining Contractual Term [Abstract] | ||||
Weighted Average Remaining Contractual Term, Outstanding | 4 years 10 months 24 days | |||
Weighted Average Remaining Contractual Term, Exercisable | 4 years | |||
Aggregate Intrinsic Value [Abstract] | ||||
Aggregate Intrinsic Value, Outstanding | $ | $ 6,304 | [1] | ||
Aggregate Intrinsic Value, Exercisable | $ | $ 4,223 | [1] | ||
Closing Stock Price | $ 11.38 | |||
|
Stock-Based Compensation (Fair Value Assumptions) (Details) - Stock Options - $ / shares |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average per option grant date fair value | $ 4.30 | $ 2.91 |
Assumptions Used For Options Grants [Abstract] | ||
Risk free interest rate, minimum | 1.85% | 1.77% |
Risk free interest rate, maximum | 1.85% | |
Expected term | 6 years | 6 years |
Expected volatility rate, minimum | 32.00% | 35.00% |
Expected volatility rate, maximum | 36.00% | |
Weighted average volatility | 32.00% | 35.00% |
Expected dividend yield | 0.00% | 0.00% |
Stock-Based Compensation (Non-Vested Options) (Details) - Restricted Stock Units shares in Thousands |
3 Months Ended |
---|---|
Dec. 31, 2015
$ / shares
shares
| |
Nonvested Number of Restricted Stock Units [Roll Forward] | |
Number of Restricted Stock Units, Beginning Balance | shares | 543 |
Number of Restricted Stock Units, Granted | shares | 121 |
Number of Restricted Stock Units, Vested | shares | (104) |
Number of Restricted Stock Units, Canceled | shares | (91) |
Number of Restricted Stock Units, Ending Balance | shares | 469 |
Nonvested Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share [Roll Forward] | |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Beginning Balance | $ / shares | $ 8.41 |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Granted | $ / shares | 12.63 |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested | $ / shares | 7.79 |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Canceled | $ / shares | 8.11 |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance | $ / shares | $ 9.69 |
Common Stock Repurchase (Details) $ in Millions |
Oct. 28, 2014
USD ($)
|
---|---|
October 2014 Repurchase Program [Member] | |
Stock repurchase program, authorized amount | $ 15.0 |
Restructuring (Details) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2015
USD ($)
employee
|
Dec. 31, 2014
USD ($)
|
Sep. 30, 2015
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | $ 651 | $ 0 | |
Q1 2016 Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | 651 | ||
Restructuring Reserve | $ 651 | $ 0 | |
Number of employees eliminated | employee | 10 | ||
Employee Termination Costs | Q1 2016 Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | $ 480 | ||
Restructuring Reserve | 480 | 0 | |
Other | Q1 2016 Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | 171 | ||
Restructuring Reserve | $ 171 | $ 0 |