Stock-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Expense

Stock-based compensation expense is included in the consolidated results of operations as (in thousands):

	Fiscal year ended September 30,
	2020		2019		2018
Cost of sales	$	291	$	174	$	195
Sales and marketing	2,318		1,708		1,492
Research and development	1,197		996		516
General and administrative	3,431		2,777		2,651
Stock-based compensation before income taxes	7,237		5,655		4,854
Income tax benefit	(1,523)		(1,174)		(1,017)
Stock-based compensation after income taxes	$	5,714	$	4,481	$	3,837

Schedule of Stock Option Activity

Below is a summary of our stock options as of September 30, 2020 and changes during the twelve months then ended (in thousands, except per common share amounts):

	Options Outstanding	Weighted Average Exercised Price	Weighted Average Contractual Term (in years)	Aggregate Intrinsic Value (1)
Balance at September 30, 2019	3,348	$10.85
Granted	796	16.56
Exercised	(583)	10.12
Forfeited / Canceled	(168)	13.16
Balance at September 30, 2020	3,393	$12.20	3.9	$	12,790
Exercisable at September 30, 2020	2,115	$10.80	2.9	$	10,207

(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $15.63 as of September 30, 2020, which would have been received by the option holders had all option holders exercised their options as of that date.

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:

	Fiscal year ended September 30,
	2020		2019		2018
Weighted average per option grant date fair value	$	6.17	$	4.48	$	3.98
Assumptions used for option grants:
Risk free interest rate	0.37% - 1.73%		1.60% - 2.93%		2.12% - 2.89%
Expected term	6.00 years		6.00 years		6.00 years
Expected volatility	36% - 44%		33% - 35%		33% - 34%
Weighted average volatility	36%		34%		33%
Expected dividend yield	0%		0%		0%

Schedule of Weighted Average Exercise Price Range and Remaining Contractual Life

As of September 30, 2020, the weighted average exercise price and remaining life of the stock options were (in thousands, except remaining life and exercise price):

Options Outstanding					Options Exercisable
Range of Exercise Prices	Options Outstanding	Weighted Average Remaining Contractual Life (In Years)	Weighted Average Exercise Price		Number of Shares Vested	Weighted Average Exercise Price
$7.40 - $9.03	485	2.33	$	8.22	485	$	8.22
$9.04 - $10.33	542	3.61	$	10.04	427	$	9.98
$10.35 - $11.23	602	3.42	$	10.94	405	$	10.86
$11.24 - $12.63	620	3.79	$	12.08	448	$	12.17
$12.64 - $13.92	573	4.48	$	13.65	339	$	13.53
$13.93 - $17.94	536	6.05	$	17.62	11	$	14.75
$17.95 - $18.20	35	6.14	$	18.20	—	$	—
$7.40 - $18.20	3,393	3.98	$	12.20	2,115	$	10.80

Schedule of Nonvested Restricted Stock Units

Below is a summary of our non-vested restricted stock units as of September 30, 2020 and changes during the twelve months then ended (in thousands, except per common share amounts):

	Number of Awards	Weighted Average Grant Date Fair Value
Nonvested at September 30, 2019	888	$	11.65
Granted	516	$	14.86
Vested	(322)	$	11.78
Canceled	(110)	$	12.53
Nonvested at September 30, 2020	972	$	13.20