STOCK BASED COMPENSATION (Tables)

9 Months Ended

Jun. 30, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Compensation costs related to the stock-based compensation plans

Compensation cost related to our stock-based compensation plan is as follows:

	Three Months Ended June 30,				Nine Months Ended June 30,
	2012		2011		2012		2011
	(in thousands)
Cost of revenues	$	147	$	123	$	415	$	353
Engineering, research and development	387		288		1,151		758
Selling, general and administrative	558		515		1,735		1,423
Total stock-based compensation expense	$	1,092	$	926	$	3,301	$	2,534

Activity under all stock option plans

Activity in stock option awards is as follows:

	Shares		Weighted average exercise price		Weighted average remaining contractual life (in years)	Aggregate intrinsic value
Options outstanding, September 30, 2011	1,699,183		$	29.77	6.37	$	—
Granted	389,182		2.55		—	—
Exercised	(6,047	)	2.54		—	—
Cancelled or expired	(273,770	)	78.25		—	—
Options outstanding, June 30, 2012	1,808,548		16.67		6.84	38,316
Options exercisable, June 30, 2012	992,566		$	27.13	5.37	$	8,884

Summary of assumptions used to value stock options granted in connection with stock incentive plans

The per share fair values of stock options granted in connection with stock incentive plans have been estimated using the following weighted average assumptions:

	Nine Months Ended June 30,
	2012	2011
Expected life (in years)	5.64	6.24
Expected volatility:
Weighted-average	87.0%	85.8%
Range	85.5% - 87.1%	85.7% - 86.5%
Expected dividend	—	—
Risk-free interest rate	1.05% - 1.27%	2.23% - 2.78%

Summary of restricted stock unit activity

Activity for our restricted stock award units is as follows:

	Restricted Stock Units		Weighted Average Grant-Date Fair Value per Share		Weighted average remaining contractual life (in years)	Aggregate intrinsic value
Restricted stock units, September 30, 2011	1,295,979		$	4.67
Awarded	1,258,075		2.57
Released	(708,953	)	3.99
Forfeited	(143,080	)	3.44
Restricted stock units, June 30, 2012	1,702,021		$	3.50	1.33	$	4,510,356