STOCK BASED COMPENSATION (Tables)

6 Months Ended

Mar. 31, 2014

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

Compensation costs related to the stock-based compensation plans

Compensation cost related to our Plan and ESPP is as follows:

	Three Months Ended March 31,				Six Months Ended March 31,
	2014		2013		2014		2013
	(in thousands)
Cost of revenues	$	225	$	144	$	409	$	298
Engineering, research and development	585		379		1,070		765
Selling, general and administrative	805		483		1,401		1,086
Total stock-based compensation expense	$	1,615	$	1,006	$	2,880	$	2,149

Activity under all stock option plans

Activity in stock option awards is as follows:

	Shares   (in thousands)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life  (years)	Aggregate Intrinsic Value (in thousands)
Options outstanding, September 30, 2013	2,089		$	13.43	6.67	$	591
Granted	1,014		2.53
Exercised	(21	)	2.29
Cancelled or expired	(68	)	108.50
Options outstanding, March 31, 2014	3,014		7.67		7.47	3,214
Options exercisable, March 31, 2014	1,687		$	11.66	6.09	$	1,062

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

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

	Six Months Ended March 31,
	2014	2013
Expected life (in years)	5.79	5.63
Expected volatility:
Weighted-average	81.5%	82.1%
Range	79.5% - 81.6%	80.5% - 82.1%
Expected dividend	—	—
Risk-free interest rate	1.7% - 1.9%	.9% - 1.0%

We determine the fair value of the ESPP awards using the Black-Scholes pricing model. Underlying assumptions used were as follows:

	Six Months Ended March 31,
	2014	2013
Expected life (in years)	0.5	0.5
Expected volatility	37.1% - 50.3%	47.6% - 49.8%
Expected dividend	—	—
Risk-free interest rate	0.07% - 0.08%	0.11% - 0.14%

Schedule of Shares Authorized under Stock Option Plans by Exercise Price Range

The following table provides additional information in regards to options outstanding as of March 31, 2014:

	Options Outstanding				Options Exercisable
Range of Exercise Price	Number Outstanding (in thousands)	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price		Number Exercisable (in thousands)	Weighted Average Exercise Price
$2.10 - $2.26	439	8.92	$	2.11	199	$	2.10
2.53	995	9.70	2.53		124	2.53
2.54 - 4.36	766	7.26	3.45		557	3.49
4.60 - 47.20	604	5.27	8.10		597	8.12
48.00 - 145.40	210	0.90	57.79		210	57.79
$2.10 - $145.40	3,014	7.47	$	7.67	1,687	$	11.66

Summary of restricted stock unit activity

Activity for our restricted stock award units is as follows:

	Restricted Stock Units (in thousands)		Weighted Average Grant-Date Fair Value per Share		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value (in thousands)
Restricted stock units, September 30, 2013	2,021		$	2.65	1.13	$	6,143
Awarded	1,569		2.61
Released	(1,161	)	2.70
Forfeited	(36	)	2.41
Restricted stock units, March 31, 2014	2,393		$	2.61	1.44	$	10,053