STOCK BASED COMPENSATION (Tables)

12 Months Ended

Sep. 30, 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:

	September 30,
	2014		2013		2012
	(in thousands)
Cost of revenues	$	823	$	617	$	567
Engineering, research and development	2,248		1,616		1,530
Selling, general and administrative	3,004		2,163		2,345
Total stock-based compensation expense	$	6,075	$	4,396	$	4,442

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  (in years)	Aggregate intrinsic value (in thousands)
Options outstanding, September 30, 2011	1,699		$	29.77	6.37	$	—
Granted	401		2.55
Exercised	(6	)	2.54			3
Cancelled or expired	(281	)	76.87
Options outstanding, September 30, 2012	1,813		16.57		6.61	2
Granted	464		2.12
Exercised	(9	)	2.24			6
Cancelled or expired	(179	)	16.52
Options outstanding, September 30, 2013	2,089		13.43		6.67	591
Granted	1,014		2.53
Exercised	(52	)	2.36			64
Cancelled or expired	(111	)	76.55
Options outstanding, September 30, 2014	2,940		$	7.46	7.00	$	2,059
Options exercisable, September 30, 2014	1,633		$	11.36	5.63	$	668

Schedule of stock option by exercise price range

The following table provides additional information in regards to options outstanding as of September 30, 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	424	8.43	$	2.11	194	$	2.10
2.53	987	9.19	2.53		116	2.53
2.54 - 4.36	743	6.74	3.45		542	3.49
4.60 - 47.20	589	4.83	7.84		583	7.87
48.00 - 145.40	197	0.43	57.56		198	57.56
$2.10 - $145.40	2,940	7.00	$	7.46	1,633	$	11.36

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, 2011	1,296		$	4.66	1.38	$	3,823
Awarded	1,258		2.57
Released	(721	)	3.99
Forfeited	(147	)	3.48
Restricted stock units, September 30, 2012	1,686		3.49		1.09	4,113
Awarded	1,527		2.12
Released	(1,045	)	3.19
Forfeited	(147	)	2.88
Restricted stock units, September 30, 2013	2,021		2.65		1.13	6,143
Awarded	1,600		2.62
Released	(1,183	)	2.69
Forfeited	(110	)	2.60
Restricted stock units, September 30, 2014	2,328		$	2.61	0.96	$	8,380

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

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

	September 30,
	2014	2013	2012
Expected life (in years)	0.5	0.5	0.5
Expected volatility (range)	37.1% - 50.3%	47.6% - 49.8%	40.4% - 48.4%
Expected dividend	—	—	—
Risk-free interest rate	0.07% - .08%	0.11% - .14%	0.09% - .20%

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

	September 30,
	2014	2013	2012
Expected life (in years)	5.79	5.66	6.61
Expected volatility:
Weighted-average	81.5%	82.0%	86.9%
Range	79.5% - 81.6%	79.8% - 82.1%	82.2% - 87.1%
Expected dividend	—	—	—
Risk-free interest rate	1.7% - 1.9%	0.9% - 1.7%	1.0% - 1.3%