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Equity (Tables)
6 Months Ended
Mar. 31, 2013
Equity [Abstract]  
Schedule of Stock Options Activity
The following table summarizes stock option activity under the Equity Plans for the six months ended March 31, 2013:


Number of Shares
 
Weighted Average Exercise Price
 
Weighted Average
Remaining Contractual Life
(in years)
 
Aggregate Intrinsic Value (*) (in thousands)
Outstanding as of September 30, 2012
2,032,215

 
$17.76
 
 
 
 
Granted
35,400

 
$5.11
 
 
 
 
Exercised
(76,179
)
 
$4.94
 
 
 
$
92

Forfeited
(44,088
)
 
$7.66
 
 
 
 
Expired
(178,515
)
 
$20.48
 
 
 
 
Outstanding as of March 31, 2013
1,768,833

 
$18.04
 
4.80
 
 
Exercisable as of March 31, 2013
1,456,747

 
$20.73
 
4.19
 
$
365

Vested and expected to vest as of March 31, 2013
1,731,105

 
$18.32
 
4.72
 
$
634


(*) Intrinsic value for stock options represents the “in-the-money” portion or the positive variance between a stock option's exercise price and the underlying stock price.

Schedule of Valuation Assumptions
The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option valuation model, adhering to the straight-line attribution approach using the following weighted-average assumptions, of which the expected term and stock price volatility rate are highly subjective:

 
For the Three Months Ended March 31,
 
For the Six Months Ended March 31,
 
2013
 
2012
 
2013
 
2012
Black-Scholes weighted average assumptions:
 
 
 
 
 
 
 
Expected dividend rate
%
 
%
 
%
 
%
Expected stock price volatility rate
96.5
%
 
103.9
%
 
96.9
%
 
105.2
%
Risk-free interest rate 
1.1
%
 
1.0
%
 
1.0
%
 
0.9
%
Expected term (in years)
6.0

 
5.0

 
6.0

 
5.0

 
 
 
 
 
 
 
 
Weighted average grant date fair value per share of stock options granted:
$4.28
 
$
3.46

 
$
3.94

 
$
3.23

Schedule of Restricted Stock Activity
The following table summarizes the activity related to RSAs and RSUs for the six months ended March 31, 2013:

Restricted Stock Activity
Restricted Stock Awards
 
Restricted Stock Units
 
Number of Shares
 
Weighted Average Grant Date Fair Value
 
Number of Shares
 
Weighted Average Grant Date Fair Value
Non-vested as of September 30, 2012
216,703

 
$5.83
 
700,043

 
$4.44
Granted

 
 
480,800

 
$4.72
Vested
(102,630
)
 
$5.68
 
(174,175
)
 
$3.87
Forfeited
(4,063
)
 
$5.68
 
(25,720
)
 
$4.47
Non-vested as of March 31, 2013
110,010

 
$5.98
 
980,948

 
$4.68
Schedule of Stock-based Compensation Expense - By Award Type
The effect of recording stock-based compensation expense was as follows:

Stock-based Compensation Expense - by award type
For the Three Months Ended March 31,
 
For the Six Months Ended March 31,
(in thousands)
2013
 
2012
 
2013
 
2012
Employee stock options
$
123

 
$
1,088

 
$
381

 
$
2,135

Restricted stock awards and units
515

 
946

 
921

 
1,521

Employee stock purchase plan
125

 
189

 
256

 
413

401(k) match in common stock
257

 
245

 
513

 
475

Outside director fees in common stock
31

 
74

 
62

 
178

Total stock-based compensation expense
$
1,051

 
$
2,542

 
$
2,133

 
$
4,722

Schedule Stock-based Compensation Expense - By Expense Type
Stock-based Compensation Expense - by expense type
For the Three Months Ended March 31,
 
For the Six Months Ended March 31,
(in thousands)
2013
 
2012
 
2013
 
2012
Cost of revenue
$
290

 
$
593

 
$
605

 
$
1,069

Selling, general, and administrative
459

 
1,233

 
841

 
2,246

Research and development
302

 
716

 
687

 
1,407

Total stock-based compensation expense
$
1,051

 
$
2,542

 
$
2,133

 
$
4,722

Schedule of Earnings Per Share, Basic and Diluted
Income (Loss) Per Share.
The following table sets forth the computation of basic and diluted net income (loss) per share:

Basic and Diluted Net Income (Loss) Per Share
For the Three Months Ended March 31,
 
For the Six Months Ended March 31,
(in thousands, except per share)
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
Numerator - Net income (loss)
$
11,697

 
$
(9,335
)
 
$
14,523

 
$
(23,564
)
Less: Undistributed earnings allocated to participating securities
(94
)
 

 
(118
)
 

Undistributed earnings allocated to common shareholders for basic net income (loss) per share
$
11,603

 
$
(9,335
)
 
$
14,405

 
$
(23,564
)
Undistributed earnings allocated to common shareholders for diluted net income (loss) per share
$
11,603

 
$
(9,335
)
 
$
14,405

 
$
(23,564
)
Denominator:
 
 
 
 
 
 
 
Denominator for basic net income (loss) per share - weighted average shares outstanding
26,310

 
23,529

 
26,142

 
23,577

Dilutive options outstanding, unvested stock units and ESPP
332

 

 
290

 

Denominator for diluted net income (loss) per share - adjusted weighted average shares outstanding
26,642

 
23,529

 
26,432

 
23,577

Basic net income (loss) per share
$
0.44

 
$
(0.40
)
 
$
0.55

 
$
(1.00
)
Diluted net income (loss) per share
$
0.44

 
$
(0.40
)
 
$
0.54

 
$
(1.00
)
Weighted average antidilutive options, unvested restricted stock units and warrants excluded from the computation
1,869

 
3,587

 
2,265

 
3,384

Average market price of common stock
$
5.66

 
$
4.72

 
$
5.16

 
$
4.31

Schedule of Common Stock Reserved for Future Issuances
As of March 31, 2013, we had common stock reserved for the following future issuances:

Future Issuances
Number of Common Stock Shares Available for Future Issuances
Exercise of outstanding stock options
1,768,833

Unvested restricted stock units
980,948

Purchases under the employee stock purchase plan
636,001

Issuance of stock-based awards under the Equity Plans
588,650

Exercise of outstanding warrants
400,001

Purchases under the officer and director share purchase plan
94,811

Total reserved
4,469,244