Equity (Tables)

6 Months Ended

Mar. 31, 2014

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, 2014:

	Number of Shares		Weighted Average Exercise Price	Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value (*) (in thousands)
Outstanding as of September 30, 2013	1,745,948		$17.78
Granted	24,575		$4.97
Exercised	(6,100	)	$4.52		$	4
Forfeited	(30,805	)	$4.55
Expired	(59,230	)	$20.81
Outstanding as of March 31, 2014	1,674,388		$17.77	3.74
Exercisable as of March 31, 2014	1,504,207		$19.23	3.24	$	120
Vested and expected to vest as of March 31, 2014	1,647,359		$17.99	3.66	$	209

(*) 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. For the six months ended March 31, 2013, the intrinsic value of options exercised was $92,000.

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,
	2014		2013			2014			2013
Black-Scholes weighted average assumptions:
Expected dividend rate	—	%	—		%	—		%	—		%
Expected stock price volatility rate	93.4	%	96.5		%	93.8		%	96.9		%
Risk-free interest rate	1.9	%	1.1		%	1.9		%	1.0		%
Expected term (in years)	6.0		6.0			6.0			6.0
Weighted average grant date fair value per share of stock options granted:	$3.76		$	4.28		$	3.79		$	3.94

Schedule of Restricted Stock Activity

The following table summarizes the activity related to RSAs and RSUs for the six months ended March 31, 2014:

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, 2013	99,561		$5.84	854,928		$4.51
Granted	—		—	656,750		$4.89
Vested	(92,932	)	$5.68	(326,657	)	$4.35
Forfeited	(2,463	)	$5.68	(71,974	)	$4.41
Non-vested as of March 31, 2014	4,166		$9.64	1,113,047		$4.79

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)	2014		2013		2014		2013
Employee stock options	$	43	$	123	$	110	$	381
Restricted stock awards and units	618		515		1,296		921
Employee stock purchase plan	108		125		228		256
401(k) match in common stock	250		257		410		513
Outside director fees in common stock	85		31		195		62
Total stock-based compensation expense	$	1,104	$	1,051	$	2,239	$	2,133

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)	2014		2013		2014		2013
Cost of revenue	$	214	$	290	$	431	$	605
Selling, general, and administrative	579		459		1,220		841
Research and development	311		302		588		687
Total stock-based compensation expense	$	1,104	$	1,051	$	2,239	$	2,133

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 (Loss) Income Per Share	For the Three Months Ended March 31,						For the Six Months Ended March 31,
(in thousands, except per share)	2014			2013			2014			2013
Numerator - Net (loss) income	$	(5,432	)	$	11,697		$	(7,486	)	$	14,523
Less: Undistributed earnings allocated to participating securities	—			(94		)	—			(118		)
Undistributed earnings allocated to common shareholders for basic net (loss) income per share	$	(5,432	)	$	11,603		$	(7,486	)	$	14,405
Undistributed earnings allocated to common shareholders for diluted net (loss) income per share	$	(5,432	)	$	11,603		$	(7,486	)	$	14,405
Denominator:
Denominator for basic net (loss) income per share - weighted average shares outstanding	30,392			26,310			30,162			26,142
Dilutive options outstanding, unvested stock units and ESPP	—			332			—			290
Denominator for diluted net (loss) income per share - adjusted weighted average shares outstanding	30,392			26,642			30,162			26,432
Basic net (loss) income per share	$	(0.18	)	$	0.44		$	(0.25	)	$	0.55
Diluted net (loss) income per share	$	(0.18	)	$	0.44		$	(0.25	)	$	0.54
Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation	3,028			1,869			2,653			2,265
Average market price of common stock	$	4.96		$	5.66		$	5.00		$	5.16

Schedule of Common Stock Reserved for Future Issuances

As of March 31, 2014, 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	1,674,388
Unvested restricted stock units	1,113,047
Purchases under the employee stock purchase plan	1,245,506
Issuance of stock-based awards under the Equity Plans	1,037,540
Exercise of outstanding warrants	400,001
Purchases under the officer and director share purchase plan	88,741
Total reserved	5,559,223