Equity (Tables)

9 Months Ended

Jun. 30, 2014

Equity [Abstract]

Schedule of Stock Options Activity

The following table summarizes stock option activity under the Equity Plans for the nine months ended June 30, 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	35,825		$4.74
Exercised	(7,100	)	$4.59		$	4
Forfeited	(41,731	)	$4.67
Expired	(163,792	)	$17.12
Outstanding as of June 30, 2014	1,569,150		$17.96	3.68
Exercisable as of June 30, 2014	1,409,046		$19.44	3.19	$	32
Vested and expected to vest as of June 30, 2014	1,544,771		$18.17	3.60	$	50

(*) 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 nine months ended June 30, 2013, the intrinsic value of options exercised was $93,000.

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 June 30,					For the Nine Months Ended June 30,
	2014		2013			2014			2013
Black-Scholes weighted average assumptions:
Expected dividend rate	—	%	—		%	—		%	—		%
Expected stock price volatility rate	92.0	%	96.7		%	93.2		%	96.8		%
Risk-free interest rate	1.9	%	1.3		%	1.9		%	1.1		%
Expected term (in years)	6.0		6.0			6.0			6.0
Weighted average grant date fair value per share of stock options granted:	$3.21		$	2.98		$	3.61		$	3.45

Schedule of Restricted Stock Activity

The following table summarizes the activity related to RSAs and RSUs for the nine months ended June 30, 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	—		$0.00	660,500		$4.89
Vested	(97,098	)	$5.85	(350,161	)	$4.37
Forfeited	(2,463	)	$5.68	(99,846	)	$4.48
Non-vested as of June 30, 2014	—		$0.00	1,065,421		$4.80

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 June 30,				For the Nine Months Ended June 30,
(in thousands)	2014		2013		2014		2013
Employee stock options	$	28	$	163	$	138	$	544
Restricted stock awards and units	640		547		1,936		1,468
Employee stock purchase plan	98		124		326		380
401(k) match in common stock	323		267		733		780
Outside director fees in common stock	91		51		286		113
Total stock-based compensation expense	$	1,180	$	1,152	$	3,419	$	3,285

Schedule Stock-based Compensation Expense - By Expense Type

Stock-based Compensation Expense - by expense type	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
(in thousands)	2014		2013		2014		2013
Cost of revenue	$	254	$	311	$	685	$	916
Selling, general, and administrative	607		485		1,827		1,326
Research and development	319		356		907		1,043
Total stock-based compensation expense	$	1,180	$	1,152	$	3,419	$	3,285

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 June 30,						For the Nine Months Ended June 30,
(in thousands, except per share)	2014			2013			2014			2013
Numerator - Net (loss) income	$	(3,150	)	$	(7,283	)	$	(10,636	)	$	7,240
Less: Undistributed earnings allocated to participating securities	—			—			—			(42		)
Undistributed earnings allocated to common shareholders for basic net (loss) income per share	$	(3,150	)	$	(7,283	)	$	(10,636	)	$	7,198
Undistributed earnings allocated to common shareholders for diluted net (loss) income per share	$	(3,150	)	$	(7,283	)	$	(10,636	)	$	7,198
Denominator:
Denominator for basic net (loss) income per share - weighted average shares outstanding	30,656			26,609			30,327			26,320
Dilutive options outstanding, unvested stock units and ESPP	—			—			—			300
Denominator for diluted net (loss) income per share - adjusted weighted average shares outstanding	30,656			26,609			30,327			26,620
Basic net (loss) income per share	$	(0.10	)	$	(0.27	)	$	(0.35	)	$	0.27
Diluted net (loss) income per share	$	(0.10	)	$	(0.27	)	$	(0.35	)	$	0.27
Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation	3,091			2,873			2,990			2,467
Average market price of common stock	$	4.39		$	4.11		$	4.80		$	4.81

Schedule of Common Stock Reserved for Future Issuances

As of June 30, 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	1,569,150
Unvested restricted stock units	1,065,421
Purchases under the employee stock purchase plan	1,245,506
Issuance of stock-based awards under the Equity Plans	1,064,473
Exercise of outstanding warrants	400,001
Purchases under the officer and director share purchase plan	88,741
Total reserved	5,433,292