Equity (Tables)

12 Months Ended

Sep. 30, 2015

The following table summarizes stock option activity under the Equity Plans for the fiscal year ended September 30, 2015:



	Number of Shares		Weighted Average Exercise Price	Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value (*) (in thousands)
Outstanding as of September 30, 2014	1,431,190		$19.06
Granted	37,350		$6.23
Exercised	(289,467	)	$4.82		$	305
Forfeited	(9,227	)	$5.28
Expired	(473,387	)	$22.01
Outstanding as of September 30, 2015	696,459		$22.47	2.91	$	436
Exercisable as of September 30, 2015	651,732		$23.60	2.48	$	395
Vested and expected to vest as of September 30, 2015	687,048		$22.70	2.82	$	428

(*) 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 fiscal year ended September 30, 2014 and 2013, the intrinsic value of options exercised was $100,000 and $94,000.

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 Fiscal Years Ended September 30,
	2015			2014			2013
Black-Scholes weighted average assumptions:
Expected dividend rate	—		%	—		%	—		%
Expected stock price volatility rate	66.1		%	92.8		%	96.7		%
Risk-free interest rate	1.8		%	1.9		%	1.2		%
Expected term (in years)	6.0			6.0			6.0

Weighted average grant date fair value per share of stock options granted:	$	3.73		$	3.53		$	3.45

Schedule of Restricted Stock Activity

The following table summarizes the activity related to RSUs for the fiscal year ended September 30, 2015:



Restricted Stock Activity	Restricted Stock Units
	Number of Shares		Weighted Average Grant Date Fair Value
Non-vested as of September 30, 2014	966,579		$4.71
Granted	524,150		$5.38
Vested	(873,183	)	$4.74
Forfeited	(47,315	)	$4.89
Non-vested as of September 30, 2015	570,231		$5.26

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 Fiscal Years Ended September 30,
(in thousands)	2015		2014		2013
Employee stock options	$	194	$	135	$	293
Restricted stock awards and units	2,658		1,683		1,343
Employee stock purchase plan	143		289		329
401(k) match in common stock	284		513		513
Outside director fees in common stock	341		367		166
Total stock-based compensation expense	$	3,620	$	2,987	$	2,644

Schedule Stock-based Compensation Expense - By Expense Type



Stock-based Compensation Expense - by expense type	For the Fiscal Years Ended September 30,
(in thousands)	2015		2014		2013
Cost of revenue	$	341	$	466	$	562
Selling, general, and administrative	2,847		1,912		1,382
Research and development	432		609		700
Total stock-based compensation expense	$	3,620	$	2,987	$	2,644

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 Fiscal Years Ended September 30,
(in thousands, except per share)	2015			2014			2013

Numerator:
(Loss) income from continuing operations	$	(2,272	)	$	4,082		$	(5,554	)
Income from discontinued operations	65,372			770			10,542
Total	63,100			4,852			4,988
Allocation of undistributed earnings - continuing operations
Continuing operations	(2,272		)	4,082			(5,554		)
Undistributed earnings-allocated to participating securities	—			(6		)	(18		)
Allocation of undistributed earnings - continuing operations	(2,272		)	4,076			(5,572		)
Allocation of undistributed earnings - discontinued operations
Discontinued operations	65,372			770			10,542
Undistributed earnings-allocated to participating securities	—			—			(8		)
Allocation of undistributed earnings - discontinued operations	65,372			770			10,534
Undistributed earnings allocated to common shareholders for basic net income per share	$	63,100		$	4,846		$	4,962
Undistributed earnings allocated to common shareholders for diluted net income per share	$	63,100		$	4,846		$	4,962
Denominator:
Denominator for basic net (loss) income per share - weighted average shares outstanding	30,012			30,453			26,531
Dilutive options outstanding, unvested stock units and ESPP	—			324			—
Denominator for diluted net (loss) income per share - adjusted weighted average shares outstanding	30,012			30,777			26,531

Net (loss) income per basic share:
Continuing operations	$	(0.08	)	$	0.13		$	(0.21	)
Discontinued operations	2.18			0.03			0.40
Net income per basic share	$	2.10		$	0.16		$	0.19

Net (loss) income per diluted share:
Continuing operations	$	(0.08	)	$	0.13		$	(0.21	)
Discontinued operations	2.18			0.03			0.40
Net income per diluted share	$	2.10		$	0.16		$	0.19
Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation	1,391			1,936			2,672

Average market price of common stock	$	5.81		$	4.69		$	4.64

Schedule of Common Stock Reserved for Future Issuances

As of September 30, 2015, 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	696,459
Unvested restricted stock units	570,231
Purchases under the employee stock purchase plan	971,728
Issuance of stock-based awards under the Equity Plans	625,459
Purchases under the officer and director share purchase plan	88,741
Issuance of stock-based awards under the 2007 Directors' Stock Award Plan, as amended	208,162
Total reserved	3,160,780