Equity (Tables)

3 Months Ended

Dec. 31, 2015

The following table summarizes stock option activity under the Equity Plans for the three months ended December 31, 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, 2015	696,459		$22.47
Granted	9,200		$7.29
Exercised	(37,413	)	$4.98		$	80
Forfeited	(2,200	)	$5.61
Expired	(13,709	)	$29.56
Outstanding as of December 31, 2015	652,337		$23.17	2.80	$	256
Exercisable as of December 31, 2015	601,638		$24.59	2.26	$	240
Vested and expected to vest as of December 31, 2015	642,096		$23.43	2.70	$	254

(*) 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 three months ended December 31, 2014, the intrinsic value of options exercised was $49,000.

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 December 31,
	2015		2014
Black-Scholes weighted average assumptions:
Expected dividend rate	—	%	—		%
Expected stock price volatility rate	61.6	%	82.5		%
Risk-free interest rate	1.8	%	1.9		%
Expected term (in years)	6.0		6.0

Weighted average grant date fair value per share of stock options granted:	$4.18		$	3.63

Schedule of Restricted Stock Activity

The following table summarizes the activity related to RSUs for the three months ended December 31, 2015:



Restricted Stock Activity	Restricted Stock Units
	Number of Shares		Weighted Average Grant Date Fair Value
Non-vested as of September 30, 2015	570,231		$5.26
Granted	12,000		$7.82
Vested	(266	)	$4.35
Forfeited	(7,166	)	$5.15
Non-vested as of December 31, 2015	574,799		$5.31

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 December 31,
(in thousands)	2015		2014
Employee stock options	$	6	$	177
Restricted stock awards and units	266		1,259
Employee stock purchase plan	55		50
401(k) match in common stock	—		80
Outside director fees in common stock	36		208
Total stock-based compensation expense	$	363	$	1,774

Schedule Stock-based Compensation Expense - By Expense Type



Stock-based Compensation Expense - by expense type	For the three months ended December 31,
(in thousands)	2015		2014
Cost of revenue	$	69	$	104
Selling, general, and administrative	188		1,565
Research and development	106		105
Total stock-based compensation expense	$	363	$	1,774

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 December 31,
(in thousands, except per share)	2015			2014

Numerator:
Loss from continuing operations	$	(134	)	$	(3,130	)
Income from discontinued operations	1,121			59,258
Undistributed earnings allocated to common shareholders for basic and diluted net (loss) income per share	987			56,128
Denominator:
Denominator for basic net (loss) income per share - weighted average shares outstanding	25,697			31,217
Dilutive options outstanding, unvested stock units and ESPP	—			—
Denominator for diluted net (loss) income per share - adjusted weighted average shares outstanding	25,697			31,217

Net (loss) income per basic share:
Continuing operations	$	0.00		$	(0.10	)
Discontinued operations	0.04			1.90
Net income per basic share	$	0.04		$	1.80

Net (loss) income per diluted share:
Continuing operations	$	0.00		$	(0.10	)
Discontinued operations	$	0.04		$	1.90
Net income per diluted share	$	0.04		$	1.80
Weighted average antidilutive options, unvested restricted stock units and awards, warrants and ESPP shares excluded from the computation	858			2,649

Average market price of common stock	$	6.93		$	5.29

Schedule of Common Stock Reserved for Future Issuances

As of December 31, 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	652,337
Unvested restricted stock units	574,799
Purchases under the employee stock purchase plan	971,728
Issuance of stock-based awards under the Equity Plans	609,787
Purchases under the officer and director share purchase plan	88,741
Issuance of deferred stock-based awards under the Directors' Stock Award Plan, as amended	15,152
Grants of stock-based awards under the 2007 Directors' Stock Award Plan, as amended	193,010
Total reserved	3,105,554