Equity (Tables)

3 Months Ended

Dec. 31, 2016

The following table summarizes stock option activity under the Equity Plans for the three months ended December 31, 2016:



	Number of Shares		Weighted Average Exercise Price	Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value (*) (in thousands)
Outstanding as of September 30, 2016	750,338		$16.84
Granted	—		—
Exercised	(26,151	)	$3.99		$	120
Forfeited	(1,300	)	$4.11
Expired	(124,915	)	$19.91
Outstanding as of December 31, 2016	597,972		$16.79	2.44	$	1,101
Exercisable as of December 31, 2016	531,911		$18.30	1.67	$	832
Vested and expected to vest as of December 31, 2016	586,261		$17.03	2.31	$	1,054

(*) 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, 2015, the intrinsic value of options exercised was $80,000.

Schedule of Valuation Assumptions

The fair value of each stock option grant for the three months ended December 31, 2015, excluding the adjustment for the special dividend, 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
Black-Scholes weighted average assumptions:
Expected dividend rate	—		%
Expected stock price volatility rate	61.6		%
Risk-free interest rate	1.8		%
Expected term (in years)	6.0

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

Schedule of Restricted Stock Activity

The following table summarizes the activity related to RSUs for the three months ended December 31, 2016:



Restricted Stock Activity	Restricted Stock Units
	Number of Shares		Weighted Average Grant Date Fair Value
Non-vested as of September 30, 2016	878,416		$4.25
Granted	145,919		$7.29
Vested	(5,206	)	$6.01
Forfeited	(933	)	$4.74
Non-vested as of December 31, 2016	1,018,196		$4.67

Schedule of Performance Share Activity

The following table summarizes the activity related to PSUs for the three months ended December 31, 2016:



Performance Stock Activity	Performance Stock Units
	Number of Shares (at Target)	Weighted Average Grant Date Fair Value
Non-vested as of September 30, 2016	—	$0.00
Granted	366,849	$8.34
Vested	—	$0.00
Forfeited	—	$0.00
Non-vested as of December 31, 2016	366,849	$8.34

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)	2016		2015
Employee stock options	$	11	$	6
Restricted stock awards and units	354		266
Performance stock units	268		—
Employee stock purchase plan	52		55
Outside director fees in common stock	78		36
Total stock-based compensation expense	$	763	$	363

Schedule Stock-based Compensation Expense - By Expense Type



Stock-based Compensation Expense - by expense type	For the three months ended December 31,
(in thousands)	2016		2015
Cost of revenue	$	93	$	69
Selling, general, and administrative	570		188
Research and development	100		106
Total stock-based compensation expense	$	763	$	363

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 December 31,
(in thousands, except per share)	2016			2015

Numerator:
Income (loss) from continuing operations	$	1,766		$	(134	)
(Loss) income from discontinued operations	(9		)	1,121
Undistributed earnings allocated to common shareholders for basic and diluted net income per share	1,757			987
Denominator:
Denominator for basic net income per share - weighted average shares outstanding	26,279			25,697
Dilutive options outstanding, unvested stock units and ESPP	760			—
Denominator for diluted net income per share - adjusted weighted average shares outstanding	27,039			25,697

Net income per basic share:
Continuing operations	$	0.07		$	0.00
Discontinued operations	0.00			0.04
Net income per basic share	$	0.07		$	0.04

Net income (loss) per diluted share:
Continuing operations	$	0.07		$	0.00
Discontinued operations	0.00			$	0.04
Net income per diluted share	$	0.07		$	0.04
Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation	529			858

Average market price of common stock	$	6.88		$	6.93

Schedule of Common Stock Reserved for Future Issuances

As of December 31, 2016, 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	597,972
Unvested restricted stock units	1,018,196
Unvested performance stock units	366,849
Purchases under the employee stock purchase plan	1,044,678
Issuance of stock-based awards under the Equity Plans	416,358
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	28,840
Total reserved	3,561,634