Equity (Tables)

6 Months Ended

Mar. 31, 2017

The following table summarizes stock option activity under the Equity Plans for the six months ended March 31, 2017:



	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	(146,119	)	$3.26		$	856
Forfeited	(5,204	)	$4.99
Expired	(132,071	)	$19.64
Outstanding as of March 31, 2017	466,944		$20.43	2.13	$	447
Exercisable as of March 31, 2017	410,541		$22.59	1.25	$	202
Vested and expected to vest as of March 31, 2017	457,244		$20.76	1.99	$	405

(*) 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, 2016, the intrinsic value of options exercised was $80,000.

Schedule of Valuation Assumptions

The fair value of each stock option grant for the three and six months ended March 31, 2016, excluding the adjustment for a special dividend paid in July 2016, 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,
	2017			2016			2017			2016
Black-Scholes weighted average assumptions:
Expected dividend rate	—		%	—		%	—		%	—		%
Expected stock price volatility rate	—		%	61.0		%	—		%	61.3		%
Risk-free interest rate	—		%	1.5		%	—		%	1.6		%
Expected term (in years)	—			6.0			—			6.0

Weighted average grant date fair value per share of stock options granted:	$	—		$	2.97		$	—		$	3.64

Schedule of Restricted Stock Activity

The following table summarizes the activity related to RSUs for the six months ended March 31, 2017:



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	267,009		$8.04
Vested	(304,971	)	$4.04
Forfeited	(5,051	)	$4.14
Non-vested as of March 31, 2017	835,403		$5.53

Schedule of Performance Share Activity

The following table summarizes the activity related to PSUs for the six months ended March 31, 2017:



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 March 31, 2017	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 March 31,				For the six months ended March 31,
(in thousands)	2017		2016		2017		2016
Employee stock options	$	11	$	10	$	22	$	16
Restricted stock awards and units	369		453		723		719
Performance stock units	371		—		639		—
Employee stock purchase plan	66		56		118		111
Outside director fees in common stock	12		94		90		130
Total stock-based compensation expense	$	829	$	613	$	1,592	$	976

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)	2017		2016		2017		2016
Cost of revenue	$	147	$	113	$	240	$	182
Selling, general, and administrative	563		420		1,133		608
Research and development	119		80		219		186
Total stock-based compensation expense	$	829	$	613	$	1,592	$	976

Schedule of Earnings Per Share, Basic and Diluted

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 March 31,						For the six months ended March 31,
(in thousands, except per share)	2017			2016			2017			2016

Numerator:
Income (loss) from continuing operations	$	1,855		$	(162	)	$	3,621		$	(296	)
(Loss) income from discontinued operations	(7		)	4,144			(16		)	5,265
Undistributed earnings allocated to common shareholders for basic and diluted net income per share	1,848			3,982			3,605			4,969
Denominator:
Denominator for basic net income per share - weighted average shares outstanding	26,622			25,942			26,449			25,818
Dilutive options outstanding, unvested stock units and ESPP	963			—			917			—
Denominator for diluted net income per share - adjusted weighted average shares outstanding	27,585			25,942			27,366			25,818

Net income (loss) per basic share:
Continuing operations	$	0.07		$	(0.01	)	$	0.14		$	(0.01	)
Discontinued operations	(0.00		)	0.16			(0.00		)	0.20
Net income per basic share	$	0.07		$	0.15		$	0.14		$	0.19

Net income (loss) per diluted share:
Continuing operations	$	0.07		$	(0.01	)	$	0.13		$	(0.01	)
Discontinued operations	(0.00		)	$	0.16		(0.00		)	0.20
Net income per diluted share	$	0.07		$	0.15		$	0.13		$	0.19
Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation	370			721			550			794

Average market price of common stock	$	9.11		$	5.44		$	7.99		$	6.19

Schedule of Common Stock Reserved for Future Issuances

As of March 31, 2017, 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	466,944
Unvested restricted stock units	835,403
Unvested performance stock units	366,849
Purchases under the employee stock purchase plan	973,322
Issuance of stock-based awards under the Equity Plans	2,732,130
Purchases under the officer and director share purchase plan	88,741
Total reserved	5,463,389