Equity (Tables)

9 Months Ended

Jun. 30, 2017

The following table summarizes stock option activity under the Equity Plans for the nine months ended June 30, 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	(150,922	)	$3.27		$	887
Forfeited	(5,204	)	$4.99
Expired	(145,731	)	$19.46
Outstanding as of June 30, 2017	448,481		$20.69	1.81	$	585
Exercisable as of June 30, 2017	396,712		$22.78	0.97	$	276
Vested and expected to vest as of June 30, 2017	448,481		$20.69	1.81	$	585

(*) 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, 2016, the intrinsic value of options exercised was $82,000.

Schedule of Valuation Assumptions

The fair value of each stock option grant for the three and nine months ended June 30, 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 June 30,						For the nine months ended June 30,
	2017			2016			2017			2016
Black-Scholes weighted average assumptions:
Expected dividend rate	—		%	—		%	—		%	—		%
Expected stock price volatility rate	—		%	60.4		%	—		%	60.9		%
Risk-free interest rate	—		%	1.4		%	—		%	1.6		%
Expected term (in years)	—			6.0			—			6.0

Weighted average grant date fair value per share of stock options granted:	$	—		$	3.06		$	—		$	3.40

Schedule of Restricted Stock Activity

The following table summarizes the activity related to RSUs for the nine months ended June 30, 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	307,509		$8.44
Vested	(351,489	)	$4.13
Forfeited	(33,771	)	$4.76
Non-vested as of June 30, 2017	800,665		$5.88

Schedule of Performance Share Activity

The following table summarizes the activity related to PSUs for the nine months ended June 30, 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	(4,808	)	$13.36
Non-vested as of June 30, 2017	362,041		$8.27

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)	2017		2016		2017		2016
Employee stock options	$	12	$	9	$	34	$	25
Restricted stock awards and units	488		606		1,211		1,325
Performance stock units	410		—		1,049		—
Employee stock purchase plan	92		57		210		168
Outside director fees in common stock	78		55		168		185
Total stock-based compensation expense	$	1,080	$	727	$	2,672	$	1,703

Schedule of 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)	2017		2016		2017		2016
Cost of revenue	$	113	$	81	$	353	$	263
Selling, general, and administrative	824		555		1,957		1,163
Research and development	143		91		362		277
Total stock-based compensation expense	$	1,080	$	727	$	2,672	$	1,703

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 June 30,					For the nine months ended June 30,
(in thousands, except per share)	2017			2016		2017			2016

Numerator:
Income from continuing operations	$	2,436		$	1,178	$	6,057		$	882
(Loss) income from discontinued operations	(11		)	123		(27		)	5,388
Undistributed earnings allocated to common shareholders for basic and diluted net income per share	2,425			1,301		6,030			6,270
Denominator:
Denominator for basic net income per share - weighted average shares outstanding	26,833			26,103		26,577			25,913
Dilutive options outstanding, unvested stock units and ESPP	983			166		971			273
Denominator for diluted net income per share - adjusted weighted average shares outstanding	27,816			26,269		27,548			26,186

Net income (loss) per basic share:
Continuing operations	$	0.09		$	0.05	$	0.23		$	0.04
Discontinued operations	(0.00		)	0.00		(0.00		)	0.20
Net income per basic share	$	0.09		$	0.05	$	0.23		$	0.24

Net income (loss) per diluted share:
Continuing operations	$	0.09		$	0.05	$	0.22		$	0.04
Discontinued operations	(0.00		)	0.00		(0.00		)	0.20
Net income per diluted share	$	0.09		$	0.05	$	0.22		$	0.24
Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation	370			522		400			528

Average market price of common stock	$	10.00		$	5.64	$	8.66		$	6.00

Schedule of Common Stock Reserved for Future Issuances

As of June 30, 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	448,481
Unvested restricted stock units	800,665
Unvested performance stock units	362,041
Purchases under the employee stock purchase plan	973,322
Issuance of stock-based awards under the Equity Plans	2,725,158
Purchases under the officer and director share purchase plan	88,741
Total reserved	5,398,408