Equity (Tables)

12 Months Ended

Sep. 30, 2017

The following table summarizes stock option activity under the Equity Plans for fiscal year ended September 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	(157,879	)	$3.38		$	920
Forfeited	(7,936	)	$4.83
Expired	(257,725	)	$22.03
Outstanding as of September 30, 2017	326,798		$19.54	1.94	$	295
Exercisable as of September 30, 2017	282,378		$21.88	0.99	$	138
Vested and expected to vest as of September 30, 2017	326,798		$19.54	1.94	$	295

(*) 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 years ended September 30, 2016 and 2015, the intrinsic value of options exercised was $87,000 and $0.3 million, respectively.

Schedule of Valuation Assumptions

The fair value of each stock option grant for the fiscal years ended September 30, 2016 and 2015, 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 Fiscal Years Ended September 30,
	2017			2016			2015
Black-Scholes weighted average assumptions:
Expected dividend rate	—		%	—		%	—	%
Expected stock price volatility rate	—		%	60.9		%	66.1	%
Risk-free interest rate	—		%	1.6		%	1.8	%
Expected term (in years)	—			6.0			6.0

Weighted average grant date fair value per share of stock options granted:	$	—		$	3.40		$3.73

Schedule of Restricted Stock Activity

The following table summarizes the activity related to RSUs and RSAs for the fiscal year ended September 30, 2017:



Restricted Stock Activity	Restricted Stock Units			Restricted Stock Awards
Restricted Stock Activity	Number of Shares		Weighted Average Grant Date Fair Value	Number of Shares	Weighted Average Grant Date Fair Value
Non-vested as of September 30, 2016	878,416		$4.25	—	$0.00
Granted	307,509		$8.44	8,154	$8.20
Vested	(357,013	)	$4.15	—	$0.00
Canceled	(8,154	)	$5.50	—	$0.00
Forfeited	(42,674	)	$4.66	—	$0.00
Non-vested as of September 30, 2017	778,084		$5.91	8,154	$8.20

Schedule of Performance Share Activity

The following table summarizes the activity related to PSUs and PRSAs for the fiscal year ended September 30, 2017:



Performance Stock Activity	Performance Stock Units			Performance Stock Awards
Performance Stock Activity	Number of Shares (at Target)		Weighted Average Grant Date Fair Value	Number of Shares (at Target)	Weighted Average Grant Date Fair Value
Non-vested as of September 30, 2016	—		$0.00	—	$0.00
Granted	366,849		$8.34	33,333	$12.25
Vested	—		$0.00	—	$0.00
Canceled	(33,333	)	$7.34	—	$0.00
Forfeited	(4,808	)	$13.36	—	$0.00
Non-vested as of September 30, 2017	328,708		$8.36	33,333	$12.25

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)	2017		2016		2015
Employee stock options	$	45	$	38	$	194
Restricted stock units and awards	1,643		1,683		2,658
Performance stock units and awards	1,367		—		—
Employee stock purchase plan	300		223		143
401(k) match in common stock	—		—		284
Outside director fees in common stock	247		218		341
Total stock-based compensation expense	$	3,602	$	2,162	$	3,620

Schedule of Stock-based Compensation Expense - By Expense Type



Stock-based Compensation Expense - by expense type	For the Fiscal Years Ended September 30,
(in thousands)	2017		2016		2015
Cost of revenue	$	492	$	345	$	341
Selling, general, and administrative	2,605		1,445		2,847
Research and development	505		372		432
Total stock-based compensation expense	$	3,602	$	2,162	$	3,620

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 Fiscal Years Ended September 30,
(in thousands, except per share)	2017		2016		2015
Numerator:
Income from continuing operations	$	8,221	$	2,619	$	(2,272	)
(Loss) income from discontinued operations	14		5,647		65,372
Undistributed earnings allocated to common shareholders for basic and diluted net income per share	8,235		8,266		63,100
Denominator:
Denominator for basic net income per share - weighted average shares outstanding	26,659		25,979		30,012
Dilutive options outstanding, unvested stock units, unvested stock awards and ESPP	885		539		—
Denominator for diluted net income per share - adjusted weighted average shares outstanding	27,544		26,518		30,012

Net income (loss) per basic share:
Continuing operations	$	0.31	$	0.10	$	(0.08	)
Discontinued operations	0.00		0.22		2.18
Net income per basic share	$	0.31	$	0.32	$	2.10

Net income (loss) per diluted share:
Continuing operations	$	0.30	$	0.10	$	(0.08	)
Discontinued operations	0.00		0.21		2.18
Net income per diluted share	$	0.30	$	0.31	$	2.10
Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation	398		508		1,391

Average market price of common stock	$	8.92	$	5.88	$	5.81

Schedule of Common Stock Reserved for Future Issuances

As of September 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	326,798
Unvested restricted stock units	778,084
Unvested performance stock units	657,416
Purchases under the employee stock purchase plan	911,071
Issuance of stock-based awards under the Equity Plans	2,413,289
Purchases under the officer and director share purchase plan	88,741
Total reserved	5,175,399