QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended | |||||
or | |||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from ___ to ___ |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | |||||||||
(Nasdaq Global Market) |
Page | |||||||||||||||||
For the three months ended March 31, | For the six months ended March 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expense: | |||||||||||||||||||||||
Selling, general, and administrative | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Loss (gain) on sale of assets | ( | ( | |||||||||||||||||||||
Total operating expense | |||||||||||||||||||||||
Operating income (loss) | ( | ( | |||||||||||||||||||||
Other (expense) income: | |||||||||||||||||||||||
Interest (expense) income, net | ( | ( | ( | ||||||||||||||||||||
Foreign exchange (loss) gain | ( | ( | ( | ||||||||||||||||||||
Total other (expense) income | ( | ( | ( | ||||||||||||||||||||
Income (loss) before income tax (expense) benefit | ( | ( | |||||||||||||||||||||
Income tax (expense) benefit | ( | ( | |||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Foreign exchange translation adjustment | ( | ( | ( | ||||||||||||||||||||
Comprehensive income (loss) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Per share data: | |||||||||||||||||||||||
Net income (loss) per basic share | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Weighted-average number of basic shares outstanding | |||||||||||||||||||||||
Net income (loss) per diluted share | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Weighted-average number of diluted shares outstanding |
As of March 31, 2021 | As of September 30, 2020 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable, net of credit loss of $ | |||||||||||
Contract assets | |||||||||||
Inventory | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Assets held for sale | |||||||||||
Total current assets | |||||||||||
Property, plant, and equipment, net | |||||||||||
Goodwill | |||||||||||
Operating lease right-of-use assets | |||||||||||
Other intangible assets, net | |||||||||||
Other non-current assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES and SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
PPP liability - current | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Operating lease liabilities - current | |||||||||||
Total current liabilities | |||||||||||
PPP liability - non-current | |||||||||||
Operating lease liabilities - non-current | |||||||||||
Asset retirement obligations | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 11) | |||||||||||
Shareholders’ equity: | |||||||||||
Common stock, | |||||||||||
Treasury stock at cost; | ( | ( | |||||||||
Accumulated other comprehensive income | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
For the three months ended March 31, | For the six months ended March 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Shares of Common Stock | |||||||||||||||||||||||
Balance, beginning of period | |||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||
Stock option exercises | |||||||||||||||||||||||
Issuance of restricted stock units | |||||||||||||||||||||||
Issuance of common stock - ESPP | |||||||||||||||||||||||
Sale of common stock | |||||||||||||||||||||||
Balance, end of period | |||||||||||||||||||||||
Value of Common Stock | |||||||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||
Stock option exercises | |||||||||||||||||||||||
Tax withholding paid on behalf of employees for stock-based awards | ( | ( | |||||||||||||||||||||
Issuance of restricted stock units | |||||||||||||||||||||||
Issuance of common stock - ESPP | |||||||||||||||||||||||
BOD consulting and other fees | |||||||||||||||||||||||
Sale of common stock, net of offering costs | |||||||||||||||||||||||
Balance, end of period | |||||||||||||||||||||||
Treasury stock, beginning and ending of period | ( | ( | ( | ( | |||||||||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||||||||||||
Balance, beginning of period | |||||||||||||||||||||||
Translation adjustment | ( | ( | ( | ||||||||||||||||||||
Balance, end of period | |||||||||||||||||||||||
Accumulated Deficit | |||||||||||||||||||||||
Balance, beginning of period | ( | ( | ( | ( | |||||||||||||||||||
Net income (loss) | ( | ( | |||||||||||||||||||||
Balance, end of period | ( | ( | ( | ( | |||||||||||||||||||
Total Shareholders’ Equity | $ | $ | $ | $ |
For the six months ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization expense | |||||||||||
Stock-based compensation expense | |||||||||||
Provision adjustments related to credit loss | ( | ||||||||||
Provision adjustments related to product warranty | |||||||||||
Gain (loss) on disposal of property, plant and equipment | ( | ||||||||||
Other | ( | ( | |||||||||
Total non-cash adjustments | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable and contract assets | ( | ( | |||||||||
Inventory | ( | ||||||||||
Other assets | ( | ||||||||||
Accounts payable | ( | ||||||||||
Accrued expenses and other current liabilities | ( | ||||||||||
Total change in operating assets and liabilities | ( | ( | |||||||||
Net cash provided by (used in) operating activities | ( | ||||||||||
Cash flows from investing activities: | |||||||||||
Purchase of equipment | ( | ( | |||||||||
Proceeds from disposal of property, plant and equipment | |||||||||||
Net cash (used in) provided by investing activities | ( | ||||||||||
Cash flows from financing activities: | |||||||||||
Net payments on credit facilities | ( | ||||||||||
Proceeds from employee stock purchase plan and equity awards | |||||||||||
Proceeds from sale of common stock | |||||||||||
Issuance cost associated with sale of common stock | ( | ||||||||||
Taxes paid related to net share settlement of equity awards | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of exchange rate changes provided by foreign currency | |||||||||||
Net increase in cash, cash equivalents and restricted cash | |||||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||
Cash paid during the period for interest | $ | $ | |||||||||
Cash paid during the period for income taxes | $ | $ | |||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||||||
Changes in accounts payable related to purchases of equipment | $ | ( | $ | ( |
For the three months ended March 31, | For the six months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2021 | % of Revenue | 2020 | % of Revenue | 2021 | % of Revenue | 2020 | % of Revenue | |||||||||||||||||||||||||||||||||||||||
Navigation and Inertial Sensing | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Defense Optoelectronics | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
CATV Lasers and Transmitters | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Chip Devices | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Other | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | % | $ | % | $ | % | $ | % |
(in thousands) | As of March 31, 2021 | As of September 30, 2020 | As of March 31, 2020 | ||||||||||||||
Cash | $ | $ | $ | ||||||||||||||
Cash equivalents | |||||||||||||||||
Restricted cash | |||||||||||||||||
Total cash, cash equivalents and restricted cash | $ | $ | $ |
As of | |||||||||||
(in thousands) | March 31, 2021 | September 30, 2020 | |||||||||
Accounts receivable, gross | $ | $ | |||||||||
Allowance for credit loss | ( | ( | |||||||||
Accounts receivable, net | $ | $ |
As of | |||||||||||
(in thousands) | March 31, 2021 | September 30, 2020 | |||||||||
Raw materials | $ | $ | |||||||||
Work in-process | |||||||||||
Finished goods | |||||||||||
Inventory balance at end of period | $ | $ |
As of | |||||||||||
(in thousands) | March 31, 2021 | September 30, 2020 | |||||||||
Equipment | $ | $ | |||||||||
Furniture and fixtures | |||||||||||
Computer hardware and software | |||||||||||
Leasehold improvements | |||||||||||
Construction in progress | |||||||||||
Property, plant, and equipment, gross | $ | $ | |||||||||
Accumulated depreciation | ( | ( | |||||||||
Property, plant, and equipment, net | $ | $ |
As of | |||||||||||
(in thousands) | March 31, 2021 | September 30, 2020 | |||||||||
Compensation | $ | $ | |||||||||
Warranty | |||||||||||
Legal expenses and other professional fees | |||||||||||
Contract liabilities | |||||||||||
Income and other taxes | |||||||||||
Severance and restructuring accruals | |||||||||||
Other | |||||||||||
Accrued expenses and other current liabilities | $ | $ |
Stock-based Compensation Expense - by award type | For the three months ended March 31, | For the six months ended March 31, | |||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Employee stock options | $ | $ | $ | $ | |||||||||||||||||||
Restricted stock units and awards | |||||||||||||||||||||||
Performance stock units and awards | |||||||||||||||||||||||
Employee stock purchase plan | |||||||||||||||||||||||
Outside director equity awards and fees in common stock | |||||||||||||||||||||||
Total stock-based compensation expense | $ | $ | $ | $ |
Stock-based Compensation Expense - by expense type | For the three months ended March 31, | For the six months ended March 31, | |||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Cost of revenue | $ | $ | $ | $ | |||||||||||||||||||
Selling, general, and administrative | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Total stock-based compensation expense | $ | $ | $ | $ |
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) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Income (Loss) from continuing operations | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Undistributed earnings allocated to common shareholders for basic and diluted net income (loss) per share | ( | ( | |||||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Denominator for basic net income (loss) per share - weighted average shares outstanding | |||||||||||||||||||||||
Denominator for fully diluted net (income) loss per share - weighted average shares outstanding | |||||||||||||||||||||||
Net income (loss) per basic share | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Net income (loss) per fully diluted share | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Weighted average antidilutive options, unvested restricted stock units and awards, unvested performance stock units and ESPP shares excluded from the computation |
Future Issuances | Number of Common Stock Shares Available for Future Issuances | ||||
Exercise of outstanding stock options | |||||
Unvested restricted stock units and awards | |||||
Unvested performance stock units and awards (at | |||||
Purchases under the employee stock purchase plan | |||||
Issuance of stock-based awards under the Equity Plans | |||||
Purchases under the officer and director share purchase plan | |||||
Total reserved |
(in thousands) | For the three months ended March 31, | For the six months ended March 31, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Aerospace and Defense | $ | $ | $ | $ | |||||||||||||||||||
Broadband | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | |||||||||||||||||||
Segment Profit: | |||||||||||||||||||||||
Aerospace and Defense gross profit | $ | $ | $ | $ | |||||||||||||||||||
Aerospace & Defense R&D expense | |||||||||||||||||||||||
Aerospace and Defense segment profit | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Broadband gross profit | $ | $ | $ | $ | |||||||||||||||||||
Broadband R&D expense | |||||||||||||||||||||||
Broadband segment profit | $ | $ | $ | $ | |||||||||||||||||||
Total consolidated segment profit | $ | $ | $ | $ | |||||||||||||||||||
Unallocated expense: | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Loss (gain) on sale of assets | ( | ( | |||||||||||||||||||||
Interest expense (income), net | ( | ||||||||||||||||||||||
Foreign exchange loss (gain) | ( | ||||||||||||||||||||||
Total unallocated expense | |||||||||||||||||||||||
Income (loss) before income tax expense (benefit) | $ | $ | ( | $ | $ | ( |
Revenue by Geographic Region | For the three months ended March 31, | For the six months ended March 31, | |||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
United States and Canada | $ | $ | $ | $ | |||||||||||||||||||
Asia | |||||||||||||||||||||||
Europe | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ |
For the three months ended March 31, | For the six months ended March 31, | |||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||
Revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
Cost of revenue | 61.9 | 73.1 | 62.1 | 71.8 | ||||||||||||||||
Gross profit | 38.1 | 26.9 | 37.9 | 28.2 | ||||||||||||||||
Operating expense: | ||||||||||||||||||||
Selling, general, and administrative | 15.8 | 29.9 | 16.5 | 26.4 | ||||||||||||||||
Research and development | 9.8 | 19.2 | 11.2 | 18.7 | ||||||||||||||||
Loss (gain) on sale of assets | 0.6 | (1.3) | 0.3 | (3.9) | ||||||||||||||||
Total operating expense | 26.2 | 47.8 | 28.0 | 41.2 | ||||||||||||||||
Operating income (loss) | 11.9 | (20.9) | 9.9 | (13.0) | ||||||||||||||||
Other (expense) income: | ||||||||||||||||||||
Interest expense, net | (0.1) | — | (0.1) | — | ||||||||||||||||
Foreign exchange (loss) gain | (0.2) | (0.6) | 0.2 | — | ||||||||||||||||
Total other (expense) income | (0.3) | (0.6) | 0.1 | — | ||||||||||||||||
Income (loss) before income tax expense | 11.6 | (21.5) | 10.0 | (13.0) | ||||||||||||||||
Income tax (expense) benefit | (0.2) | 0.2 | (0.3) | — | ||||||||||||||||
Net income (loss) | 11.4 | % | (21.3) | % | 9.7 | % | (13.0) | % |
For the three months ended March 31, | |||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||
Revenue | $ | 38,406 | $ | 23,850 | $ | 14,556 | 61.0 | % | |||||||||||||||
Cost of revenue | 23,772 | 17,423 | 6,349 | 36.4 | % | ||||||||||||||||||
Gross profit | 14,634 | 6,427 | 8,207 | 127.7 | % | ||||||||||||||||||
Operating expense: | |||||||||||||||||||||||
Selling, general, and administrative | 6,062 | 7,139 | (1,077) | (15.1) | % | ||||||||||||||||||
Research and development | 3,771 | 4,584 | (813) | (17.7) | % | ||||||||||||||||||
Loss (gain) on sale of assets | 218 | (315) | 533 | 169.2 | % | ||||||||||||||||||
Total operating expense | 10,051 | 11,408 | (1,357) | (11.9) | % | ||||||||||||||||||
Operating income (loss) | 4,583 | (4,981) | 9,564 | 192.0 | % | ||||||||||||||||||
Other (expense) income: | |||||||||||||||||||||||
Interest (expense) income, net | (49) | 1 | (50) | (5,000.0) | % | ||||||||||||||||||
Foreign exchange loss | (68) | (156) | 88 | 56.4 | % | ||||||||||||||||||
Total other income | (117) | (155) | 38 | 24.5 | % | ||||||||||||||||||
Income (loss) before income tax (expense) benefit | 4,466 | (5,136) | 9,602 | 187.0 | % | ||||||||||||||||||
Income tax (expense) benefit | (82) | 55 | (137) | (249.1) | % | ||||||||||||||||||
Net income (loss) | $ | 4,384 | $ | (5,081) | $ | 9,465 | 186.3 | % |
For the three months ended March 31, | |||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||
Aerospace and Defense revenue | $ | 13,134 | $ | 13,013 | $ | 121 | 0.9 | % | |||||||||||||||
Broadband revenue | 25,272 | 10,837 | 14,435 | 133.2 | % | ||||||||||||||||||
Total revenue | $ | 38,406 | $ | 23,850 | $ | 14,556 | 61.0 | % |
For the three months ended March 31, | |||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||
Aerospace and Defense gross profit | $ | 3,775 | $ | 2,844 | $ | 931 | 32.7 | % | |||||||||||||||
Broadband gross profit | 10,859 | 3,583 | 7,276 | 203.1 | % | ||||||||||||||||||
Total gross profit | $ | 14,634 | $ | 6,427 | $ | 8,207 | 127.7 | % |
For the six months ended March 31, | |||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||
Revenue | $ | 71,832 | $ | 49,332 | $ | 22,500 | 45.6 | % | |||||||||||||||
Cost of revenue | 44,626 | 35,431 | 9,195 | 26.0 | % | ||||||||||||||||||
Gross profit | 27,206 | 13,901 | 13,305 | 95.7 | % | ||||||||||||||||||
Operating expense: | |||||||||||||||||||||||
Selling, general, and administrative | 11,860 | 13,026 | (1,166) | (9.0) | % | ||||||||||||||||||
Research and development | 8,067 | 9,226 | (1,159) | (12.6) | % | ||||||||||||||||||
Loss (gain) on sale of assets | 189 | (1,917) | 2,106 | 109.9 | % | ||||||||||||||||||
Total operating expense | 20,116 | 20,335 | (219) | (1.1) | % | ||||||||||||||||||
Operating income (loss) | 7,090 | (6,434) | 13,524 | 210.2 | % | ||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense, net | (98) | (14) | (84) | (600.0) | % | ||||||||||||||||||
Foreign exchange gain (loss) | 169 | (9) | 178 | 1,977.8 | % | ||||||||||||||||||
Total other income (expense) | 71 | (23) | 94 | 408.7 | % | ||||||||||||||||||
Income (loss) before income tax expense | 7,161 | (6,457) | 13,618 | 210.9 | % | ||||||||||||||||||
Income tax (expense) benefit | (208) | 41 | (249) | (607.3) | % | ||||||||||||||||||
Net income (loss) | $ | 6,953 | $ | (6,416) | $ | 13,369 | 208.4 | % |
For the six months ended March 31, | |||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||
Aerospace and Defense revenue | $ | 26,770 | $ | 26,717 | $ | 53 | 0.2 | % | |||||||||||||||
Broadband revenue | 45,062 | 22,615 | 22,447 | 99.3 | % | ||||||||||||||||||
Total revenue | $ | 71,832 | $ | 49,332 | $ | 22,500 | 45.6 | % |
For the six months ended March 31, | |||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||
Aerospace and Defense gross profit | $ | 7,875 | $ | 7,332 | $ | 543 | 7.4 | % | |||||||||||||||
Broadband gross profit | 19,331 | 6,569 | 12,762 | 194.3 | % | ||||||||||||||||||
Total gross profit | $ | 27,206 | $ | 13,901 | $ | 13,305 | 95.7 | % |
Operating Activities | For the six months ended March 31, | ||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 1,772 | $ | (7,118) | $ | 8,890 | 124.9 | % |
Investing Activities | For the six months ended March 31, | ||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||
Net cash (used in) provided by investing activities | $ | (559) | $ | 12,486 | $ | (13,045) | (104.5) | % |
Financing Activities | For the six months ended March 31, | ||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||
Net cash provided by (used in) financing activities | $ | 33,486 | $ | (5,263) | $ | 38,749 | (736.3) | % |
2.1 | ||||||||
2.2 | ||||||||
2.3 | ||||||||
2.4 | ||||||||
3.1 | ||||||||
10.1† | ||||||||
10.2†** | ||||||||
10.3†** | ||||||||
10.4†** | ||||||||
31.1** | ||||||||
31.2** | ||||||||
32.1*** | ||||||||
32.2*** | ||||||||
101.INS** | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH** | XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL** | XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.LAB** | XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE** | XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
101.DEF** | XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
104** | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). |
EMCORE CORPORATION | ||||||||||||||
Date: | May 7, 2021 | By: | /s/ Jeffrey Rittichier | |||||||||||
Jeffrey Rittichier | ||||||||||||||
Chief Executive Officer (Principal Executive Officer) | ||||||||||||||
Date: | May 7, 2021 | By: | /s/ Tom Minichiello | |||||||||||
Tom Minichiello | ||||||||||||||
Chief Financial Officer (Principal Financial and Accounting Officer) |
Cash Compensation | |||||
All Board Members | |||||
Annual Cash Retainer | $50,000 | ||||
Board Committee Chairpersons | |||||
Annual Audit Committee Chairperson Retainer | $20,000 | ||||
Annual Compensation Committee Chairperson Retainer | $ 9,500 | ||||
Annual Nominating Committee Chairperson Retainer | $ 8,000 | ||||
Annual Strategy and Alternatives Committee Chairperson Retainer | $ 8,000 | ||||
Other Board Committee Members | |||||
Annual Audit Committee Member Retainer | $10,000 | ||||
Annual Compensation Committee Member Retainer | $ 5,000 | ||||
Annual Nominating Committee Member Retainer | $ 3,000 | ||||
Annual Strategy and Alternatives Committee Member Retainer | $ 3,000 | ||||
3-Year Equity Compensation | |||||
3-Year Equity Award | $225,000 | ||||
Chairperson 3-Year Equity Award | $127,500 |
Total Shareholder Return for the Performance Period Relative to the Total Shareholder Return for the Index | % of Target Number of Units Becoming Vested and Nonforfeitable | ||||
<50% of Index | 0% | ||||
50% of Index | 0% | ||||
60% of Index | 20% | ||||
80% of Index | 60% | ||||
100% of Index | 100% | ||||
120% of Index | 140% | ||||
140% of Index | 180% | ||||
150% of Index | 200% | ||||
>150 of Index% | 200% |
Date: | May 7, 2021 | By: | /s/ Jeffrey Rittichier | ||||||||||||||
Jeffrey Rittichier | |||||||||||||||||
Chief Executive Officer | |||||||||||||||||
(Principal Executive Officer) |
Date: | May 7, 2021 | By: | /s/ Tom Minichiello | ||||||||||||||
Tom Minichiello | |||||||||||||||||
Chief Financial Officer | |||||||||||||||||
(Principal Financial and Accounting Officer) |
Date: | May 7, 2021 | By: | /s/ Jeffrey Rittichier | ||||||||||||||
Jeffrey Rittichier | |||||||||||||||||
Chief Executive Officer | |||||||||||||||||
(Principal Executive Officer) |
Date: | May 7, 2021 | By: | /s/ Tom Minichiello | ||||||||||||||
Tom Minichiello | |||||||||||||||||
Chief Financial Officer | |||||||||||||||||
(Principal Financial and Accounting Officer) |
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Mar. 31, 2021 |
Mar. 31, 2020 |
Mar. 31, 2021 |
Mar. 31, 2020 |
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Income Statement [Abstract] | ||||
Revenue | $ 38,406 | $ 23,850 | $ 71,832 | $ 49,332 |
Cost of revenue | 23,772 | 17,423 | 44,626 | 35,431 |
Gross profit | 14,634 | 6,427 | 27,206 | 13,901 |
Operating expense: | ||||
Selling, general, and administrative | 6,062 | 7,139 | 11,860 | 13,026 |
Research and development | 3,771 | 4,584 | 8,067 | 9,226 |
Loss (gain) on sale of assets | 218 | (315) | 189 | (1,917) |
Total operating expense | 10,051 | 11,408 | 20,116 | 20,335 |
Operating income (loss) | 4,583 | (4,981) | 7,090 | (6,434) |
Other (expense) income: | ||||
Interest (expense) income, net | (49) | 1 | (98) | (14) |
Foreign exchange (loss) gain | (68) | (156) | 169 | (9) |
Total other (expense) income | (117) | (155) | 71 | (23) |
Income (loss) before income tax (expense) benefit | 4,466 | (5,136) | 7,161 | (6,457) |
Income tax (expense) benefit | (82) | 55 | (208) | 41 |
Net income (loss) | 4,384 | (5,081) | 6,953 | (6,416) |
Foreign exchange translation adjustment | (11) | 29 | (21) | (7) |
Comprehensive income (loss) | $ 4,373 | $ (5,052) | $ 6,932 | $ (6,423) |
Per share data: | ||||
Net income (loss) per basic share (in dollars per share) | $ 0.13 | $ (0.18) | $ 0.22 | $ (0.22) |
Weighted-average number of basic shares outstanding (in shares) | 32,968 | 29,033 | 31,219 | 28,931 |
Net income (loss) per diluted share (in dollars per share) | $ 0.13 | $ (0.18) | $ 0.21 | $ (0.22) |
Weighted-average number of diluted shares outstanding (in shares) | 34,451 | 29,033 | 32,492 | 28,931 |
Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Sep. 30, 2020 |
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Accounts receivable: | ||
Allowance for doubtful accounts | $ 175 | $ 227 |
Shareholders’ equity: | ||
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 43,681,000 | 36,461,000 |
Common stock, shares outstanding (in shares) | 36,775,000 | 29,551,000 |
Treasury stock, shares held (in shares) | 6,906,000 | 6,906,000 |
Description of Business |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of Business | Description of Business Business Overview EMCORE Corporation (referred to herein, together with its subsidiaries, as the “Company,” “we,” “our,” or “EMCORE”) was established in 1984 as a New Jersey corporation. The Company became publicly traded in 1997 and is listed on The Nasdaq Stock Market under the ticker symbol EMKR. EMCORE is a leading provider of sensors for navigation in the Aerospace and Defense market as well as a manufacturer of lasers and optical subsystems for use in the cable TV industry. EMCORE pioneered the linear fiber optic transmission technology that enabled the world’s first delivery of Cable TV (“CATV”) directly on fiber, and today is a leading provider of advanced Mixed-Signal Optics products that enable communications systems and service providers to meet growing demand for increased bandwidth and connectivity. The Mixed-Signal Optics technology at the heart of our broadband communications products is shared with our fiber optic gyros and inertial sensors to provide the aerospace and defense markets with state-of-the-art navigation systems technology. With the acquisition of Systron Donner Inertial, Inc. (“SDI”), a navigation systems provider with a scalable, chip-based platform for higher volume gyro applications utilizing Quartz MEMS technology, in June 2019, EMCORE further expanded its portfolio of gyros and inertial sensors with SDI’s quartz MEMS gyro and accelerometer technology. EMCORE has fully vertically-integrated manufacturing capability through our indium phosphide compound semiconductor wafer fabrication facility at our headquarters in Alhambra, CA, and through our quartz processing and sensor manufacturing facility in Concord, CA. These facilities support EMCORE’s vertically-integrated manufacturing strategy for quartz and fiber optic gyro products, for navigation systems, and for our chip, laser, transmitter, and receiver products for broadband applications. With both analog and digital circuits on multiple chips, or even a single chip, the value of Mixed-Signal device solutions is often substantially greater than traditional digital applications and requires a specialized expertise held by EMCORE which is unique in the optics industry. Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim information, and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by U.S. GAAP for annual financial statements. In our opinion, the interim financial statements reflect all adjustments, which are all normal recurring adjustments, that are necessary to provide a fair presentation of the financial results for the interim periods presented. Operating results for interim periods are not necessarily indicative of results that may be expected for an entire fiscal year. The condensed consolidated balance sheet as of September 30, 2020 has been derived from the audited consolidated financial statements as of such date. For a more complete understanding of our business, financial position, operating results, cash flows, risk factors and other matters, please refer to our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. Significant Accounting Policies and Estimates Our significant accounting policies are detailed in “Note 2 - Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended September 30, 2020. There have been no significant changes to our accounting policies during the six months ended March 31, 2021. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, as of the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. If these estimates differ significantly from actual results, the impact to the condensed consolidated financial statements may be material. There have been no material changes in our critical accounting policies and estimates from those disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. Please refer to Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended September 30, 2020 for a discussion of our critical accounting policies and estimates. Disaggregation of Revenue - Revenue is classified based on the product line of business. For additional information on the disaggregated revenues by geographical region, see "Note 13 – Segment Data and Related Information" in the notes to the condensed consolidated financial statements. Revenue is also classified by major product category and is presented below:
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Recent Accounting Pronouncements |
6 Months Ended |
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Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements (a)New Accounting Updates Recently Adopted •In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes the way entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net earnings. The new standard is effective for annual periods beginning after December 15, 2019, including interim periods within those annual periods. The new standard was effective for our fiscal year beginning October 1, 2020. We adopted the new standard on October 1, 2020, and it did not have a material impact on the condensed consolidated financial statements. (b)Recent Accounting Standards or Updates Not Yet Effective •In March 2020, the FASB issued ASU 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The new standard is effective for annual periods beginning after December 15, 2020, including interim periods within those annual periods. The new standard will be effective for our fiscal year beginning October 1, 2021 and early adoption is permitted. The Company is currently evaluating the new guidance to determine the impact it may have on the condensed consolidated financial statements and related disclosures.
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Cash, Cash Equivalents and Restricted Cash |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited consolidated balance sheets that sum to the total of the same amounts shown in the unaudited statements of consolidated cash flows:
The Company’s restricted cash includes cash balances which are legally or contractually restricted in use. The Company’s restricted cash is included in current assets as of March 31, 2021, September 30, 2020, and March 31, 2020.
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Fair Value Accounting |
6 Months Ended |
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Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Accounting | Fair Value Accounting Accounting Standards Codification Topic 820 (“ASC 820”), Fair Value Measurement, establishes a valuation hierarchy for disclosure of the inputs to valuation techniques used to measure fair value. This standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: •Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. •Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly, through market corroboration, for substantially the full term of the financial instrument. •Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets or liabilities at fair value. Classification of an asset or liability within this hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. Cash consists primarily of bank deposits or highly liquid short-term investments with a maturity of three months or less at the time of purchase. Restricted cash represents temporarily restricted deposits held as compensating balances against short-term borrowing arrangements. Cash, cash equivalents and restricted cash are based on Level 1 measurements. The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, contract assets, other current assets, and accounts payable approximate fair value because of the short maturity of these instruments.
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Accounts Receivable |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable | Accounts Receivable The components of accounts receivable consisted of the following:
The allowance for credit loss is based on the age of receivables and a specific identification of receivables considered at risk of collection.
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Inventory |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory | Inventory The components of inventory consisted of the following:
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Property, Plant, and Equipment, net |
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant, and Equipment, net | Property, Plant, and Equipment, net The components of property, plant, and equipment, net consisted of the following:
During the three and six months ended March 31, 2021, the Company sold certain equipment and recognized a loss on sale of assets of $0.2 million. In addition, in the fiscal year ended September 30, 2020, the Company entered into agreements to sell additional equipment and these assets have been reclassified to assets held for sale.
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Accrued Expenses and Other Current Liabilities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities The components of accrued expenses and other current liabilities consisted of the following:
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Credit Facilities and Debt |
6 Months Ended |
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Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Credit Facilities and Debt | Credit Facilities and Debt Credit Facilities On November 11, 2010, we entered into a Credit and Security Agreement (as amended to date, the “Credit Facility”) with Wells Fargo Bank, N.A. The Credit Facility is secured by the Company’s assets and is subject to a borrowing base formula based on the Company’s eligible accounts receivable, inventory, and machinery and equipment accounts. The Credit Facility matures in November 2021 and currently provides us with a revolving credit line of up to $15.0 million, subject to a borrowing base formula, that can be used for working capital requirements, letters of credit, acquisitions, and other general corporate purposes subject to a requirement, for certain specific uses, that the Company has liquidity of at least $25.0 million after such use. The Credit Facility requires us to maintain (a) liquidity of at least $10.0 million and (b) excess availability of at least $1.0 million. As of March 31, 2021, there was no amount outstanding under this Credit Facility and the Company was in compliance with all financial covenants. Also, as of March 31, 2021, the Credit Facility had approximately $0.5 million reserved for one outstanding stand-by letter of credit and $13.4 million available for borrowing. Debt On May 3, 2020, the Company entered into a Paycheck Protection Program Promissory Note and Agreement (the “PPP Loan Agreement”) with Wells Fargo Bank, N.A. under the Paycheck Protection Program (“PPP”) established under the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) to receive loan proceeds of approximately $6.5 million (the “PPP Loan”), which the Company received on May 6, 2020. The PPP Loan matures on May 3, 2022 and bears interest at a fixed rate of 1.00% per annum, payable monthly. Monthly payments in the amount of $273,160 will be due and payable beginning at such time as is in accordance with the terms of the Paycheck Protection Flexibility Act of 2020 and continuing each month thereafter until maturity of the PPP Loan. There is no prepayment penalty. Under the terms of the PPP, all or a portion of the principal may be forgiven if the PPP Loan proceeds are used for qualifying expenses as described in the CARES Act, such as payroll costs, benefits, rent, and utilities. With respect to any portion of the PPP Loan that is not forgiven, the PPP Loan will be subject to customary provisions for a loan of this type, including customary events of default relating to, among other things, payment defaults and breaches of the provisions of the PPP Loan Agreement. The Company applied for forgiveness of the PPP Loan during the three months ended March 31, 2021, but it can make no assurance that forgiveness will be granted in part or in whole. As of March 31, 2021, $1.9 million is recorded in current liabilities and $4.6 million is recorded in long-term liabilities on the Company’s condensed consolidated balance sheet.
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Income and Other Taxes |
6 Months Ended |
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Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income and Other Taxes | Income and Other Taxes During the three months ended March 31, 2021 and 2020, the Company recorded income tax (expense) benefit of approximately $(82,000) and $55,000, respectively. Income tax expense for the three months ended March 31, 2021 and 2020 is composed primarily of state tax expense. The increase in income tax expense is driven by the State of California's temporary suspension of net operating loss ("NOL") utilization. During the six months ended March 31, 2021 and 2020, the Company recorded income tax (expense) benefit of approximately $(208,000) and $41,000, respectively. Income tax expense for the six months ended March 31, 2021 and 2020 is composed primarily of state tax expense. The increase in income tax expense is driven by the State of California’s temporary suspension of NOL utilization. For the three months ended March 31, 2021 and 2020 the effective tax rate on continuing operations was 1.9% and 0.2%, respectively. The higher tax rate for the three months ended March 31, 2021 is primarily driven by the State of California's temporary suspension of NOL utilization. For the six months ended March 31, 2021 and 2020, the effective tax rate on continuing operations was 2.9% and 0.1%, respectively. The increased tax rate for the six months ended March 31, 2021 is primarily driven by the State of California’s temporary suspension of NOL utilization. The Company uses estimates to forecast the results from continuing operations for the current fiscal year as well as permanent differences between book and tax accounting. We have not provided for income taxes on non-U.S. subsidiaries’ undistributed earnings as of March 31, 2021 because we plan to indefinitely reinvest the unremitted earnings of our non-U.S. subsidiaries and all of our non-U.S. subsidiaries historically have negative earnings and profits. All deferred tax assets have a full valuation allowance at March 31, 2021. On a quarterly basis, the Company evaluates the positive and negative evidence to assess whether the more likely than not criteria has been satisfied in determining whether there will be further adjustments to the valuation allowance. During the three and six months ended March 31, 2021 and 2020, there were no material increases or decreases in unrecognized tax benefits. As of March 31, 2021 and September 30, 2020, we had approximately $0.6 million of interest and penalties and $0.4 million of uncertain tax benefit reserved and accrued for as tax liabilities on our balance sheet. We expect that $1.0 million of uncertain tax benefit including interest and penalties will be settled within the next 12 months, which will impact the effective tax rate. Interest that is accrued on tax liabilities is recorded within interest expense on the condensed consolidated statements of operations.
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Commitments and Contingencies |
6 Months Ended |
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Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnifications: We have agreed to indemnify certain customers against claims of infringement of intellectual property rights of others in our sales contracts with these customers. Historically, we have not paid any claims under these customer indemnification obligations. We enter into indemnification agreements with each of our directors and executive officers pursuant to which we agree to indemnify them for certain potential expenses and liabilities arising from their status as a director or executive officer of the Company. We maintain directors and officers insurance, which may cover certain liabilities arising from our obligation to indemnify our directors and executive officers in certain circumstances. It is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular claim. Legal Proceedings: We are subject to various legal proceedings, claims, and litigation, either asserted or unasserted, that arise in the ordinary course of business. The outcome of these matters is currently not determinable and we are unable to estimate a range of loss, should a loss occur, from these proceedings. The ultimate outcome of legal proceedings involves judgments, estimates and inherent uncertainties and the results of these matters cannot be predicted with certainty. Professional legal fees are expensed when incurred. We accrue for contingent losses when such losses are probable and reasonably estimable. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. Should we fail to prevail in any legal matter or should several legal matters be resolved against the Company in the same reporting period, then the financial results of that particular reporting period could be materially affected. a) Intellectual Property Lawsuits We protect our proprietary technology by applying for patents where appropriate and, in other cases, by preserving the technology, related know-how and information as trade secrets. The success and competitive position of our product lines are impacted by our ability to obtain intellectual property protection for our research and development efforts. We have, from time to time, exchanged correspondence with third parties regarding the assertion of patent or other intellectual property rights in connection with certain of our products and processes. b) Resilience Litigation In February 2021, Resilience Capital (“Resilience”) filed a complaint against us with the Delaware Chancery Court containing claims arising from the February 2020 sale of SDI’s real property (the “Concord Property Sale”) located in Concord, California (the “Concord Real Property”) to Eagle Rock Holdings, LP (“Buyer”) and that certain Single-Tenant Triple Net Lease, dated as of February 10, 2020, entered into by and between SDI and the Buyer, pursuant to which SDI leased from the Buyer the Concord Real Property for a 15 year term. The Resilience complaint seeks, among other items, (i) a declaration that the Concord Property Sale included a non-cash component; (ii) a decree requiring us and Resilience to follow the appraisal requirements set forth in that certain Purchase and Sale Agreement (the "SDI Purchase Agreement"), dated as of June 7, 2019, by and among EMCORE Corporation, The Resilience Fund IV, L.P., The Resilience Fund IV-A, L.P., Aerospace Newco Holdings, Inc. and Ember Acquisition Sub, Inc.; (iii) recovery of Resilience’s costs and expenses; and (iv) pre- and post-judgment interest. In April 2021, we filed with the Delaware Chancery Court our answer to the Resilience complaint and counterclaims against Resilience, in which we are seeking, among other items, (i) dismissal of the Resilience complaint and/or granting of judgment in favor of EMCORE with respect to the Resilience complaint, (ii) entering final judgment against Resilience awarding damages to us for Resilience’s fraud and breaches of the SDI Purchase Agreement in an amount to be proven at trial and not less than $1,565,000, (iii) a judicial determination of the respective rights and duties of us and Resilience under the SDI Purchase Agreement, (iv) an award to us of costs and expenses and (v) pre- and post-judgment interest. We believe that the claims made by Resilience in its complaint are without merit and we intend to vigorously defend ourselves against them.
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Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity Equity Plans We provide long-term incentives to eligible officers, directors, and employees in the form of equity-based awards. We maintain three equity incentive compensation plans, collectively described as our “Equity Plans”: •the 2010 Equity Incentive Plan, •the 2012 Equity Incentive Plan, and •the 2019 Equity Incentive Plan. We issue new shares of common stock to satisfy awards issued under our Equity Plans. In March 2021, our shareholders approved the Amended and Restated EMCORE Corporation 2019 Equity Incentive Plan, which was adopted, subject to shareholder approval, by the Company’s Board of Directors in December 2020 and increased the maximum number of shares of the Company’s common stock that may be issued or transferred pursuant to awards under the 2019 Equity Incentive Plan by an additional 2,138,000 shares. Stock-based compensation The effect of recording stock-based compensation expense was as follows:
401(k) Plan We have a savings plan that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under this savings plan, participating employees may defer a portion of their pretax earnings, up to the Internal Revenue Service annual contribution limit. Since June 2015, all employer contributions are made in cash. During each of the three months ended March 31, 2021 and 2020, our matching contribution in cash was approximately $0.3 million. During each of the six months ended March 31, 2021 and 2020, our matching contribution in cash was approximately $0.6 million and $0.5 million, respectively. Income (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share:
Basic earnings per share is computed by dividing net income (loss) for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income (loss) for the period by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding restricted stock units and awards, performance stock units, stock options, and shares issuable under the employee stock purchase plan as applicable pursuant to the treasury stock method. The anti-dilutive stock options and shares of outstanding and unvested restricted stock were excluded from the computation of net loss per share for the three and six months ended March 31, 2020 due to the Company incurring a net loss for the period. Employee Stock Purchase Plan We maintain an Employee Stock Purchase Plan (“ESPP”) which provides employees an opportunity to purchase common stock through payroll deductions. The ESPP is a 6-month duration plan with new participation periods beginning on approximately February 25 and August 26 of each year. The purchase price is set at 85% of the average high and low market price of our common stock on either the first or last trading day of the participation period, whichever is lower, and annual contributions are limited to the lower of 10% of an employee’s compensation or $25,000. Public Offering On February 16, 2021, we closed our offering of 6,655,093 shares of our common stock, which included the full exercise of the underwriters’ option to purchase 868,056 additional shares of common stock, at a price to the public of $5.40 per share, resulting in net proceeds to us from the offering, after deducting the underwriting discounts and commissions and other offering expenses, of approximately $33.1 million. The shares were sold by us pursuant to an underwriting agreement with Cowen and Company, LLC, dated as of February 10, 2021. Future Issuances As of March 31, 2021, we had common stock reserved for the following future issuances:
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Segment Data and Related Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Data and Related Information | Segment Data and Related Information The reportable segments reported below are the Company’s segments for which separate financial information is available and upon which operating results are evaluated by the chief operating decision maker to assess performance and to allocate resources. The Company has determined that it has two reportable segments: (i) Aerospace and Defense and (ii) Broadband. The Company’s Chief Executive Officer is the chief operating decision maker and he assesses the performance of the operating segments and allocates resources based on segment profits. We do not allocate sales and marketing, general and administrative expenses, or interest expense and interest income to our segments, because management does not include the information in its measurement of the performance of the operating segments. Also, a measure of segment assets and liabilities, has not been provided to the Company's chief operating decision maker and therefore is not shown below. The Aerospace and Defense segment is comprised of two product lines: (a) Navigation and Inertial Sensing; and (b) Defense Optoelectronics. The Broadband segment is comprised of three product lines: (a) CATV Lasers and Transmitters; (b) Chip Devices; and (c) Other. Information on reportable segments utilized by our chief operating decision maker is as follows:
Revenue: The following table sets forth revenue by geographic region with revenue assigned to geographic regions based on our customers’ billing address.
Significant Customers: Significant customers are defined as customers representing greater than 10% of our consolidated revenue. Revenue from three of our significant customers represented an aggregate of 68% and 56% of our consolidated revenue for the three months ended March 31, 2021 and 2020, respectively. The increase in percentage from significant customers was driven by the increase in Broadband revenue. Revenue from three of our significant customers represented an aggregate of 69% and 53% of our consolidated revenue for the six months ended March 31, 2021 and 2020, respectively. The increase in percentage from significant customers was driven by the increase in Broadband revenue. Significant portions of the Company’s sales are concentrated among a limited number of customers. The duration, severity and future impact of the COVID-19 pandemic are highly uncertain and could result in significant disruptions to the business operations of the Company’s customers. If one or more of these significant customers significantly decreases their orders for the Company’s products, or if we are unable to deliver finished products to the Customer in connection with such orders, the Company’s business could be materially and adversely affected. Long-lived Assets: Long-lived assets consist of land, building and property, plant, and equipment. As of March 31, 2021 and September 30, 2020, approximately 98% and 97%, respectively, of our long-lived assets were located in the United States. The remaining long-lived assets are primarily located in China.
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Description of Business (Policies) |
6 Months Ended |
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Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Financial Statements | Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim information, and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by U.S. GAAP for annual financial statements. In our opinion, the interim financial statements reflect all adjustments, which are all normal recurring adjustments, that are necessary to provide a fair presentation of the financial results for the interim periods presented. Operating results for interim periods are not necessarily indicative of results that may be expected for an entire fiscal year. The condensed consolidated balance sheet as of September 30, 2020 has been derived from the audited consolidated financial statements as of such date. For a more complete understanding of our business, financial position, operating results, cash flows, risk factors and other matters, please refer to our Annual Report on Form 10-K for the fiscal year ended September 30, 2020.
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Significant Accounting Policies and Estimates | Significant Accounting Policies and Estimates Our significant accounting policies are detailed in “Note 2 - Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended September 30, 2020. There have been no significant changes to our accounting policies during the six months ended March 31, 2021. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, as of the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. If these estimates differ significantly from actual results, the impact to the condensed consolidated financial statements may be material. There have been no material changes in our critical accounting policies and estimates from those disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. Please refer to Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended September 30, 2020 for a discussion of our critical accounting policies and estimates.
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Disaggregation of Revenue and Revenue Recognition | Disaggregation of Revenue - Revenue is classified based on the product line of business. For additional information on the disaggregated revenues by geographical region, see "Note 13 – Segment Data and Related Information" in the notes to the condensed consolidated financial statements. |
New Accounting Updates Recently Adopted and Recent Accounting Standards or Updates Not Yet Effective | New Accounting Updates Recently Adopted •In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes the way entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net earnings. The new standard is effective for annual periods beginning after December 15, 2019, including interim periods within those annual periods. The new standard was effective for our fiscal year beginning October 1, 2020. We adopted the new standard on October 1, 2020, and it did not have a material impact on the condensed consolidated financial statements. (b)Recent Accounting Standards or Updates Not Yet Effective •In March 2020, the FASB issued ASU 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The new standard is effective for annual periods beginning after December 15, 2020, including interim periods within those annual periods. The new standard will be effective for our fiscal year beginning October 1, 2021 and early adoption is permitted. The Company is currently evaluating the new guidance to determine the impact it may have on the condensed consolidated financial statements and related disclosures.
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Fair Value of Financial Instruments | Accounting Standards Codification Topic 820 (“ASC 820”), Fair Value Measurement, establishes a valuation hierarchy for disclosure of the inputs to valuation techniques used to measure fair value. This standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: •Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. •Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly, through market corroboration, for substantially the full term of the financial instrument. •Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets or liabilities at fair value. Classification of an asset or liability within this hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs.
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Cash and Cash Equivalents | Cash consists primarily of bank deposits or highly liquid short-term investments with a maturity of three months or less at the time of purchase. |
Restricted Cash | Restricted cash represents temporarily restricted deposits held as compensating balances against short-term borrowing arrangements. |
Legal Costs | Professional legal fees are expensed when incurred. We accrue for contingent losses when such losses are probable and reasonably estimable. |
Segment Reporting | The reportable segments reported below are the Company’s segments for which separate financial information is available and upon which operating results are evaluated by the chief operating decision maker to assess performance and to allocate resources. The Company has determined that it has two reportable segments: (i) Aerospace and Defense and (ii) Broadband. The Company’s Chief Executive Officer is the chief operating decision maker and he assesses the performance of the operating segments and allocates resources based on segment profits. We do not allocate sales and marketing, general and administrative expenses, or interest expense and interest income to our segments, because management does not include the information in its measurement of the performance of the operating segments. Also, a measure of segment assets and liabilities, has not been provided to the Company's chief operating decision maker and therefore is not shown below.
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Description of Business (Tables) |
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue by Major Product Category | Revenue is also classified by major product category and is presented below:
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Cash, Cash Equivalents and Restricted Cash (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited consolidated balance sheets that sum to the total of the same amounts shown in the unaudited statements of consolidated cash flows:
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Accounts Receivable (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accounts Receivable | The components of accounts receivable consisted of the following:
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Inventory (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | The components of inventory consisted of the following:
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Property, Plant, and Equipment, net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment | The components of property, plant, and equipment, net consisted of the following:
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Accrued Expenses and Other Current Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Accrued Expenses and Other Current Liabilities | The components of accrued expenses and other current liabilities consisted of the following:
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Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock-based Compensation Expense - By Award Type | The effect of recording stock-based compensation expense was as follows:
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Schedule of Stock-based Compensation Expense - By Expense Type |
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Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net income (loss) per share:
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Schedule of Common Stock Reserved for Future Issuances | As of March 31, 2021, we had common stock reserved for the following future issuances:
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Segment Data and Related Information (Tables) |
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reportable Segment | Information on reportable segments utilized by our chief operating decision maker is as follows:
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Schedule of Revenue by Geographic Region | The following table sets forth revenue by geographic region with revenue assigned to geographic regions based on our customers’ billing address.
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Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Sep. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
---|---|---|---|---|
Cash and Cash Equivalents [Abstract] | ||||
Cash | $ 14,662 | $ 11,325 | $ 2,985 | |
Cash equivalents | 49,066 | 19,065 | 19,045 | |
Restricted cash | 1,553 | 148 | 60 | |
Total cash, cash equivalents and restricted cash | $ 65,281 | $ 30,538 | $ 22,090 | $ 21,977 |
Accounts Receivable - Schedule of Components of Accounts Receivable (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Sep. 30, 2020 |
---|---|---|
Receivables [Abstract] | ||
Accounts receivable, gross | $ 30,011 | $ 25,551 |
Allowance for credit loss | (175) | (227) |
Accounts receivable, net | $ 29,836 | $ 25,324 |
Inventory - Schedule of Components of Inventory (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Sep. 30, 2020 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 14,261 | $ 13,354 |
Work in-process | 9,921 | 8,381 |
Finished goods | 5,565 | 3,790 |
Inventory balance at end of period | $ 29,747 | $ 25,525 |
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Sep. 30, 2020 |
---|---|---|
Payables and Accruals [Abstract] | ||
Compensation | $ 5,763 | $ 6,916 |
Warranty | 976 | 803 |
Legal expenses and other professional fees | 443 | 211 |
Contract liabilities | 507 | 502 |
Income and other taxes | 1,137 | 1,265 |
Severance and restructuring accruals | 0 | 17 |
Other | 1,242 | 1,863 |
Accrued expenses and other current liabilities | $ 10,068 | $ 11,577 |
Income and Other Taxes - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Mar. 31, 2021 |
Mar. 31, 2020 |
Sep. 30, 2020 |
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Income Tax Disclosure [Abstract] | |||||
Income tax (expense) benefit | $ (82) | $ 55 | $ (208) | $ 41 | |
Effective tax rate on continuing operations | 1.90% | 0.20% | 2.90% | 0.10% | |
Interest and penalties accrued as tax liabilities | $ 600 | $ 600 | $ 600 | ||
Uncertain tax benefit | 400 | 400 | |||
Unrecognized tax benefit, to be recognized within next 12 months | $ 1,000 | $ 1,000 |
Commitments and Contingencies (Details) - Resilience Litigation - USD ($) |
1 Months Ended | |
---|---|---|
Apr. 30, 2021 |
Feb. 10, 2021 |
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Subsequent Event | Resilience Capital | ||
Loss Contingencies [Line Items] | ||
Damages sought value (not less than) | $ 1,565,000 | |
Concord Property | ||
Loss Contingencies [Line Items] | ||
Lease length in years | 15 years |
Equity - Schedule of Stock-based Compensation Expense - by Expense Category (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Mar. 31, 2021 |
Mar. 31, 2020 |
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Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 922 | $ 1,045 | $ 1,825 | $ 1,846 |
Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 203 | 202 | 344 | 338 |
Selling, general, and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 510 | 591 | 1,069 | 1,076 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 209 | $ 252 | $ 412 | $ 432 |
Segment Data and Related Information - Schedule of Reportable Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Mar. 31, 2021 |
Mar. 31, 2020 |
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Segment Reporting Information [Line Items] | ||||
Revenue | $ 38,406 | $ 23,850 | $ 71,832 | $ 49,332 |
Gross profit | 14,634 | 6,427 | 27,206 | 13,901 |
R&D expense | 3,771 | 4,584 | 8,067 | 9,226 |
Operating income (loss) | 4,583 | (4,981) | 7,090 | (6,434) |
Unallocated expense: | ||||
Selling, general, and administrative | 6,062 | 7,139 | 11,860 | 13,026 |
Loss (gain) on sale of assets | 218 | (315) | 189 | (1,917) |
Interest expense (income), net | 49 | (1) | 98 | 14 |
Foreign exchange loss (gain) | 68 | 156 | (169) | 9 |
Total unallocated expense | 6,397 | 6,979 | 11,978 | 11,132 |
Income (loss) before income tax expense (benefit) | 4,466 | (5,136) | 7,161 | (6,457) |
Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 38,406 | 23,850 | 71,832 | 49,332 |
Operating income (loss) | 10,863 | 1,843 | 19,139 | 4,675 |
Operating segments | Aerospace And Defense | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 13,134 | 13,013 | 26,770 | 26,717 |
Gross profit | 3,775 | 2,844 | 7,875 | 7,332 |
R&D expense | 3,157 | 3,991 | 6,843 | 7,942 |
Operating income (loss) | 618 | (1,147) | 1,032 | (610) |
Operating segments | Broadband | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 25,272 | 10,837 | 45,062 | 22,615 |
Gross profit | 10,859 | 3,583 | 19,331 | 6,569 |
R&D expense | 614 | 593 | 1,224 | 1,284 |
Operating income (loss) | $ 10,245 | $ 2,990 | $ 18,107 | $ 5,285 |
Segment Data and Related Information - Schedule of Revenue by Geographic Region (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Segment Reporting Information [Line Items] | ||||
Segment revenue | $ 38,406 | $ 23,850 | $ 71,832 | $ 49,332 |
United States and Canada | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenue | 33,106 | 19,887 | 62,452 | 40,082 |
Asia | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenue | 4,145 | 1,692 | 7,170 | 3,958 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenue | 558 | 1,516 | 1,214 | 3,405 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenue | $ 597 | $ 755 | $ 996 | $ 1,887 |
Segment Data and Related Information - Narrative (Details) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020
customer
|
Mar. 31, 2021
segment
customer
|
Mar. 31, 2020 |
Sep. 30, 2020 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of reporting segments | segment | 2 | ||||
Percentage of long-lived assets located in the United States | 98.00% | 98.00% | 97.00% | ||
Customer Concentration Risk | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Concentration risk, customers | customer | 3 | 3 | |||
Sales Revenue, Segment | Customer Concentration Risk | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
% of Revenue | 68.00% | 56.00% | 69.00% | 53.00% |
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