Stock-based Compensation (Tables)

6 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of total stock-based compensation

The following table outlines the effects of total stock-based compensation including expense related to SARs.

	Three Months Ended   March 31,						Six Months Ended   March 31,
	2015			2014			2015			2014
	(In thousands)
Stock-based compensation
Cost of sales	$	47		$	54		$	98		$	104
Research and development	729			776			1,496			1,425
Selling, general and administrative	1,193			1,190			2,427			2,139
Total stock-based compensation	1,969			2,020			4,021			3,668
Tax effect on stock-based compensation	(412		)	(386		)	(832		)	(688		)
Net effect on net income	$	1,557		$	1,634		$	3,189		$	2,980
Compensation related to SARs included in total stock-based compensation	$	705		$	465		$	1,231		$	622

Weighted average estimated fair values of option grants and rights and weighted average assumptions used in calculating values

The weighted average estimated fair values of stock option grants and rights granted under the ESPP, as well as the weighted average assumptions used in calculating these values during the three and six month periods ended March 31, 2015 and 2014 were based on estimates at the date of grant as follows:

	Three Months Ended   March 31,						Six Months Ended   March 31,
	2015			2014			2015			2014
Options
Weighted-average fair value of grants	$	4.41		$	5.12		$	4.11		$	4.69
Expected term in years	4.27			4.42			4.27			4.42
Estimated volatility	36		%	52		%	38		%	51		%
Risk-free interest rate	1.21		%	1.18		%	1.25		%	1.04		%
Dividend yield	1.56		%	—		%	1.66		%	—		%
ESPP
Weighted-average fair value of grants	$	—		$	2.66		$	—		$	2.66
Expected term in years	—			0.49			—			0.49
Estimated volatility	—		%	27		%	—		%	27		%
Risk-free interest rate	—		%	0.41		%	—		%	0.41		%
Dividend yield	—		%	—		%	—		%	—		%

Summary of stock option activity and related information

A summary of the Company’s stock option activity and related information for the six months ended March 31, 2015 follows (number of shares and aggregate intrinsic value are presented in thousands):

	Number of Shares		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term in Years	Aggregate Intrinsic Value
Outstanding at September 30, 2014	4,240		$	8.10
Granted	85		$	14.83
Exercised	(733	)	$	7.53		$	6,456
Cancelled/Expired	(36	)	$	10.07
Outstanding at March 31, 2015	3,556		$	8.35	3.48	$	33,906
Exercisable at March 31, 2015	2,473		$	7.39	2.85	$	25,963
Vested and expected to vest after March 31, 2015	3,515		$	8.32	3.46	$	33,626

Schedule of RSU activity and related information

A summary of the Company’s RSU activity and related information for the six months ended March 31, 2015 under the 2007 Plan follows (number of shares and aggregate intrinsic value are presented in thousands):

	Number of Shares		Weighted-Average Grant Date Fair Value		Aggregate Intrinsic Value
Outstanding at September 30, 2014	262		$	9.91
Granted	229		$	13.55
Vested	(107	)	$	9.28	$	1,486
Forfeited	(3	)	$	13.12
Outstanding at March 31, 2015	381		$	12.25	$	6,815

Summary of SAR activity and related information

A summary of the Company’s SAR activity and related information for the six months ended March 31, 2015 under the 2007 Plan follows (number of shares and aggregate intrinsic value are presented in thousands):

	Number of Shares		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term in Years	Aggregate Intrinsic Value
Outstanding at September 30, 2014	747		$	10.96
Granted	682		$	13.55
Exercised	(34	)	$	10.96		$	177
Cancelled/Expired	(24	)	$	12.13
Outstanding at March 31, 2015	1,371		$	12.23	6.09	$	7,766
Exercisable at March 31, 2015	211		$	10.96	5.61	$	1,460