Stock Based Compensation (Tables)

6 Months Ended

Mar. 31, 2013

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

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

The following table outlines the effects of total stock-based compensation.

	Three Months Ended March 31,				Six Months Ended March 31,
	2013		2012		2013		2012
	(In thousands)
Stock-based compensation
Cost of sales	$	44	$	33	$	87	$	66
Research and development	577		343		1,099		658
Selling, general and administrative	848		886		1,723		1,723
Total stock-based compensation	1,469		1,262		2,909		2,447
Tax effect on stock-based compensation	—		—		—		—
Net effect on net income	$	1,469	$	1,262	$	2,909	$	2,447

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value

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, 2013 and 2012 were based on estimates at the date of grant as follows:

	Three Months Ended March 31,						Six Months Ended March 31,
	2013			2012			2013			2012
Options
Weighted-average fair value of grants	$	4.27		$	4.79		$	4.31		$	4.49
Expected term in years	4.45			4.37			4.45			4.37
Estimated volatility	58		%	60		%	59		%	60		%
Risk-free interest rate	0.61		%	0.61		%	0.53		%	0.68		%
Dividend yield	—		%	—		%	—		%	—		%
ESPP
Weighted-average fair value of grants	$	2.30		$	2.98		$	2.30		$	2.98
Expected term in years	0.49			0.50			0.49			0.50
Estimated volatility	32		%	52		%	32		%	52		%
Risk-free interest rate	0.11		%	0.07		%	0.11		%	0.07		%
Dividend yield	—		%	—		%	—		%	—		%

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable

A summary of the Company’s stock option activity and related information for the six months ended March 31, 2013 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, 2012	5,477		$	6.81
Granted	1,000		$	9.14
Exercised	(275	)	$	4.79		$	1,175
Cancelled/Expired	(40	)	$	9.56
Outstanding at March 31, 2013	6,162		$	7.26	4.43	$	13,359
Exercisable at March 31, 2013	3,389		$	5.82	3.28	$	11,854
Vested and expected to vest after March 31, 2013	5,977		$	7.19	4.38	$	13,318

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

A summary of the Company’s RSU activity and related information for the six months ended March 31, 2013 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, 2012	323		$	8.41
Granted	121		$	9.14
Vested	(168	)	$	7.90	$	1,572
Forfeited	—		$	—
Outstanding at March 31, 2013	276		$	9.05	$	2,528