Stock-Based Compensation (Tables)

6 Months Ended

Mar. 31, 2017

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

Schedule of Stock-Based Compensation Expense

Stock-based compensation expense is included in the consolidated results of operations as follows (in thousands):

	Three months ended March 31,						Six months ended March 31,
	2017			2016			2017			2016
Cost of sales	$	54		$	51		$	116		$	105
Sales and marketing	345			227			685			426
Research and development	155			147			337			295
General and administrative	601			478			1,190			888
Stock-based compensation before income taxes	1,155			903			2,328			1,714
Income tax benefit	(382		)	(293		)	(757		)	(550		)
Stock-based compensation after income taxes	$	773		$	610		$	1,571		$	1,164

Schedule of Stock Option Activity

The following table summarizes our stock option activity (in thousands, except per common share amounts):

	Options Outstanding		Weighted Average Exercised Price	Weighted Average Contractual Term (in years)	Aggregate Intrinsic Value (1)
Balance at September 30, 2016	3,963		$10.36
Granted	598		12.87
Exercised	(305	)	10.64
Forfeited / Canceled	(223	)	13.30
Balance at March 31, 2017	4,033		$10.55	4.7	$	7,283
Exercisable at March 31, 2017	2,676		$10.19	3.9	$	5,459

(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $11.90 as of March 31, 2017, which would have been received by the option holders had all option holders exercised their options as of that date. The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price.

Schedule of Valuation Assumptions

The table below shows the weighted average fair value, which was determined based upon the fair value of each option on the grant date utilizing the Black-Scholes option-pricing model and the related assumptions:

	Six months ended March 31,
	2017	2016
Weighted average per option grant date fair value	$4.64	$3.92
Assumptions used for option grants:
Risk free interest rate	1.46% - 1.96%	1.61% - 1.85%
Expected term	6.00 years	6.00 years
Expected volatility	33% - 34%	32%
Weighted average volatility	34%	32%
Expected dividend yield	0	0

Schedule of Nonvested Restricted Stock Units

A summary of our non-vested restricted stock units as of March 31, 2017 and changes during the six months then ended is presented below (in thousands, except per common share amounts):

	Number of Awards		Weighted Average Grant Date Fair Value
Nonvested at September 30, 2016	505		$	9.67
Granted	283		$	12.78
Vested	(178	)	$	9.31
Canceled	(3	)	$	10.89
Nonvested at March 31, 2017	607		$	11.22