Stock-Based Compensation (Tables)

9 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [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 June 30,						Nine months ended June 30,
	2019			2018			2019			2018
Cost of sales	$	55		$	49		$	135		$	145
Sales and marketing	453			406			1,272			1,131
Research and development	268			168			737			343
General and administrative	697			597			2,036			1,979
Stock-based compensation before income taxes	1,473			1,220			4,180			3,598
Income tax benefit	(306		)	(249		)	(863		)	(747		)
Stock-based compensation after income taxes	$	1,167		$	971		$	3,317		$	2,851

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, 2018	3,526		$10.49
Granted	606		11.64
Exercised	(448	)	9.04
Forfeited / Canceled	(346	)	12.52
Balance at June 30, 2019	3,338		$10.68	4.1	$	6,983
Exercisable at June 30, 2019	2,226		$10.34	3.3	$	5,418

(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $12.68 as of June 30, 2019, 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:

	Nine months ended June 30,
	2019	2018
Weighted average per option grant date fair value	$4.37	$3.76
Assumptions used for option grants:
Risk free interest rate	2.3% - 2.93%	2.12% - 2.88%
Expected term	6.00 years	6.00 years
Expected volatility	33% - 34%	33% - 34%
Weighted average volatility	33%	31%
Expected dividend yield	0	0

Schedule of Nonvested Restricted Stock Units

A summary of our non-vested restricted stock units as of June 30, 2019 and changes during the nine 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, 2018	674		$	11.05
Granted	547		$	11.62
Vested	(250	)	$	10.42
Canceled	(131	)	$	12.20
Nonvested at June 30, 2019	840		$	11.43