Stock-Based Compensation (Tables)

6 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Expense

stock-based compensation expense that is included in the consolidated results of operations (in thousands):

	Three months ended March 31,						Six months ended March 31,
	2020			2019			2020			2019
Cost of sales	$	78		$	25		$	142		$	80
Sales and marketing	629			466			1,060			819
Research and development	331			269			625			469
General and administrative	803			533			1,614			1,339
Stock-based compensation before income taxes	1,841			1,293			3,441			2,707
Income tax benefit	(381		)	(263		)	(713		)	(557		)
Stock-based compensation after income taxes	$	1,460		$	1,030		$	2,728		$	2,150

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, 2019	3,348		$10.85
Granted	704		17.12
Exercised	(462	)	10.23
Forfeited / Canceled	(61	)	11.48
Balance at March 31, 2020	3,529		$12.17	4.3	$	689
Exercisable at March 31, 2020	2,053		$10.65	3.2	$	689

(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $9.54 as of March 31, 2020, 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 following table 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,
	2020	2019
Weighted average per option grant date fair value	$6.34	$4.36
Assumptions used for option grants:
Risk free interest rate	1.47% - 1.73%	2.56% - 2.93%
Expected term	6.00 years	6.00 years
Expected volatility	36%	33% - 34%
Weighted average volatility	36%	33%
Expected dividend yield	0	0

Schedule of Nonvested Restricted Stock Units

The following table presents a summary of our non-vested restricted stock units as of March 31, 2020 and changes during the six months then ended (in thousands, except per common share amounts):

	Number of Awards		Weighted Average Grant Date Fair Value
Nonvested at September 30, 2019	888		$	11.65
Granted	351		$	16.49
Vested	(295	)	$	11.66
Canceled	(58	)	$	11.48
Nonvested at March 31, 2020	886		$	13.57