Stock-Based Compensation (Tables)

9 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Expense

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

	Three months ended June 30,				Nine months ended June 30,
	2020		2019		2020		2019
Cost of sales	$	80	$	55	$	222	$	135
Sales and marketing	609		453		1,669		1,272
Research and development	283		268		908		737
General and administrative	910		697		2,524		2,036
Stock-based compensation before income taxes	1,882		1,473		5,323		4,180
Income tax benefit	(399)		(306)		(1,111)		(863)
Stock-based compensation after income taxes	$	1,483	$	1,167	$	4,212	$	3,317

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	776	16.63
Exercised	(500)	10.12
Forfeited / Canceled	(138)	13.15
Balance at June 30, 2020	3,486	$12.15	4.2	$	3,111
Exercisable at June 30, 2020	2,073	$10.69	3.0	$	2,787

(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $11.65 as of June 30, 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:

	Nine months ended June 30,
	2020	2019
Weighted average per option grant date fair value	$6.18	$4.37
Assumptions used for option grants:
Risk free interest rate	0.44% - 1.73%	2.3% - 2.93%
Expected term	6.00 years	6.00 years
Expected volatility	36% - 42%	33% - 34%
Weighted average volatility	36%	33%
Expected dividend yield	—	—

Schedule of Nonvested Restricted Stock Units

The following table presents a summary of our non-vested restricted stock units as of June 30, 2020 and changes during the nine 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	504	$	14.88
Vested	(297)	$	11.66
Canceled	(98)	$	12.41
Nonvested at June 30, 2020	997	$	13.20