Stock-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2022

Share-based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Expense

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

	Year ended September 30,
	2022		2021		2020
Cost of sales	$	466	$	371	$	291
Sales and marketing	2,503		2,069		2,318
Research and development	1,236		1,032		1,197
General and administrative	4,373		4,663		3,431
Stock-based compensation before income taxes	8,578		8,135		7,237
Income tax benefit	(1,819)		(1,755)		(1,523)
Stock-based compensation after income taxes	$	6,759	$	6,380	$	5,714

Schedule of Stock Option Activity

Below is a summary of our stock options as of September 30, 2022 and changes during the twelve months then ended (in thousands, except per common share amounts):

	Options Outstanding	Weighted Average Exercise Price	Weighted Average Contractual Term (in years)	Aggregate Intrinsic Value (1)
Balance at September 30, 2021	2,952	$13.20
Granted	575	22.52
Exercised	(1,532)	14.75
Forfeited / Canceled	(205)	17.86
Balance on June 30, 2022	1,790	$17.29	4.7	$	29,095
Exercisable at June30, 2022	846,530	$14.26	3.6	$	16,325

(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $33.54 as of September 30, 2022, which would have been received by the option holders had all option holders exercised their options as of that date.

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:

	Year ended September 30,
	2022		2021		2020
Weighted average per option grant date fair value	$	10.37	$	6.97	$	6.17
Assumptions used for option grants:
Risk free interest rate	1.25% - 3.00%		0.51% - 1.035%		0.37% - 1.73%
Expected term	6.00 years		6.00 years		6.00 years
Expected volatility	45% - 46%		44% - 46%		36% - 44%
Weighted average volatility	46%		45%		36%
Expected dividend yield	0%		0%		0%

Schedule of Weighted Average Exercise Price Range and Remaining Contractual Life

As of September 30, 2022, the weighted average exercise price and remaining life of the stock options were (in thousands, except remaining life and exercise price):

Options Outstanding					Options Exercisable
Range of Exercise Prices	Options Outstanding	Weighted Average Remaining Contractual Life (In Years)	Weighted Average Exercise Price		Number of Shares Vested	Weighted Average Exercise Price
$7.40 - $11.87	385	2.94	$	11.11	355	$	11.10
$12.48 - $16.75	386	4.33	$	15.19	234	$	14.79
$17.10 - $17.94	425	4.49	$	17.61	235	$	17.69
$18.20 - $21.53	321	6.17	$	20.78	11	$	19.95
$23.46 - $24.18	227	6.15	$	23.60	—	$	—
$25.15 - $25.15	30	5.27	$	25.15	12	$	25.15
$33.53 - $33.53	16	6.85	$	33.53	—	$	—
$7.40 - $33.53	1,790	4.67	$	17.29	847	$	14.26

Schedule of Nonvested Restricted Stock Units

The following table presents a summary of our non-vested restricted stock units as of September 30, 2022 and changes during the twelve months then ended (in thousands, except per common share amounts):

	RSUs			PSUs
	Number of Awards	Weighted Average Grant Date Fair Value		Number of Awards	Weighted Average Grant Date Fair Value
Nonvested at September 30, 2021	812	$	15.72	18	$	25.15
Granted	394	$	22.72	12	$	19.78
Vested	(308)	$	15.55	(3)	$	25.15
Canceled	(156)	$	17.46	—	$	—
Nonvested at June 30, 2022	742	$	19.14	27	$	22.69