Income Taxes (Tables)

12 Months Ended

Sep. 30, 2018

Schedule of Income Taxes from Continuing Operations

Income taxes from continuing operations in the accompanying consolidated statements of operations for the years ended September 30 are as follows (in thousands):

	2018			2017			2016
Current (benefit) provision:
U.S. Federal	$	(890	)	$	2,125		$	6,550
U.S. State		51			(72	)		250
International		41			54			(98	)
Total current (benefit) provision		(798	)		2,107			6,702
Deferred (benefit) provision:
U.S. Federal		(2,006	)		1,085			169
U.S. State		(271	)		(85	)		(43	)
International		—			—			135
Total deferred (benefit) provision		(2,277	)		1,000			261
Total (benefit) provision	$	(3,075	)	$	3,107		$	6,963

Schedule of Reconciliation Difference of Income Taxes

The reconciliation of the difference between amounts calculated at the statutory U.S. federal tax rate of 24.5%, 35% and 35% for fiscal 2018, 2017 and 2016, respectively, and the Company’s effective tax rate from continuing operations is as follows (in thousands):

	2018			2017			2016
Amount at statutory U.S. federal income tax rate	$	(1,845	)	$	2,461		$	5,932
Change because of the following items:
State income taxes, net of federal benefit		(724	)		(13	)		142
Stock-based compensation		(2,063	)		330			(607	)
Valuation allowance change		960			665			(2,500	)
Tax reserve change		158			(52	)		258
Federal manufacturing deduction		—			(313	)		(280	)
U.S. Federal and foreign research and development credits		(1,710	)		(706	)		(571	)
Gain on strategic investment and corporate subsidiary		—			—			2,630
Foreign rate differential		371			948			622
Acquisition-related transaction costs		—			—			768
Contingent consideration expense (gain)		165			(45	)		522
Unrealized foreign currency exchange (gain) loss on contingent consideration obligation		(23	)		170			—
Federal and state rate change		1,582			—			—
Other		54			(338	)		47
Income tax (benefit) provision	$	(3,075	)	$	3,107		$	6,963

Schedule of Deferred Income Taxes

The components of deferred income taxes consisted of the following as of September 30 and result from differences in the recognition of transactions for income tax and financial reporting purposes (in thousands):

	2018			2017
Depreciable assets	$	(1,019	)	$	(3,335	)
Accruals and reserves		1,308			1,123
Stock-based compensation		1,798			3,370
Impaired strategic investments		1,687			2,701
NOL carryforwards		4,637			3,627
U.S. Federal and state R&D credits		1,896			242
Other		538			810
Valuation allowance		(4,541	)		(4,511	)
Total deferred tax assets	$	6,304		$	4,027

Summary of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands):

	2018			2017			2016
Beginning of fiscal year	$	1,481		$	1,508		$	1,248
Increases in tax positions for prior years		61			8			77
Decreases in tax positions for prior years		—			(35	)		(21	)
Increases in tax positions for current year		735			216			365
Settlements with taxing authorities		(613	)		—			—
Lapse of the statute of limitations		(105	)		(216	)		(161	)
End of fiscal year	$	1,559		$	1,481		$	1,508