Other Balance Sheet Information

9 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Other Balance Sheet Information

10. Other Balance Sheet Information

The following is a summary of accounts receivable at June 30, 2022 and September 30, 2021 (in thousands):

	June 30,		September 30,
	2022		2021
Accounts receivable	$	154,600	$	124,195
Less allowance for expected credit losses		(4,326)		(4,318)
Accounts receivable, net	$	150,274	$	119,877

The following is a summary of inventories at June 30, 2022 and September 30, 2021 (in thousands):

	June 30,		September 30,
	2022		2021
Inventories
Raw materials and purchased parts	$	35,594	$	27,644
Work-in-process		5,855		4,787
Finished goods		39,764		27,967
Total inventories	$	81,213	$	60,398

Reserves for excess and obsolete inventory were $4.1 million and $3.7 million, respectively, at June 30, 2022 and September 30, 2021.

At June 30, 2022 and September 30, 2021, the Company had cumulative capitalized direct costs of $25.5 million and $22.7 million, respectively, associated with the development of software for its internal use. As of June 30, 2022, this balance included $7.5 million associated with software assets that are still in the development stage and not yet placed in service. During the three and nine months ended June 30, 2022, the Company capitalized direct costs of $1.2 million and $2.8 million, respectively, associated with the development of software for its internal use.

The Company establishes reserves for estimated costs of product warranties based on historical information. Product warranty reserves are recorded at the time product revenue is recognized, and retrofit accruals are recorded at the time retrofit programs are established. The Company’s warranty obligation is affected by product failure rates, utilization levels, material usage, service delivery costs incurred in correcting a product failure and supplier warranties on parts delivered to the Company.

The following is a summary of product warranty and retrofit activity on a gross basis for the three and nine months ended June 30, 2022 and 2021 (in thousands):

Activity -Three Months Ended June 30, 2022
Balance						Balance
March 31,						June 30,
2022		Accruals		Costs Incurred		2022
$	2,491	$	663	$	(630)	$	2,524
Activity -Three Months Ended June 30, 2021
Balance						Balance
March 31,						June 30,
2021		Accruals		Costs Incurred		2021
$	2,182	$	858	$	(703)	$	2,337
Activity -Nine Months Ended June 30, 2022
Balance						Balance
September 30,						June 30,
2021		Accruals		Costs Incurred		2022
$	2,330	$	1,875	$	(1,681)	$	2,524
Activity -Nine Months Ended June 30, 2021
Balance						Balance
September 30,						June 30,
2020		Accruals		Costs Incurred		2021
$	2,211	$	1,671	$	(1,545)	$	2,337