$ 254,203

$ 226,893

$ 181,340

Cost of sales:

Amortization

2,963

2,871

1,444

Total cost of sales

135,168

117,839

94,107

General and administrative

119,035

109,054

87,233

Operating expenses:

Sales and marketing

45,801

44,517

33,955

Research and development

37,564

33,178

28,566

25,685

28,276

13,331

Restructuring charge

(87)

301

2,515

Total operating expenses

108,963

106,272

78,367

Income before income taxes

10,072

2,782

8,866

Other income, net:

Interest income

733

445

656

Interest expense

(102)

(25)

(48)

Other income, net

442

Total other income, net

1,073

468

684

11,145

3,250

9,550

Income tax provision

1,187

1,619

147

Diluted net income per common share:

$ 9,958

$ 1,631

$ 9,403

Net income per common share:

Basic

$ 0.36

$ 0.06

$ 0.36

$ 0.35

$ 0.06

$ 0.35

Weighted average common shares:

Basic (shares)

27,905

27,083

26,432

Diluted (shares)

28,554

27,652

27,099

Product

Revenue:

$ 224,530

$ 201,737

$ 169,425

Cost of sales:

118,855

104,639

87,512

Service

Revenue:

29,673

25,156

11,915

Cost of sales:

Statement of Comprehensive Income [Abstract]

$ 13,350

$ 10,329

$ 5,151

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

^[1]

Sep. 30, 2017

^[1]

Other comprehensive (loss) income, net of tax:

$ 9,958

$ 1,631

$ 9,403

Change in net unrealized gain (loss) on investments

(2,003)

(865)

2,041

(31)

(14)

Less income tax (expense) benefit

(5)

Reclassification of realized loss on investments included in net income (1)

^[2]

Less income tax benefit (2)

(8)

^[3]

Other comprehensive (loss) income, net of tax

(1,989)

(867)

2,032

Comprehensive income

$ 7,969

$ 764

$ 11,435

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.
[2]	Recorded in Other income, net in our Consolidated Statements of Operations.
[3]	Recorded in Income tax provision in our Consolidated Statements of Operations.

Consolidated Balance Sheets - USD ($)
$ in Thousands

Sep. 30, 2019

Sep. 30, 2018

Current assets:

Cash and cash equivalents

$ 92,792

$ 58,014

^[1]

Marketable securities

4,736

^[1]

56,417

49,819

^[1]

39,764

41,644

^[1]

Other current assets

3,574

2,613

^[1]

5,220

^[1]

Total current assets

192,547

162,046

^[1]

Identifiable intangible assets, net

13,857

8,354

^[1]

30,667

39,320

^[1]

153,422

154,535

^[1]

Contingent consideration on acquired businesses

7,330

6,600

^[1]

Other non-current assets

875

1,291

^[1]

Total assets

398,698

372,146

^[1]

Current liabilities:

Accounts payable

21,183

12,911

^[1]

Accrued compensation

8,733

8,190

^[1]

Unearned revenue

5,025

3,177

^[1]

5,407

5,890

^[1]

Other current liabilities

4,110

5,405

^[1]

Total current liabilities

44,458

35,573

^[1]

Income taxes payable

1,192

851

^[1]

Deferred tax liabilities

261

334

^[1]

Contingent consideration on acquired businesses

4,175

^[1]

Commitments and Contingencies (see Notes 16 & 17)

3,809

720

^[1]

Total liabilities

49,720

41,653

^[1]

Stockholders’ equity:

Preferred stock, $.01 par value; 2,000,000 shares authorized; none issued and outstanding

^[1]

Common stock, $.01 par value; 60,000,000 shares authorized; 34,608,003 and 33,812,838 shares issued

346

338

^[1]

Additional paid-in capital

266,567

255,936

^[1]

Accumulated other comprehensive loss

161,919

151,961

^[1]

(25,515)

(23,526)

^[1]

Treasury stock, at cost, 6,367,428 and 6,385,336 shares

(54,339)

(54,216)

^[1]

Total stockholders’ equity

348,978

330,493

^[1]

Total liabilities and stockholders’ equity

$ 398,698

$ 372,146

^[1]

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Sep. 30, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value (USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	34,608,003	33,812,838
Treasury stock, shares	6,367,428	6,385,336

Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2017

Operating activities:

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

$ 9,958

$ 1,631

^[1]

$ 9,403

^[1]

Depreciation of property, equipment and improvements

4,578

3,349

^[1]

2,968

^[1]

Amortization of identifiable intangible assets

8,818

9,435

^[1]

2,597

^[1]

Stock-based compensation

5,655

4,854

^[1]

4,659

^[1]

Excess tax benefits from stock-based compensation

^[1]

(326)

^[1]

Deferred income tax benefit

(799)

(376)

^[1]

(2,086)

^[1]

(Gain) loss on sale of property, equipment and improvements

(4,392)

(622)

^[1]

Provision for bad debt and product returns

1,190

1,377

^[1]

(4,364)

^[1]

635

1,120

^[1]

361

^[1]

Provision for inventory obsolescence

1,874

2,056

^[1]

1,850

^[1]

Other, net

(156)

368

^[1]

2,481

^[1]

Changes in operating assets and liabilities (net of acquisitions):

Accounts receivable

(6,589)

(16,004)

^[1]

833

^[1]

Net cash provided by (used in) operating activities

(1,062)

(11,344)

^[1]

(4,904)

^[1]

Other assets

(866)

(1,412)

^[1]

562

^[1]

Income taxes

(103)

697

^[1]

(3)

^[1]

Accounts payable

8,232

2,728

^[1]

(3,536)

^[1]

Accrued expenses

1,991

(635)

^[1]

(8,045)

^[1]

28,964

(2,778)

^[1]

2,475

^[1]

Investing activities:

Purchase of marketable securities

^[1]

(61,964)

^[1]

Proceeds from maturities of marketable securities

4,750

32,032

^[1]

87,105

^[1]

Proceeds from sale of business

2,000

^[1]

3,000

^[1]

Acquisition of businesses, net of cash acquired

(56,258)

^[1]

(30,111)

^[1]

Proceeds from sale of property and equipment

10,096

731

^[1]

Purchase of property, equipment, improvements and certain other intangible assets

(9,335)

(1,842)

^[1]

(1,773)

^[1]

Net cash provided by (used in) investing activities

5,511

(23,337)

^[1]

(3,743)

^[1]

Financing activities:

Acquisition earn-out payments

(3,748)

^[1]

(518)

^[1]

Excess tax benefits from stock-based compensation

^[1]

326

^[1]

Proceeds from stock option plan transactions

4,874

5,460

^[1]

3,502

^[1]

Proceeds from employee stock purchase plan transactions

1,058

1,115

^[1]

685

^[1]

Net cash provided by financing activities

(1,071)

(748)

^[1]

(938)

^[1]

1,113

5,827

^[1]

3,057

^[1]

Effect of exchange rate changes on cash and cash equivalents

(810)

^[1]

706

^[1]

Net increase (decrease) in cash and cash equivalents

34,778

(20,208)

^[1]

2,495

^[1]

Cash and cash equivalents, beginning of period

^[1]

58,014

78,222

75,727

Cash and cash equivalents, end of period

92,792

58,014

^[1]

78,222

^[1]

Supplemental disclosures of cash flow information:

Interest paid

^[1]

Income taxes paid, net

2,048

1,235

^[1]

2,129

^[1]

Supplemental schedule of non-cash investing and financing activities:

Accrual for capitalized intangible asset

(78)

^[1]

(36)

^[1]

Transfer of inventory to property, equipment and improvements

(1,064)

(2,159)

^[1]

(421)

^[1]

$ 0

$ (2,300)

^[1]

$ (1,310)

^[1]

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Consolidated Statements of Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands

Total

Common Stock

Treasury Stock

Additional Paid-in Capital

Retained Earnings

Accumulated Other Comprehensive Loss

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Cumulative-effect adjustment from adoption of new accounting policy | ASU 2014-09

$ (152)

^[1]

Beginning balance at Sep. 30, 2016

300,029

$ 325

$ (54,209)

$ 237,492

141,112

^[1]

$ (24,691)

Beginning balance (in shares) at Sep. 30, 2016

32,471

6,431

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Other comprehensive income (loss)

^[1]

9,403

Net income | ASU 2014-09

9,403

2,032

^[1]

2,032

Employee stock purchase issuances (in shares)

(72)

Employee stock purchase issuances

685

$ 614

Repurchase of common stock (in shares)

Issuance of stock under stock award plans (in shares)

(938)

$ (938)

537

Issuance of stock under stock award plans

3,502

$ 5

3,497

Tax impact from equity awards

(191)

Stock-based compensation expense

4,659

Ending balance (in shares) at Sep. 30, 2017

33,008

6,437

Ending balance at Sep. 30, 2017

319,029

$ 330

$ (54,533)

245,528

150,363

^[1]

(22,659)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Cumulative-effect adjustment from adoption of new accounting policy | ASU 2016-09

(33)

^[1]

Other comprehensive income (loss)

^[1]

1,631

Net income | ASU 2014-09

1,631

(867)

^[1]

(867)

Employee stock purchase issuances (in shares)

(126)

Employee stock purchase issuances

1,115

$ 1,065

Repurchase of common stock (in shares)

Issuance of stock under stock award plans (in shares)

(748)

$ (748)

805

Issuance of stock under stock award plans

5,460

$ 8

5,452

Stock-based compensation expense

4,854

Ending balance (in shares) at Sep. 30, 2018

33,813

6,385

Ending balance at Sep. 30, 2018

330,493

^[1]

$ 338

$ (54,216)

255,936

151,961

^[1]

(23,526)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Other comprehensive income (loss)

9,958

^[1]

(1,989)

Employee stock purchase issuances (in shares)

(111)

Employee stock purchase issuances

1,058

$ 948

110

Repurchase of common stock (in shares)

Issuance of stock under stock award plans (in shares)

(1,071)

$ (1,071)

795

Issuance of stock under stock award plans

4,874

$ 8

4,866

Stock-based compensation expense

5,655

Ending balance (in shares) at Sep. 30, 2019

34,608

6,367

Ending balance at Sep. 30, 2019

$ 348,978

$ 346

$ (54,339)

$ 266,567

$ 161,919

^[1]

$ (25,515)

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2019

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business Description

We are a leading global provider of business and mission-critical and IoT connectivity products, services and solutions. We help our customers create next-generation connected products to deploy, monitor and manage critical communications infrastructures and compliance standards in demanding environments with high levels of security and reliability. We have two reportable operating segments: (i) IoT Products & Services; and (ii) IoT Solutions.

Principles of Consolidation

The consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications

The subcategories within total revenue and total cost of sales were redefined in 2019 into “Product” and “Service”. Prior year hardware product and services and solutions amounts have been reclassified to conform to our fiscal 2019 presentation. There was no change to total revenue and total cost of sales for fiscal 2018 and 2017 except for the adoption of ASU 2014-09, Revenue from Contracts with Customers (“Topic 606”) discussed later in this note.

Accounting Estimates

The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ significantly from those estimates.

Cash Equivalents

Cash equivalents consist of money market accounts and other highly liquid investments purchased with an original maturity of three months or less. The carrying amounts approximate fair value due to the short maturities of these investments. We maintain our cash and cash equivalents in bank accounts which may exceed federally insured limits at times. We have not experienced any losses in these accounts.

Marketable Securities

Marketable securities may consist of certificates of deposit, commercial paper, corporate bonds and government municipal bonds. All marketable securities are accounted for as available-for-sale and are carried at fair value on our Consolidated Balance Sheets with unrealized gains and losses recorded in accumulated other comprehensive loss within stockholders’ equity. In order to estimate the fair value for each security in our investment portfolio, we obtain quoted market prices and trading activity for each security when available. We obtain relevant information from our investment advisor and, if warranted, may review the financial solvency of certain security issuers.

We regularly monitor and evaluate the value of our marketable securities. When assessing marketable securities for other-than-temporary declines in value, we consider several factors. These factors include: how significant the decline in value is as a percentage of the original cost, how long the market value of the investment has been less than its original cost, the underlying factors contributing to a decline in the prices of securities in a single asset class, the performance of the issuer’s stock price in relation to the stock price of its competitors within the industry, expected market volatility, analyst recommendations, the views of external investment managers, any news or financial information that has been released specific to the investee and the outlook for the overall industry in which the issuer operates. If events and circumstances indicate that a decline in the value of a security has occurred and is other-than-temporary, we would record a charge to other income, net.

Accounts Receivable

Accounts receivable are stated at the amount we expect to collect. This amount is net of an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments and a reserve for future returns and pricing adjustments. The following factors are considered when determining the collectability of specific customer accounts: customer creditworthiness, past transaction history with the customer, and changes in customer payment terms or practices. In addition, overall historical collection experience, current economic industry trends, and a review of the current status of trade

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

accounts receivable are considered when determining the required allowance for doubtful accounts. Based on our assessment, we provide for estimated uncollectible amounts through a charge to earnings and a credit to our allowance for doubtful accounts. Balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and a credit to accounts receivable. Estimated reserves for future returns and pricing adjustments are established by us based on an analysis of historical patterns of returns and price adjustments as well as an analysis of authorized returns compared to received returns and distribution sales for the current period. Estimated reserves for future returns and price adjustments are charged against revenue in the same period as the corresponding sales are recorded.

Inventories

Inventories are valued at the lower of cost or net realizable value using the first-in, first-out (FIFO) method. Appropriate consideration is given to deterioration, obsolescence and other factors in evaluating net realizable value.

Property, Equipment and Improvements, Net

Property, equipment and improvements are carried at cost, net of accumulated depreciation. Depreciation is provided by charges to operations using the straight-line method over the estimated asset useful lives. Furniture and fixtures, purchased software and other equipment are depreciated over a period of three to seven years. Building improvements and buildings are depreciated over ten and thirty-nine years, respectively. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life of the asset. Long-lived assets to be held and used, such as property, equipment and improvements, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Expenditures for maintenance and repairs are charged to operations as incurred, while major renewals and betterments are capitalized. The assets and related accumulated depreciation accounts are adjusted for asset retirements and disposals with the resulting gain or loss included in operations.

Identifiable Intangible Assets

Purchased proven technology, license agreements, covenants not to compete and other identifiable intangible assets are recorded at fair value when acquired in a business acquisition, or at cost when not purchased in a business acquisition. All other identifiable intangible assets are amortized on either a straight-line basis over their estimated useful lives of three to twelve years or based on the pattern in which the asset is consumed. Useful lives for identifiable intangible assets are estimated at the time of acquisition based on the periods of time from which we expect to derive benefits from the identifiable intangible assets. Amortization of purchased and core technology is included in cost of sales in the Consolidated Statements of Operations. Amortization of all other acquired identifiable intangible assets is charged to operating expenses as a component of general and administrative expense.

Identifiable intangible assets are reviewed for impairment whenever events or circumstances indicate that undiscounted expected future cash flows are not sufficient to recover the carrying value amount. We measure impairment loss by utilizing a cash flow valuation technique using the income approach. Impairment losses, if any, would be recorded in the period the impairment is identified. There were no impairments identified in fiscal 2019, 2018 or 2017.

Goodwill

Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is quantitatively tested for impairment on an annual basis as of June 30, or more frequently if events or circumstances occur which could indicate impairment.

We have two reportable operating segments, our IoT Solutions segment and our IoT Products & Services segment (see Note 4 to the consolidated financial statements). As a result, we concluded that the IoT Solutions segment and the IoT Products & Services segment constitute separate reporting units for purposes of the ASC 350-20-35 "Goodwill Measurement of Impairment" assessment and both units were tested individually for impairment.

For our quantitative goodwill impairment tests, we determine the estimated fair value of each reporting unit and compare it to the carrying value of the reporting unit. If the carrying amount of a reporting unit is higher than its estimated fair value, an

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

impairment loss must be recognized for the excess. Fair values for both reporting units were each estimated on a standalone basis using a weighted combination of the income approach and market approach.

The income approach indicates the fair value of a business based on the value of the cash flows the business or asset can be expected to generate in the future. A commonly used variation of the income approach used to value a business is the discounted cash flow (“DCF”) method. The DCF method is a valuation technique in which the value of a business is estimated on the earnings capacity, or available cash flow, of that business. Earnings capacity represents the earnings available for distribution to stockholders after consideration of the reinvestment required for future growth. Significant judgment is required to estimate the amount and timing of future cash flows for each reporting unit and the relative risk of achieving those cash flows.

The market approach indicates the fair value of a business or asset based on a comparison of the business or asset to comparable publicly traded companies or assets and transactions in its industry as well as prior company or asset transactions. This approach can be estimated through the guideline company method. This method indicates fair value of a business by comparing it to publicly traded companies in similar lines of business. After identifying and selecting the guideline companies, we make judgments about the comparability of the companies based on size, growth rates, profitability, risk, and return on investment in order to estimate market multiples. These multiples are then applied to the reporting units to estimate a fair value.

Assumptions and estimates to determine fair values are complex and often subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in our business strategy and our internal forecasts. For example, if our future operating results do not meet current forecasts or if we experience a sustained decline in our market capitalization that is determined to be indicative of a reduction in fair value of one or more of our reporting units, we may be required to record future impairment charges for goodwill.

Contingent Consideration

We measure our contingent consideration liabilities recognized in connection with business combinations at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy as defined in ASC 820 "Fair Value Measurement". We used a probability-weighted discounted cash flow approach as a valuation technique to determine the fair value of the contingent consideration on the acquisition date. At each subsequent reporting period, the fair value is re-measured with the change in fair value recognized in general and administrative expense in our Consolidated Statements of Operations. Amounts, if any, paid to the seller in excess of the amount recorded on the acquisition date will be classified as cash flows used in operating activities. Payments to the seller not exceeding the acquisition-date fair value of the contingent consideration will be classified as cash flows used in financing activities.

Warranties

In general, we warrant our hardware products to be free from defects in material and workmanship under normal use and service. The warranty periods generally range from one to five years. We typically have the option to either repair or replace hardware products we deem defective with regard to material or workmanship. Estimated warranty costs are accrued in the period that the related revenue is recognized based upon an estimated average per unit repair or replacement cost applied to the estimated number of units under warranty. These estimates are based upon historical warranty incidents and are evaluated on an ongoing basis to ensure the adequacy of the warranty accrual.

We also warrant our software or firmware incorporated into our products generally for a period of one year and offer to provide a bug fix or software patch within a reasonable period. We have not accrued specifically for this warranty and have not had claims specifically related to software or firmware. We are not responsible for, and do not warrant that, custom software versions, created by OEM customers based upon our software source code, will function in a particular way, will conform to any specifications or are fit for any particular purpose. Further, we do not indemnify these customers from any third-party liability as it relates to or arises from any customization or modifications made by the OEM customer.

Treasury Stock

We record treasury stock at cost. Treasury stock may be acquired from employees for tax withholding purposes related to vesting of restricted stock awards as part of our stock-based compensation program.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Revenue Recognition

We recognize hardware product revenue upon transfer of control of goods or services to customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services.

We determine the amount of revenue to be recognized through application of the following steps:


•	identification of the contract, or contracts with a customer;


•	identification of the performance obligations in the contract;


•	determination of the transaction price;


•	allocation of the transaction price to the performance obligations in the contract; and


•	recognition of revenue when or as we satisfy the performance obligations.

Hardware Product Revenue and SmartSense by Digi^™ Equipment Revenue and Associated Installation Fees

Our hardware product revenue is derived primarily from the sale of wired and wireless hardware products to our distributors and Direct/OEM customers. Product revenue generally is recognized upon shipment of the product to a customer. Sales to authorized domestic distributors and Direct/OEM customers typically are made with certain rights of return and price adjustment provisions. Estimated reserves for future returns and pricing adjustments are established by us based on an analysis of historical patterns of returns and price adjustments as well as an analysis of authorized returns compared to received returns and distribution sales for the current period. Estimated reserves for future returns and price adjustments are charged against revenue in the same period as the corresponding sales are recorded. Material differences between the historical trends used to determine estimated reserves and actual returns and pricing adjustments could result in a material change to our consolidated results of operations or financial position. We have applied consistent methodologies for estimating reserves for future returns and pricing adjustments for all periods presented.

Equipment revenue from SmartSense by Digi^™ within our IoT Solutions segment is recorded as an up-front sale at its stand-alone selling price. This is because the customer could utilize our equipment with other monitoring services or could use our monitoring services with hardware purchased from other vendors. Our installation charges from these sales are recorded when the product is installed.

Subscription and Support Services Revenue

Our SmartSense by Digi^™subscription revenue is recorded on a monthly basis. These subscriptions are generally in a range from one to five years, and may contain an evergreen renewal provision. Generally, our subscription renewal charges per month are the same as the original contract term.

We also derive service revenue from our Digi Remote Manager^®, a platform-as-a-service (“PaaS”) offering, whereby customers pay for services consumed based on the number of devices being managed or monitored. This revenue is recognized over the life of the service term and is included in our IoT Products & Services segment.

Digi Support Services revenues are recognized over the life of the support contract and included in our IoT Products & Services segment. Some of Digi Support Services revenue is for training and this revenue is recognized as the services are performed.

Professional Services Revenue

Professional services revenue is derived from our Digi Wireless Design Services contracts on either on a time-and-materials or a fixed-fee basis. These revenues, which are included in our IoT Products & Services segment are recognized as the services are performed for time-and-materials contracts, or when milestones are achieved and accepted by the customer for fixed-fee contracts.

Contracts with Multiple Performance Obligations

From time to time we have contracts from customers with multiple performance obligations. Our hardware products may be combined with our Digi Remote Manager^® PaaS offering as well as other support services in an individual contract. Our SmartSense by Digi^™revenues typically are derived from contracts with multiple performance obligations. These obligations

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

may include: delivery of monitoring equipment that the customer either purchases out-right or uses while we retain ownership, monitoring services, providing condition alerts of assets being monitored, and recertification of sensor equipment. When we retain ownership of the equipment, we charge an implementation fee to the customer so they can begin using the equipment. In these instances, all revenue derived from the above obligations is recognized over the subscription term of the contract. If the customer purchases the equipment out-right, that portion of the revenue is recognized at the stand-alone selling price at the time the equipment is shipped and all other revenue is recognized over the subscription term of the contract. We have made an accounting policy election to exclude from the measurement of our revenues any sales or similar taxes we collect from customers.

Research and Development

Research and development costs are expensed when incurred. Research and development costs include compensation, allocation of corporate costs, depreciation, utilities, professional services and prototypes. Software and firmware development costs are expensed as incurred until the point that both the technological feasibility and the proven marketability of the product are established. To date, the time period between the establishment of technological feasibility and completion of software development has been short and no significant development costs have been incurred during that period. Accordingly, we have not capitalized any software development costs to date.

Income Taxes

Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Income tax expense is equal to the tax payable for the period and the change during the period in deferred tax assets and liabilities as well as changes in income tax reserves. We maintain valuation allowances unless it is more likely than not that all or a portion of the deferred tax assets will be realized. Changes in valuation allowances from period to period are included in our tax provision in the period of change. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.

Stock-Based Compensation

Stock-based compensation expense represents the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. This cost must be recognized over the period during which an employee is required to provide the service (usually the vesting period).

Foreign Currency Translation

Financial position and results of operations of our international subsidiaries are measured using local currencies as the functional currency, except our Singapore location which uses the U.S. Dollar as its functional currency. Assets and liabilities of these operations are translated at the exchange rates in effect at the end of each reporting period. For our larger international subsidiaries, statements of operations accounts are translated at the daily rate. For all other international subsidiaries, our statements of operations accounts are translated at the weighted average rates of exchange prevailing during each reporting period. Translation adjustments arising from the use of differing currency exchange rates from period to period are included in accumulated other comprehensive loss in stockholders’ equity. Gains and losses on foreign currency exchange transactions, as well as translation gains or losses on transactions denominated in currencies other than an entity’s functional currency, are reflected in the statement of operations. During fiscal 2019, 2018 and 2017 there were net transaction gains of $0.4 million, $0.1 million and $0.1 million, respectively that were recorded in other income, net. We manage our net asset or net liability position for U.S. dollar accounts in our foreign locations to reduce our foreign currency risk. We have not implemented a formal hedging strategy.

Comprehensive Income

Our comprehensive income is comprised of net income, foreign currency translation adjustments and unrealized gains and losses on available-for-sale marketable securities. These items are charged or credited to the accumulated other comprehensive loss account in stockholders’ equity.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Net Income Per Common Share

Basic net income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares of our stock result from common stock options and restricted stock units. We use the treasury stock method to calculate the weighted-average shares used in the diluted earnings per share computation. Under this method the proceeds from exercise of an option, any amount of compensation cost for future service that we have not yet recognized, and the amount of estimated tax benefits that would be recorded in paid-in capital when the option is exercised are assumed to have been used to repurchase shares in the current period.

The following table is a reconciliation of the numerators and denominators in the net income per common share calculations (in thousands, except per common share data):



	Fiscal year ended September 30,
	2019		2018 (as adjusted)*		2017 (as adjusted)*
Numerator:
Net income	$	9,958	$	1,631	$	9,403
Denominator:
Denominator basic net income per common share — weighted average shares outstanding	27,905		27,083		26,432
Effect of dilutive securities:
Stock options and restricted stock units	649		569		667
Denominator diluted net income per common share — adjusted weighted average shares	28,554		27,652		27,099

Net income per common share, basic	$	0.36	$	0.06	$	0.36
Net income per common share, diluted	$	0.35	$	0.06	$	0.35

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Because their effect would be anti-dilutive at period end, certain potentially dilutive shares related to stock options to purchase common shares were excluded in the above computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of our common shares. At September 30, 2019, 2018 and 2017, such excluded stock options were 744,513, 925,063 and 1,142,322, respectively.

Recent Accounting Developments

Adopted

In May 2017, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU provided guidance as to which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The amendments in this update are to be applied prospectively to an award modified on or after the adoption date. This ASU was adopted by us on October 1, 2018 and has not had an impact on our consolidated financial statements.

In January 2017, FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU eliminates the second step in the goodwill impairment test which requires an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying value and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The standard, which should be applied prospectively, is effective for our fiscal year ending September 30, 2021. Early adoption is permitted. This ASU was adopted by us on October 1, 2018 and has not had an impact on our consolidated financial statements.

In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. This ASU provides guidance on eight specific cash flow issues, thereby reducing the diversity in practice in

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

how certain transaction are classified in the statement of cash flows. This ASU was adopted by us on October 1, 2018 and has not had an impact on our consolidated financial statements.

In January 2016, FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU requires equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) to be measured at fair value with changes in fair value to be recognized in net income. This ASU also simplifies the impairment assessment of equity investments without readily determinable fair values. This ASU also has changed the presentation and disclosure requirements for financial instruments. In addition, this ASU has clarified the guidance related to valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. This ASU was adopted by us on October 1, 2018 and has not had an impact on our consolidated financial statements.

In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (“Topic 606”). This ASU requires that revenue is recognized for the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. It also establishes timing associated with recognizing revenues and amortizing costs, associated with contracts. FASB has issued several amendments to ASU 2014-09, including clarifications on disclosure of prior-period performance obligations and remaining performance obligations. The guidance permits two methods of adoption, one of which is to retrospectively adjust results for each prior reporting period presented. We elected to adopt the standard using this method effective October 1, 2018.

We have described how we recognize revenue in the aforementioned revenue recognition policy. Relative to the amortization of costs there are two impacts to our financial statements. First, in instances where we retain ownership of equipment a customer uses, we charge an implementation fee to the customer so they can begin using the equipment. We depreciate this cost of the equipment over its useful life (typically three years). Second, we capitalize and amortize commissions paid to sales personnel or agents on service contracts. If the commissions earned during an accounting period exceed our capitalization threshold, they will be amortized over the calculated average expected life of the pool of contracts closed during that period.

To ease our transition in the adoption of Topic 606, we have elected the following practical expedients outlined in the new accounting guidance:


•	we have not disclosed the remaining transaction price for reporting periods prior to the first quarter of fiscal 2019;


•	for completed contracts that have variable consideration, we will use the as-invoiced amount for all of our time and materials contracts and contracts relating to Digi Remote Manager^® in instances where the contracts do not include free service; and


•	we will expense incremental costs of obtaining a contract when incurred if the amortization period of the asset is one year or less.

As follows, the adoption of the standard related to the new revenue recognition impacted our reported results:



	Fiscal year ended September 30, 2018
(in thousands, except per common share data)	As Reported		Impact of Adoption*			As Adjusted
Revenue	$	228,366	$	(1,473	)	$	226,893
Cost of sales	119,483		(1,644		)	117,839
Gross profit	108,883		171			109,054
Operating expenses	106,561		(289		)	106,272
Operating income	$	2,322	$	460		$	2,782
Net income	$	1,303	$	328		$	1,631
Diluted earnings per share	$	0.05	$	0.01		$	0.06

*The impact of the adoption of ASU 2014-09 solely impacts the results of our IoT Solutions segment.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)



	Fiscal year ended September 30, 2017
(in thousands, except per common share data)	As Reported		Impact of Adoption*			As Adjusted
Revenue	$	181,634	$	(294	)	$	181,340
Cost of sales	94,460		(353		)	94,107
Gross profit	87,174		59			87,233
Operating expenses	78,367		—			78,367
Operating income	$	8,807	$	59		$	8,866
Net income	$	9,366	$	37		$	9,403
Diluted earnings per share	$	0.35	$	—		$	0.35

*The impact of the adoption of ASU 2014-09 solely impacts the results of our IoT Solutions segment.



	September 30, 2018
(in thousands)	As Reported		Impact of Adoption			As Adjusted
Accounts receivable, net	$	50,817	$	(998	)	$	49,819
Property, equipment and improvements, net	$	6,270	$	2,084		$	8,354
Deferred tax assets	$	6,665	$	(65	)	$	6,600
Unearned revenue current	$	2,579	$	598		$	3,177
Other non-current liabilities	$	510	$	210		$	720
Retained earnings	$	151,748	$	213		$	151,961



	September 30, 2017
(in thousands)	As Reported		Impact of Adoption			As Adjusted
Accounts receivable, net	$	28,855	$	—		$	28,855
Property, equipment and improvements, net	$	12,801	$	440		$	13,241
Deferred tax assets	$	9,211	$	67		$	9,278
Unearned revenue current	$	1,343	$	469		$	1,812
Other non-current liabilities	$	654	$	153		$	807
Retained earnings	$	150,478	$	(115	)	$	150,363

We recognized $0.2 million reduction to retained earnings as of September 30, 2016 related to the adoption of the new accounting standards related to revenue recognition. There was no impact to total cash provided by or used in operating, financing or investing on our Consolidated Statements of Cash Flows as a result of our adoption of these new accounting standards.

Not Yet Adopted

In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This ASU replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses. This ASU is effective for us in the first quarter ending December 31, 2020. Entities may early adopt beginning after December 15, 2018. We are evaluating the impact of adopting ASU 2016-13 on our consolidated financial statements.

In February 2016, FASB issued ASU 2016-02, Leases (Topic 842), which provides for comprehensive changes to lease accounting. This ASU requires that a lessee recognize a lease obligation liability and a right-to-use asset for virtually all leases, subsequently amortized over the lease term. We adopted this standard in the first quarter of fiscal 2020, following the modified retrospective application approach. We are substantially complete with our implementation efforts, which have included identification and analysis of our lease portfolio, analysis and evaluation of the new reporting and disclosure requirements of

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

the new guidance, and an evaluation of our lease-related processes and internal controls. The adoption of this standard will result in reflecting a right-of-use asset and lease liability on our consolidated balance sheet in the first quarter of fiscal 2020 of approximately $14.1 million and $17.9 million, respectively. In adopting the new standard, we elected the package of practical expedients permitted under the transition guidance, as well as the practical expedient not to separate non-lease components from lease components. We do not expect this standard to have a significant impact on our consolidated results of operations or consolidated statements of cash flows. We have identified new and updated existing internal controls and processes to support measurement, recognition and disclosure under this new standard. Such changes were not deemed to be material to our overall system of internal controls.

Acquisitions	12 Months Ended
Acquisitions	Sep. 30, 2019
Business Combinations [Abstract]
ACQUISITIONS	ACQUISITIONS Fiscal 2018 Acquisitions Acquisition of Accelerated Concepts, Inc. On January 22, 2018, we purchased all the outstanding stock of Accelerated, a Tampa-based provider of secure, enterprise-grade, cellular (LTE) networking equipment for primary and backup connectivity applications, for cash of $16.4 million (excluding cash acquired of $0.2 million) and future earn-out payments. Purchase accounting related to the acquisition of Accelerated was finalized during the fourth quarter of fiscal 2018. The earn-out payments are scheduled to be paid in two installments and the payment amount, if any, will be calculated based on the revenue performance of Accelerated products. The first installment was based on revenues from January 22, 2018 through January 21, 2019 and the second installment will be based on revenues from January 22, 2019 through January 21, 2020. If certain revenue thresholds are met, the cumulative amount of these earn-outs will be $6.5 million. In April 2019, we paid $3.5 million for the first installment. The fair value of the remaining contingent consideration was $2.5 million at September 30, 2019 (see Note 8 to the consolidated financial statements). For the year ended September 30, 2018, the amounts of revenue and net income included in the Consolidated Statements of Operations from the acquisition date of January 22, 2018 were $22.2 million and $2.8 million, respectively. Costs directly related to the acquisition of $0.3 million incurred in fiscal 2018 have been charged directly to operations and are included in general and administrative expense in our Consolidated Statements of Operations. These acquisition costs include legal, accounting and valuation fees. Acquisition of TempAlert LLC On October 20, 2017, we purchased all the outstanding interests of TempAlert, a Boston-based provider of automated, real-time temperature monitoring and task management solutions for cash of $40.7 million (excluding cash acquired of $0.6 million) and future earn-out payments. Purchase accounting related to the acquisition was finalized during the first quarter of fiscal 2019. The first earn-out payment was scheduled to be paid after December 31, 2018 and the second earn-out payment is scheduled to be paid after December 31, 2019, which is the end of the earn-out periods. No payment was earned for the period ended December 31, 2018. The cumulative amount of the remaining earn-outs for the period ended December 31, 2019, will not exceed $45.0 million. The fair value of the contingent consideration was zero at September 30, 2019 (see Note 8 to the consolidated financial statements). For the year ended September 30, 2018, the amount of revenue included in the Consolidated Statements of Operations from the acquisition date of October 20, 2017 was $17.0 million. Costs directly related to the acquisition of $1.1 million, $1.4 million and $0.4 million incurred in fiscal years 2019, 2018 and 2017, respectively, have been charged directly to operations and are included in general and administrative expense in our Consolidated Statements of Operations. These acquisition costs include legal, accounting, valuation and success fees. Fiscal 2017 Acquisitions Acquisition of SMART Temps^®, LLC On January 9, 2017, we purchased all of the outstanding interests of SMART Temps^®, LLC ("SMART Temps^®"), an Indiana-based provider of real-time temperature management for pharmacies, education, and hospital settings as well as real-time 2. ACQUISITIONS (CONTINUED) temperature management for blood bank, laboratory environments, restaurants, and grocery for cash of $28.8 million (excluding cash acquired of $0.5 million) and future earn-out payments. SMART Temps^® results have been included in our consolidated financial statements within the IoT Solutions segment since the date of acquisition. Purchase accounting related to the acquisition was finalized during fiscal 2017. The earn-out payments were scheduled to be paid after December 31, 2017 which is the end of the earn-out period. The cumulative amount of those earn-out payments could not exceed $7.2 million. The fair value of this contingent consideration was zero at December 31, 2017 and no earn-out was paid (see Note 8 to the consolidated financial statements). Acquisition of FreshTemp^®, LLC On November 1, 2016, we purchased all of the outstanding interests of FreshTemp^®, LLC ("FreshTemp^®"), a Pittsburgh-based provider of temperature monitoring and automated task management solutions for the food industry for cash of $1.7 million and future earn-out payments. FreshTemp^®results have been included in our consolidated financial statements within the IoT Solutions segment since the date of acquisition. Purchase accounting related to the acquisition was finalized during fiscal 2017. The earn-out payments were based on revenue related to certain customer contracts entered into by June 30, 2017. The final calculation date was on June 30, 2018. The cumulative amount of these earn-out payments could not exceed $2.3 million. We made a final payment of $0.2 million during the first quarter of fiscal 2019.

Goodwill and other Identifiable Intangible Assets

12 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET

Identifiable Intangible Assets, Net

Amortizable identifiable intangible assets, net as of September 30, 2019 and 2018 were comprised of the following (in thousands):



	September 30, 2019							September 30, 2018
	Gross carrying amount		Accum. amort.			Net		Gross carrying amount		Accum. amort.			Net
Purchased and core technology	$	57,699	$	(50,986	)	$	6,713	$	58,102	$	(48,693	)	$	9,409
License agreements	102		(74		)	28		102		(46		)	56
Patents and trademarks	14,577		(11,970		)	2,607		15,701		(12,242		)	3,459
Customer relationships	46,315		(25,266		)	21,049		46,605		(21,049		)	25,556
Non-compete agreements	600		(330		)	270		600		(210		)	390
Order backlog	1,800		(1,800		)	—		1,800		(1,350		)	450
Total	$	121,093	$	(90,426	)	$	30,667	$	122,910	$	(83,590	)	$	39,320

Amortization expense is included in our Consolidated Statements of Operations in cost of sales and general and administrative expense. Amortization expense in cost of sales includes amortization for purchased and core technology and certain patents and trademarks.

Amortization expense for fiscal years 2019, 2018 and 2017 was as follows (in thousands):



Fiscal year	Total
2019	$	8,818
2018	$	9,435
2017	$	2,597

3. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET (CONTINUED)

Estimated amortization expense for the next five years is as follows (in thousands):



Fiscal year	Total
2020	$	8,277
2021	$	7,434
2022	$	6,590
2023	$	4,392
2024	$	3,689

Goodwill

The changes in the carrying amount of goodwill by reportable segments are (in thousands):



	Fiscal years ended September 30,
	IoT Products and Services			IoT Solutions			Total
Balance on September 30, 2017	$	98,981		$	33,014		$	131,995
Acquisitions	5,663			17,553			23,216
Foreign currency translation adjustment	(286		)	(390		)	(676		)
Balance on September 30, 2018	$	104,358		$	50,177		$	154,535
Foreign currency translation adjustment	(839		)	(274		)	(1,113		)
Balance at September 30, 2019	$	103,519		$	49,903		$	153,422

No goodwill impairment has been recorded in any period presented.

Segment Information and Major Customers

12 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

SEGMENT INFORMATION AND MAJOR CUSTOMERS

We have two reportable operating segments for purposes of ASC 280-10-50 “Segment Reporting”: (i) IoT Products & Services and (ii) IoT Solutions. This determination was made by considering both qualitative and quantitative information. The qualitative information included, but was not limited to, the following: the nature of the products and services and customers differ between the two segments, the Chief Operating Decision Maker is reviewing both segments’ operating results separately and makes decisions about the allocation of resources, and discrete financial information is available through operating income (loss) for both segments.

IoT Products & Services

Our IoT Products & Services segment is composed of the following communications products and development services:


•	Cellular routers and gateways;


•	Radio frequency ("RF") products which include our Digi XBee^® modules as well as other RF solutions;


•	Embedded products which include Digi Connect^® and Rabbit^® embedded systems on module and single board computers;


•	Network products which include console and serial servers and USB connected products;


•	Digi Wireless Design Services;


•	Digi Remote Manager^®; and


•	Digi Support Services which offers various levels of technical services for development assistance, consulting and training.

4. SEGMENT INFORMATION AND MAJOR CUSTOMERS (CONTINUED)

IoT Solutions

Our IoT Solutions segment offers wireless temperature and other condition-based monitoring services as well as employee task management services. These solutions are focused on these vertical markets: food service, retail, healthcare (primarily pharmacies), transportation/logistics and education. The solutions are marketed as SmartSense by Digi^™. We have formed, expanded and enhanced the IoT Solutions segment through acquisition.

We measure our segment results primarily by reference to revenue and operating income. IoT Solutions revenue includes product, service and subscription revenue. Certain costs incurred at the corporate level are allocated to our segments. These costs include information technology, employee benefits and shared facility services. The information technology and shared facility costs are allocated based on headcount and the employee benefits costs are allocated based on compensation costs.

Summary operating results for each of our segments were as follows (in thousands):



	Fiscal years ended September 30,
	2019			2018 (as adjusted)*			2017 (as adjusted)*
Revenue
IoT Products & Services	$	215,287		$	201,506		$	174,237
IoT Solutions	38,916			25,387			7,103
Total revenue	$	254,203		$	226,893		$	181,340
Operating income (loss)
IoT Products & Services	$	18,674		$	14,923		$	12,804
IoT Solutions	(8,602		)	(12,141		)	(3,938		)
Total operating income	$	10,072		$	2,782		$	8,866
Depreciation and amortization
IoT Products & Services	$	6,102		$	6,040		$	3,575
IoT Solutions	7,294			6,744			1,990
Total depreciation and amortization	$	13,396		$	12,784		$	5,565

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Total expended for property, plant and equipment was as follows (in thousands):



	Fiscal years ended September 30,
	2019		2018		2017
IoT Products & Services	$	8,863	$	1,773	$	1,738
IoT Solutions	472		69		35
Total expended for property, plant and equipment	$	9,335	$	1,842	$	1,773

Total assets for each of our segments were as follows (in thousands):



	As of September 30,
	2019		2018 (as adjusted)*
IoT Products & Services	$	215,651	$	209,574
IoT Solutions	90,255		99,822
Unallocated**	92,792		62,750
Total assets	$	398,698	$	372,146

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

**Unallocated consists of cash and cash equivalents, current marketable securities and long-term marketable securities.

4. SEGMENT INFORMATION AND MAJOR CUSTOMERS (CONTINUED)

Net property, equipment and improvements by geographic location were as follows (in thousands):



	As of September 30,
	2019		2018 (as adjusted)*
United States	$	13,400	$	8,240
International, primarily Europe	457		114
Total net property, equipment and improvements	$	13,857	$	8,354

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Our U.S. export sales represented 28.5%, 30.1% and 37.2% of revenue for the fiscal years ended September 30, 2019, 2018 and 2017. No single customer exceeded 10% of revenue for any of the periods presented. At September 30, 2019, we had one customer, whose accounts receivable balance represented 14.7% of total accounts receivable. At September 30, 2018, we had one customer, whose accounts receivable balance represented 12.2% of total accounts receivable.

Sale of Building (Notes)	12 Months Ended
Sale of Building (Notes)	Sep. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]
SALE OF BUILDING	SALE OF BUILDING On October 2, 2018, we sold our 130,000 square feet corporate headquarters building in Minnetonka, Minnesota to Minnetonka Leased Housing Associates II, LLLP. The sale price was $10.0 million in cash adjusted for certain selling costs and an escrow for the leaseback of the building for four months. At September 30, 2018 the net book value of the land, building and improvements was $5.2 million and listed as assets held for sale on our Consolidated Balance Sheet. As a result, we recorded a $1.1 million tax benefit in the fourth quarter of fiscal 2018 because we were able to use credit loss carryforwards which previously had a valuation allowance. As a result of this sale, we recorded a gain of $4.4 million ($3.4 million net of tax) in the first quarter of fiscal 2019, which is recorded in general and administrative expense. During the fiscal year ended September 30, 2019, we paid $5.8 million for leasehold improvements to build out our new headquarters space. These improvements are being depreciated over 10 years, which is the estimated useful life of the improvements.

Selected Balance Sheet Data

12 Months Ended

Sep. 30, 2019

Selected Balance Sheet Data [Abstract]

SELECTED BALANCE SHEET DATA

SELECTED BALANCE SHEET DATA (in thousands)



	As of September 30,
	2019		2018 (as adjusted)*
Accounts receivable, net:
Accounts receivable	$	60,062	$	53,164
Less allowance for doubtful accounts	968		785
Less reserve for future returns and pricing adjustments	2,677		2,560
Total accounts receivable, net	$	56,417	$	49,819

Inventories:
Raw materials	$	12,308	$	22,047
Work in process	565		525
Finished goods	26,891		19,072
Total inventories	$	39,764	$	41,644

Property, equipment and improvements, net:
Land	$	570	$	570
Buildings	2,338		2,338
Improvements	7,646		1,698
Equipment	17,440		15,803
Purchased software	4,030		3,966
Furniture and fixtures	2,963		3,350
Subscriber assets	3,750		2,673
Total property, equipment and improvements, gross	38,737		30,398
Less accumulated depreciation and amortization	24,880		22,044
Total property, equipment and improvements, net	$	13,857	$	8,354

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

At September 30, 2018 there was $5.2 million of assets held for sale on our Consolidated Balance Sheet, which consisted of land, buildings and improvements related to our former Minnetonka, Minnesota headquarters. On October 2, 2018, we sold this facility to Minnetonka Leased Housing Associates II, LLLP (see Note 5 to our consolidated financial statements).

Marketable Securities

12 Months Ended

Sep. 30, 2019

Marketable Securities [Abstract]

MARKETABLE SECURITIES

Our marketable securities historically consist of certificates of deposit, commercial paper, corporate bonds and government municipal bonds. At September 30, 2019 we did not hold any marketable securities. At September 30, 2018 our marketable securities were (in thousands):



	Amortized Cost (1)		Unrealized Gains		Unrealized Losses			Fair Value (1)
Current marketable securities:
Certificates of deposit	$	4,756	$	—	$	(20	)	$	4,736
Total marketable securities	$	4,756	$	—	$	(20	)	$	4,736


(1)	Included in amortized cost and fair value is purchased and accrued interest of $6.

7. MARKETABLE SECURITIES (CONTINUED)

The following table shows the fair values and gross unrealized losses of our available-for-sale securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category (in thousands):



	September 30, 2018
	Less than 12 Months				More than 12 Months
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Certificates of deposit	$	—	$	—	$	4,736	$	(20	)
Total	$	—	$	—	$	4,736	$	(20	)

Fair Value Measurements

12 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

Financial assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement: Level 1 (unadjusted quoted prices in active markets for identical assets or liabilities); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). There were no transfers into or out of our Level 2 financial assets during fiscal 2019.

The following tables provide information by level for financial assets and liabilities that are measured at fair value on a recurring basis (in thousands):



			Fair Value Measurements at September 30, 2019 using:
	Total carrying value at September 30, 2019		Quoted price in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets:
Money market	$	56,700	$	56,700	$	—	$	—
Total assets measured at fair value	$	56,700	$	56,700	$	—	$	—
Liabilities:
Contingent consideration on acquired business	$	5,407	$	—	$	—	$	5,407
Total liabilities measured at fair value	$	5,407	$	—	$	—	$	5,407



			Fair Value Measurements at September 30, 2018 using:
	Total carrying value at September 30, 2018		Quoted price in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets:
Money market	$	24,318	$	24,318	$	—	$	—
Certificates of deposit	4,736		—		4,736		—
Total assets measured at fair value	$	29,054	$	24,318	$	4,736	$	—
Liabilities:
Contingent consideration on acquired business	$	10,065	$	—	$	—	$	10,065
Total liabilities measured at fair value	$	10,065	$	—	$	—	$	10,065

In connection with the October 2015 acquisition of Bluenica, we may be required to make contingent payments over a period of up to four years, subject to achieving specified revenue thresholds for sales of Bluenica products. The fair value of the liability for contingent consideration recognized was $10.4 million upon acquisition and was $2.9 million at September 30, 2019. We paid $0.5 million in fiscal 2017, no payments in fiscal 2018 and $2.2 million in fiscal 2019.

8. FAIR VALUE MEASUREMENTS (CONTINUED)

In connection with the November 2016 acquisition of FreshTemp^®, we were required to make a contingent payment after June 30, 2018, for revenue related to specific customer contracts signed by June 30, 2017. The fair value of the liability for consideration recognized upon acquisition was $1.3 million. We made a final payment of $0.2 million during fiscal 2019.

In connection our acquisition of TempAlert, we agreed to make contingent payments for the twelve month periods ending December 31, 2018 and December 31, 2019 based on the total Digi IoT Solutions segment revenue (see Note 2 to the consolidated financial statements). The fair value of the liability for contingent consideration was zero, both upon acquisition and at September 30, 2019.

In connection with our acquisition of Accelerated, we agreed to make contingent payments, based upon certain sales thresholds of Accelerated products (see Note 2 to the consolidated financial statements). The fair values of the liability for contingent consideration recognized upon acquisition of Accelerated on January 22, 2018 and at September 30, 2019 were $2.3 million and $2.5 million, respectively. The increase was a result of Accelerated outperforming initial revenue expectations. We made the first installment of $3.5 million in fiscal 2019.

The following table presents a reconciliation of the contingent consideration liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):



	Fiscal year ended September 30,
	2019			2018
Fair value at beginning of period	$	10,065		$	6,388
Purchase price contingent consideration	—			2,300
Contingent consideration payments	(5,848		)	—
Change in fair value of contingent consideration	1,190			1,377
Fair value at end of period	$	5,407		$	10,065

The change in fair value of contingent consideration reflects our estimate of the probability of achieving the relevant targets and is discounted based on our estimated discount rate. We have estimated the fair value of the contingent consideration at September 30, 2019 based on the probability of achieving the specified revenue thresholds of 100% for Bluenica, 0% for TempAlert, and a range of 70% to 100% for Accelerated. As of September 30, 2019, contingent consideration associated with the acquisition of Accelerated remains subject to future performance through January 21, 2020.

Restructuring and Related Activities [Abstract]

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Restructuring

12 Months Ended

Sep. 30, 2019

RESTRUCTURING

Manufacturing Transition

As announced on April 3, 2018, we transferred the manufacturing functions of our Eden Prairie, Minnesota operations facility to existing contract manufacture suppliers. As a result, 53 employment positions in total were eliminated, resulting in restructuring charges amounting to approximately $0.5 million for employee costs during the third and fourth quarters of fiscal 2018. The payments associated with these charges were completed in the first half of fiscal 2019.

10. RESTRUCTURING (CONTINUED)

2017 Restructuring

In May 2017, we approved a restructuring plan primarily impacting our France location, which is now closed. We also eliminated certain employment positions in the U.S. The restructuring was the result of a decision to consolidate our France operations to our Europe, Middle East and Africa ("EMEA") headquarters in Munich. The total restructuring charges amounted to $2.5 million, which included $2.3 million of employee costs and $0.2 million of contract termination costs during the third quarter of fiscal 2017. These actions resulted in an elimination of 10 employment positions in the U.S. and 8 employment positions in France. The payments associated with these charges were completed during the first half of fiscal 2019.

Below is a summary of the restructuring charges and other activity within the restructuring accrual all of which is included in our IoT Products & Services segment (in thousands):



	Manufacturing Transition			2017 Restructuring
	Employee Termination Costs			Employee Termination Costs			Other			Total
Balance at September 30, 2016	$	—		$	—		$	—		$	—
Restructuring charge	—			2,258			257			2,515
Payments	—			(845		)	(141		)	(986		)
Foreign currency fluctuation	—			115			12			127
Balance at September 30, 2017	$	—		$	1,528		$	128		$	1,656
Restructuring charge	504			—			—			504
Payments	(357		)	(1,035		)	(161		)	(1,553		)
Reversals	—			(244		)	41			(203		)
Foreign currency fluctuation	—			44			5			49
Balance at September 30, 2018	$	147		$	293		$	13		$	453
Payments	(108		)	(233		)	(18		)	(359		)
Reversals	(39		)	(53		)	5			(87		)
Foreign currency fluctuation	—			(7		)	—			(7		)
Balance at September 30, 2019	$	—		$	—		$	—		$	—

Revenue

12 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

REVENUE

Revenue Disaggregation

The following summarizes our revenue by geographic location of our customers:



	Fiscal years ended September 30,
($ in thousands)	2019		2018 (as adjusted)*		2017 (as adjusted)*
North America, primarily the United States	$	184,022	$	161,924	$	117,455
Europe, Middle East & Africa	39,896		39,211		39,403
Rest of world	30,285		25,758		24,482
Total revenue	$	254,203	$	226,893	$	181,340

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which we adopted on October 1, 2018.

11. REVENUE (CONTINUED)

The following summarizes our revenue by the timing of revenue recognition:



	Fiscal years ended September 30,
($ in thousands)	2019		2018 (as adjusted)*		2017 (as adjusted)*
Transferred at a point in time	$	231,387	$	212,448	$	176,567
Transferred over time	22,816		14,445		4,773
Total revenue	$	254,203	$	226,893	$	181,340

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which we adopted on October 1, 2018.

Contract Balances

Contract Assets

Contract assets consist of subscriber assets. These subscriber assets relate to fees in certain contracts that we charge our customers so they can begin using equipment. In these cases, we retain the ownership of the equipment that the customer uses. The total net book value of subscriber assets was $2.1 million at both September 30, 2019 and September 30, 2018 and is included in property, equipment and improvements, net. Depreciation expense for these subscriber assets was $1.1 million, $0.5 million and $0.1 million for fiscal 2019, 2018 and 2017, respectively. We depreciate the cost of this equipment over its useful life (typically three years).

Contract Liabilities

The timing of revenue recognition may differ from the timing of invoicing to customers. Customers are invoiced for subscription services in advance on a monthly, quarterly or annual basis. Contract liabilities consist of unearned revenue related to annual or multi-year contracts for subscription services and related implementation fees for our IoT Solutions segment and our Digi Remote Manager^® services in our IoT Products & Services segment.

Changes in unearned revenue were:



	Fiscal year ended September 30,
($ in thousands)	2019
Unearned revenue, beginning of period*	$	3,933
Billings	43,071
Revenue recognized	(41,979		)
Unearned revenue, end of period	$	5,025

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which we adopted on October 1, 2018.

Remaining Transaction Price

Transaction price allocated to the remaining performance obligations represents contracted revenue that has not been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. As of September 30, 2019 approximately $14.9 million of revenue is expected to be recognized from remaining performance obligations for subscriptions contracts. We expect to recognize revenue on approximately $6.8 million of remaining performance obligations over the next twelve months. Revenue from the remaining performance obligations we expect to recognize over a range of two to five years.

Income Taxes

12 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

INCOME TAXES

The components of income before income taxes are (in thousands):



	Fiscal year ended September 30,
	2019		2018 (as adjusted)*			2017 (as adjusted)*
United States	$	7,981	$	(2,427	)	$	5,229
International	3,164		5,677			4,321
Income before income taxes	$	11,145	$	3,250		$	9,550

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

The components of the income tax provision are (in thousands):



	Fiscal year ended September 30,
	2019			2018 (as adjusted)*			2017 (as adjusted)*
Current:
Federal	$	950		$	526		$	312
State	290			57			165
Foreign	746			1,412			1,756
Deferred:
U.S.	(825		)	(536		)	(1,432		)
Foreign	26			160			(654		)
Income tax provision	$	1,187		$	1,619		$	147

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Net deferred tax asset consists of (in thousands):



	As of September 30,
	2019			2018 (as adjusted)*
Non-current deferred tax asset	$	7,330		$	6,600
Non-current deferred tax liability	(261		)	(334		)
Net deferred tax asset	$	7,069		$	6,266

Depreciation and amortization	$	(480	)	$	(856	)
Inventories	536			740
Compensation costs	3,675			3,388
Other accruals	3,870			1,422
Tax credit carryforwards	4,911			7,063
Valuation allowance	(3,810		)	(3,291		)
Identifiable intangible assets	(1,633		)	(2,298		)
Other	—			98
Net deferred tax asset	$	7,069		$	6,266

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

As of September 30, 2019, we had $2.4 million of tax carryforwards (net of reserves) related to federal and state research and development tax credits. We also had $2.6 million of carryforwards (net, tax effected) consisting of a U.S. capital loss of $2.2 million, $0.1 million of other U.S. tax attributes, and non-U.S. net operating losses of $0.3 million. The majority of our federal research and development tax credits have a 20-year carryforward period. The state research and development tax credits have a 15-year carryforward period. The majority of our non-U.S. net operating losses have an unlimited carryforward period. Our non-U.S. tax credit carryforwards will expire in 2032. Our U.S. capital loss carryforward will expire in 2020.

12. INCOME TAXES (CONTINUED)

Our valuation allowance for certain U.S. and foreign locations was $3.8 million at September 30, 2019 and $3.3 million at September 30, 2018. The increase in valuation allowance is primarily the result of state research and development credits generated. The deferred tax assets realized could vary if there are differences in the timing or amount of future reversals of existing deferred tax liabilities or changes in the amounts of future taxable income. If future taxable income projections are not realized, an additional valuation allowance may be required. This would be reflected as income tax expense at the time that any such change in future taxable income is determined.

The reconciliation of the statutory federal income tax amount to our income tax provision is (in thousands):



	Fiscal year ended September 30,
	2019			2018 (as adjusted)*			2017 (as adjusted)*
Statutory income tax amount	$	2,341		$	809		$	3,249
Increase (decrease) resulting from:
State taxes, net of federal benefits	196			(71		)	124
Manufacturing deduction	—			(364		)	(150		)
Transaction costs	—			79			—
Employee stock purchase plan	59			56			79
Foreign operations	225			318			(142		)
Non-deductible executive compensation	171			27			—
Change in valuation allowance	520			(994		)	77
Utilization of research and development tax credits	(2,112		)	(1,971		)	(1,405		)
One-time transition tax	—			250			—
Deferred balance sheet remeasure	9			2,727			—
ASU 2016-09 excess stock compensation	(56		)	643			—
Contingent consideration	250			388			(1,172		)
Changes from provision to return	(511		)	(554		)	(196		)
Adjustment of tax contingency reserves	146			193			(370		)
Other, net	(51		)	83			53
Income tax provision	$	1,187		$	1,619		$	147

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

The Tax Cuts & Jobs Act of 2017 was enacted in the U.S. on December 22, 2017. We applied the guidance in Staff Accounting Bulletin ("SAB") 118 when accounting for the enactment-date income tax effects of this act in fiscal 2018. At September 30, 2018 we had not fully completed our accounting for the enactment effects of this act. We, however, had recorded a provisional estimate of the effects on our existing deferred tax balances and the one-time transition tax. The provision tax expense recorded in fiscal 2018 was $3.0 million. In the first quarter of fiscal 2019 we completed our accounting for the enactment date income tax effects of this act, and there were no significant adjustments to the provisional amounts recorded in fiscal 2018. In addition, certain provisions of this act became effective for us in fiscal 2019. The estimated tax impacts of these provisions are included in our effective tax rate for the current period.

12. INCOME TAXES (CONTINUED)

A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands):



	Fiscal year ended September 30,
	2019			2018			2017
Unrecognized tax benefits at beginning of fiscal year	$	1,561		$	1,335		$	1,708
Increases related to:
Prior year income tax positions	9			39			21
Current year income tax positions	314			315			257
Decreases related to:
Prior year income tax positions	(34		)	—			—
Expiration of statute of limitations	(137		)	(128		)	(651		)
Unrecognized tax benefits at end of fiscal year	$	1,713		$	1,561		$	1,335

The total amount of unrecognized tax benefits ("UTB") at September 30, 2019 that, if recognized, would affect our effective tax rate was $1.6 million. We expect that it is reasonably possible that the total amounts of UTB will decrease by approximately $0.3 million over the next 12 months due to the expiration of various statutes of limitations. Of the $1.7 million of UTB, $1.1 million is included in non-current income taxes payable and $0.6 million is included with non-current deferred tax assets on the Consolidated Balance Sheets at September 30, 2019.

We recognize interest and penalties related to income tax matters in income tax expense. During fiscal 2019 and 2018, there were insignificant amounts of interest and penalties related to income tax matters in income tax expense. We accrued interest and penalties related to unrecognized tax benefits of $0.1 million at both September 30, 2019 and 2018. These accrued interest and penalties are included in our non-current income taxes payable on our Consolidated Balance Sheets.

We operate in multiple tax jurisdictions both in the U.S. and outside of the U.S. and face audits from various tax authorities regarding transfer pricing, tax credits, and other matters. Accordingly, we must determine the appropriate allocation of income to each of these jurisdictions. This determination requires us to make several estimates and assumptions. Tax audits associated with the allocation of this income, and other complex issues, may require an extended period of time to resolve and may result in adjustments to our income tax balances in those years that are material to our Consolidated Balance Sheets and results of operations.

We file a U.S. federal income tax return and income tax returns in various states and foreign jurisdictions. With few exceptions, we are no longer subject to state and local or non-U.S. income tax examinations by tax authorities for years before fiscal year 2015. We are currently under U.S. federal examination for fiscal year 2017, and there is very limited audit activity of our income tax returns in U.S. state jurisdictions or international jurisdictions.

At September 30, 2019, the majority of undistributed foreign earnings are taxed under the one time transition tax and the global intangible low-taxed income ("GILTI") provision of the Tax Cuts and Jobs Act of 2017. Additionally, the previously un-taxed accumulated undistributed foreign earnings from fiscal 2018 are still permanently reinvested and, as such, we have not accrued additional U.S. tax. It is our position that the earnings of our foreign subsidiaries are to be reinvested indefinitely to fund current operations and provide for future international expansion opportunities and only repatriate earnings to the extent that U.S. taxes have already been recorded. As of September 30, 2019, we are permanently reinvested with respect to previously taxed accumulated earnings in all jurisdictions.

Although we have no current need to repatriate historical foreign earnings that have not been taxed in the U.S., if we change our assertion from indefinitely reinvesting undistributed foreign earnings, we would have to accrue applicable taxes. The amount of any taxes and the application of any tax credits would be determined based on the income tax laws at the time of such repatriation. Under current tax law, we estimate the unrecognized tax liability to be immaterial.

Stock-Based Compensation

12 Months Ended

Sep. 30, 2019

STOCK-BASED COMPENSATION

Stock-based awards were granted under the 2019 Omnibus Incentive Plan (the “2019 Plan”) beginning February 4, 2019 and, prior to that, were granted under the 2018 Omnibus Incentive Plan (the “2018 Plan”). Upon stockholder approval of the 2019 Plan, we ceased granting awards under any prior plan. Shares subject to awards under prior plans that are forfeited, canceled, returned to us for failure to satisfy vesting requirements, settled in cash or otherwise terminated without payment also will be available for grant under the 2019 Plan. The authority to grant options under the 2019 Plan and to set other terms and conditions rests with the Compensation Committee of our Board of Directors. We also have awards outstanding under our 2017 Omnibus Incentive Plan, 2016 Omnibus Plan, 2014 Omnibus Plan, 2013 Omnibus Incentive Plan and the 2000 Omnibus Stock Plan, as amended and restated as of December 4, 2009.

The 2019 Plan authorizes the issuance of up to 1,500,000 common shares in connection with awards of stock options, stock appreciation rights, restricted stock, restricted stock units, performance-based full value awards or other stock-based awards. Eligible participants include our employees, our affiliates, non-employee directors of our Company and any consultant or advisor who is a natural person and provides services to us or our affiliates. Options that have been granted under the 2019 Plan typically vest over a four-year period and will expire if unexercised after seven years from the date of grant. Restricted stock unit awards (“RSUs”) that have been granted to directors typically vest in one year. RSUs that have been granted to executives and employees typically vest in December over a four-year period. The 2019 Plan is scheduled to expire on February 3, 2029. Options under the 2019 Plan can be granted as either incentive stock options (“ISOs”) or non-statutory stock options (“NSOs”). The exercise price of options and the grant date price of restricted stock units shall be determined by our Compensation Committee but shall not be less than the fair market value of our common stock based on the closing price on the date of grant. As of September 30, 2019, there were approximately 1,399,866 shares available for future grants under the 2019 Plan.

The 2018 Plan, under which grants ceased upon approval of the 2019 Plan, authorized the issuance of up to 1,500,000 common shares in connection with awards of stock options, stock appreciation rights, restricted stock, restricted stock units, performance-based full value awards or other stock-based awards. Eligible participants included our employees, our affiliates, non-employee directors of our Company and any consultant or advisor who is a natural person and provided services to us or our affiliates. Options that have been granted under the 2018 Plan typically vested over a four-year period and expired if unexercised after seven years from the date of grant. RSUs that were granted to directors typically vested in one year. RSUs that were granted to executives and employees typically vested in January over a four-year period. Awards may no longer be granted under the 2018 Plan as grants ceased upon approval of the 2019 Plan effective February 4, 2019 at the Annual Meeting of Stockholders. The exercise price of options and the grant date price of restricted stock units was determined by our Compensation Committee but could not be less than the fair market value of our common stock based on the closing price on the date of grant.

Our equity plans and corresponding forms of award agreements generally have provisions allowing employees to elect to satisfy tax withholding obligations through the delivery of shares, having us retain a portion of shares issuable under the award or paying cash to us for the withholding. During fiscal 2019, 2018 and 2017 our employees forfeited 93,128, 74,204 and 49,684 shares, respectively in order to satisfy $1.1 million, $0.7 million and $0.7 million, respectively, of withholding tax obligations related to stock-based compensation, pursuant to terms of awards under our board and shareholder-approved compensation plans.

We sponsor an Employee Stock Purchase Plan, as amended and restated as of October 29, 2013, December 4, 2009 and November 27, 2006 (the "Purchase Plan"), covering all domestic employees with at least 90 days of continuous service and who are customarily employed at least 20 hours per week. The Purchase Plan allows eligible participants the right to purchase common stock on a quarterly basis at the lower of 85% of the market price at the beginning or end of each three-month offering period. The most recent amendments to the Purchase Plan, ratified by our stockholders on January 27, 2014, increased the total number of shares to 2,800,000 that may be purchased under the plan. Employee contributions to the Purchase Plan were $1.1 million, $1.1 million and $0.7 million in fiscal 2019, 2018 and 2017, respectively. Pursuant to the Purchase Plan, 111,036, 125,446, and 72,594 shares of common stock were issued to employees during fiscal 2019, 2018 and 2017, respectively. Shares are issued under the Purchase Plan from treasury stock. As of September 30, 2019, 204,540 shares of common stock were available for future issuances under the Purchase Plan.

13. STOCK-BASED COMPENSATION (CONTINUED)

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



	Fiscal year ended September 30,
	2019			2018			2017
Cost of sales	$	174		$	195		$	213
Sales and marketing	1,708			1,492			1,348
Research and development	996			516			656
General and administrative	2,777			2,651			2,442
Stock-based compensation before income taxes	5,655			4,854			4,659
Income tax benefit	(1,174		)	(1,017		)	(1,536		)
Stock-based compensation after income taxes	$	4,481		$	3,837		$	3,123

Stock Options

Below is a summary of our stock options as of September 30, 2019 and changes during the twelve months then ended (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, 2018	3,526		$10.49
Granted	736		12.01
Exercised	(540	)	9.02
Forfeited / Canceled	(374	)	12.39
Balance at September 30, 2019	3,348		$10.85	4.0	$	9,295

Exercisable at September 30, 2019	2,209		$16.45	3.2	$	7,027

(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $13.62 as of September 30, 2019, 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. The total intrinsic value of all options exercised during each of the twelve months ended September 30, 2019, 2018 and 2017 was $2.1 million, $1.2 million and $0.9 million, respectively.

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:



	Fiscal year ended September 30,
	2019		2018		2017
Weighted average per option grant date fair value	$	4.48	$	3.98	$	4.63
Assumptions used for option grants:
Risk free interest rate	1.60% - 2.93%		2.12% - 2.89%		1.46% - 1.96%
Expected term	6.00 years		6.00 years		6.00 years
Expected volatility	33% - 35%		33% - 34%		33% - 34%
Weighted average volatility	34%		33%		34%
Expected dividend yield	0%		0%		0%

The fair value of each option award granted during the periods presented was estimated using the Black-Scholes option valuation model that uses the assumptions noted in the above table. Expected volatilities are based on the historical volatility of our stock. We use historical data to estimate option exercise and employee termination information within the valuation model. The expected term of options granted is derived from the vesting period and historical information and represents the period of

13. STOCK-BASED COMPENSATION (CONTINUED)

time that options granted are expected to be outstanding. The risk-free rate used is the zero-coupon U.S. Treasury bond rate in effect at the time of the grant whose maturity equals the expected term of the option.

As of September 30, 2019, the total unrecognized compensation cost related to non-vested stock-based compensation arrangements, net of expected forfeitures, was $4.3 million. The related weighted average period over which this cost is expected to be recognized was approximately 2.7 years.

As of September 30, 2019, 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 - $9.03	533	3.28	$	8.20	524	$	8.18
$9.04 - $9.95	507	2.37	$	9.65	460	$	9.64
$9.96 - $10.40	481	5.17	$	10.34	215	$	10.34
$10.41 - $11.23	649	3.56	$	10.94	416	$	10.78
$11.24 - $12.63	676	4.85	$	12.09	329	$	12.31
$12.64 - $13.76	491	4.87	$	13.57	254	$	13.50
$13.77 - $14.75	11	1.82	$	14.75	11	$	14.75
$7.40 - $14.75	3,348	4.01	$	10.85	2,209	$	10.45

The total grant date fair value of shares vested was $3.5 million, $3.3 million and $2.4 million in each of fiscal 2019, 2018 and 2017, respectively.

Non-vested Restricted Stock Units

Below is a summary of our non-vested restricted stock units as of September 30, 2019 and changes during the twelve months then ended (in thousands, except per common share amounts):



	Number of Awards		Weighted Average Grant Date Fair Value
Nonvested at September 30, 2018	674		$	11.05
Granted	626		$	11.89
Vested	(255	)	$	10.45
Canceled	(157	)	$	12.04
Nonvested at September 30, 2019	888		$	11.65

As of September 30, 2019, the total unrecognized compensation cost related to non-vested restricted stock units was $7.5 million. The related weighted average period over which this cost is expected to be recognized was approximately 1.4 years.

Commitments

12 Months Ended

Sep. 30, 2019

Leases, Operating [Abstract]

COMMITMENTS

In October 2018, we signed a thirteen-year lease agreement for our new headquarters located in Hopkins, Minnesota. We have minimum total lease obligations of $14.8 million under this lease with Colfin Midwest NNN Investor, LLC for 59,497 square feet of office space. In April 2019, we received $3.3 million for a tenant improvement allowance associated with our new headquarters.

We have entered into various other operating lease agreements for office facilities and equipment, the last of which expires in fiscal 2032. The office facility leases generally require us to pay a pro-rata share of the lessor’s operating expenses. Certain operating leases contain escalation clauses and are being amortized on a straight-line basis over the term of the lease.

The following schedule reflects future minimum rental commitments at September 30, 2019 under noncancelable operating leases (in thousands):



Fiscal year	Amount
2020	$	2,596
2021	2,575
2022	2,314
2023	2,056
2024	2,095
Thereafter	11,361
Total minimum payments required	$	22,997

The following schedule shows the composition of total rental expense for all operating leases for the years ended September 30 (in thousands):



	Fiscal year ended September 30,
	2019		2018		2017
Total rental expense	$	2,947	$	1,735	$	1,342

Contingencies	12 Months Ended
Contingencies	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES In November 2018, DimOnOff Inc., a company headquartered in Quebec City, Quebec, Canada (“DimOnOff”), which sells control systems in the building automation and street lighting markets sued us and a former distributor from whom DimOnOff purchased certain of our products. The suit was brought in the Superior Court of the Province of Quebec in the District of Quebec (Canada) and alleges certain Digi products it purchased and incorporated into street lighting systems in a Canadian city were defective causing some of the street lights to malfunction. It alleges damages of just over CAD 1.0 million. We intend to defend ourselves against DimOnOff’s claims. At this time we cannot assess the likelihood or amount of any potential loss. In addition to the matter discussed above, in the normal course of business, we are subject to various claims and litigation, which may include, but are not limited to, patent infringement and intellectual property claims. While we are unable to predict 17. CONTINGENCIES (CONTINUED) the outcome of any potential claims or litigation due to the inherent unpredictability of these matters, we believe that it is possible that we could, in the future, incur judgments or enter into settlements of claims that could have a material adverse effect on our operations in any particular period.

Quarterly Financial Data

12 Months Ended

Sep. 30, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data

QUARTERLY FINANCIAL DATA (UNAUDITED)

(in thousands, except per common share data)



	Quarter ended
	Dec. 31			March 31			June 30		Sept. 30
Fiscal 2019
Revenue	$	62,313		$	65,764		$	61,166	$	64,960
Gross profit	$	29,783		$	30,329		$	28,328	$	30,595
Net income (1)	$	4,682		$	1,342		$	1,648	$	2,286
Net income per common share - basic	$	0.17		$	0.05		$	0.06	$	0.08
Net income per common share - diluted	$	0.17		$	0.05		$	0.06	$	0.08

Fiscal 2018 (as adjusted) (2)
Revenue	$	44,955		$	54,548		$	62,272	$	65,118
Gross profit	$	21,959		$	26,834		$	29,648	$	30,613
Net (loss) income (1)	$	(4,487	)	$	(126	)	$	2,904	$	3,340
Net (loss) income per common share - basic	$	(0.17	)	$	—		$	0.11	$	0.12
Net (loss) income per common share - diluted	$	(0.17	)	$	—		$	0.10	$	0.12

(1)

During fiscal 2018, we recorded discrete tax expense of $2.8 million in the first quarter of fiscal 2018, $0.2 million in the second quarter of fiscal 2018 and $0.1 million in the third quarter of fiscal 2018 resulting from new U.S. tax legislation that was enacted during the first quarter of fiscal 2018 and the adoption of ASU 2016-09 relating to the accounting for the tax effects of stock compensation. In the fourth quarter of fiscal 2018, we recorded a net tax benefit of $1.5 million for the release of a valuation allowance against U.S. federal capital loss carryforward due to expected capital gains tax in fiscal 2019 resulting from the sale of our corporate headquarters building in October 2018 (see Note 5 to the consolidated financial statements).


(2)	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Sep. 30, 2019

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II- Valuation and Qualifying Accounts

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

DIGI INTERNATIONAL INC.

(in thousands)



			Additions
Description	Balance at beginning of period		Charged to costs and expenses		Charged to Other Accounts			Deductions			Balance at end of period
Valuation allowance - deferred tax assets
September 30, 2019	$	3,291	$	529	$	—		$	10		$	3,810
September 30, 2018	$	5,952	$	521	$	—		$	3,182		$	3,291
September 30, 2017	$	5,914	$	136	$	—		$	98		$	5,952

Valuation account - doubtful accounts
September 30, 2019 (1)	$	785	$	635	$	—		$	452	(4)	$	968
September 30, 2018 (1)	$	341	$	729	$	40	(2)	$	325	(4)	$	785
September 30, 2017	$	209	$	127	$	20	(3)	$	15	(4)	$	341

Reserve for future returns and pricing adjustments
September 30, 2019	$	2,560	$	12,640	$	—		$	12,523		$	2,677
September 30, 2018	$	2,169	$	10,715	$	—		$	10,324		$	2,560
September 30, 2017	$	1,991	$	10,447	$	—		$	10,269		$	2,169


(1)	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which we adopted on October 1, 2018.


(2)	Established through purchase accounting relating to the acquisition of TempAlert


(3)	Established through purchase accounting relating to the acquisition of SMART Temps^®


(4)	Uncollectible accounts charged against allowance, net of recoveries

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Sep. 30, 2019

Principles of Consolidation

The consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications

Accounting Estimates

Cash Equivalents

Marketable Securities

Accounts Receivable

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Property, Equipment and Improvements, Net

Identifiable Intangible Assets

Foreign Currency Translation

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Contingent Consideration

Warranties

Treasury stock

Treasury Stock

Revenue Recognition

We determine the amount of revenue to be recognized through application of the following steps:


•	identification of the contract, or contracts with a customer;


•	identification of the performance obligations in the contract;


•	determination of the transaction price;


•	allocation of the transaction price to the performance obligations in the contract; and


•	recognition of revenue when or as we satisfy the performance obligations.

Hardware Product Revenue and SmartSense by Digi^™ Equipment Revenue and Associated Installation Fees

Subscription and Support Services Revenue

Professional Services Revenue

Contracts with Multiple Performance Obligations

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Research and Development

Income Taxes

Stock-Based Compensation

Comprehensive Income

Net Income Per Common Share

Recent Accounting Developments

Adopted

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

how certain transaction are classified in the statement of cash flows. This ASU was adopted by us on October 1, 2018 and has not had an impact on our consolidated financial statements.

To ease our transition in the adoption of Topic 606, we have elected the following practical expedients outlined in the new accounting guidance:


•	we have not disclosed the remaining transaction price for reporting periods prior to the first quarter of fiscal 2019;


•	for completed contracts that have variable consideration, we will use the as-invoiced amount for all of our time and materials contracts and contracts relating to Digi Remote Manager^® in instances where the contracts do not include free service; and


•	we will expense incremental costs of obtaining a contract when incurred if the amortization period of the asset is one year or less.

As follows, the adoption of the standard related to the new revenue recognition impacted our reported results:



	Fiscal year ended September 30, 2018
(in thousands, except per common share data)	As Reported		Impact of Adoption*			As Adjusted
Revenue	$	228,366	$	(1,473	)	$	226,893
Cost of sales	119,483		(1,644		)	117,839
Gross profit	108,883		171			109,054
Operating expenses	106,561		(289		)	106,272
Operating income	$	2,322	$	460		$	2,782
Net income	$	1,303	$	328		$	1,631
Diluted earnings per share	$	0.05	$	0.01		$	0.06

*The impact of the adoption of ASU 2014-09 solely impacts the results of our IoT Solutions segment.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)



	Fiscal year ended September 30, 2017
(in thousands, except per common share data)	As Reported		Impact of Adoption*			As Adjusted
Revenue	$	181,634	$	(294	)	$	181,340
Cost of sales	94,460		(353		)	94,107
Gross profit	87,174		59			87,233
Operating expenses	78,367		—			78,367
Operating income	$	8,807	$	59		$	8,866
Net income	$	9,366	$	37		$	9,403
Diluted earnings per share	$	0.35	$	—		$	0.35

*The impact of the adoption of ASU 2014-09 solely impacts the results of our IoT Solutions segment.



	September 30, 2018
(in thousands)	As Reported		Impact of Adoption			As Adjusted
Accounts receivable, net	$	50,817	$	(998	)	$	49,819
Property, equipment and improvements, net	$	6,270	$	2,084		$	8,354
Deferred tax assets	$	6,665	$	(65	)	$	6,600
Unearned revenue current	$	2,579	$	598		$	3,177
Other non-current liabilities	$	510	$	210		$	720
Retained earnings	$	151,748	$	213		$	151,961



	September 30, 2017
(in thousands)	As Reported		Impact of Adoption			As Adjusted
Accounts receivable, net	$	28,855	$	—		$	28,855
Property, equipment and improvements, net	$	12,801	$	440		$	13,241
Deferred tax assets	$	9,211	$	67		$	9,278
Unearned revenue current	$	1,343	$	469		$	1,812
Other non-current liabilities	$	654	$	153		$	807
Retained earnings	$	150,478	$	(115	)	$	150,363

Not Yet Adopted

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2019

Schedule of Calculation of Numerator and Denominator in Earnings Per Share

The following table is a reconciliation of the numerators and denominators in the net income per common share calculations (in thousands, except per common share data):



	Fiscal year ended September 30,
	2019		2018 (as adjusted)*		2017 (as adjusted)*
Numerator:
Net income	$	9,958	$	1,631	$	9,403
Denominator:
Denominator basic net income per common share — weighted average shares outstanding	27,905		27,083		26,432
Effect of dilutive securities:
Stock options and restricted stock units	649		569		667
Denominator diluted net income per common share — adjusted weighted average shares	28,554		27,652		27,099

Net income per common share, basic	$	0.36	$	0.06	$	0.36
Net income per common share, diluted	$	0.35	$	0.06	$	0.35

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

he adoption of the standard related to the new revenue recognition impacted our reported results:



	Fiscal year ended September 30, 2018
(in thousands, except per common share data)	As Reported		Impact of Adoption*			As Adjusted
Revenue	$	228,366	$	(1,473	)	$	226,893
Cost of sales	119,483		(1,644		)	117,839
Gross profit	108,883		171			109,054
Operating expenses	106,561		(289		)	106,272
Operating income	$	2,322	$	460		$	2,782
Net income	$	1,303	$	328		$	1,631
Diluted earnings per share	$	0.05	$	0.01		$	0.06

*The impact of the adoption of ASU 2014-09 solely impacts the results of our IoT Solutions segment.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)



	Fiscal year ended September 30, 2017
(in thousands, except per common share data)	As Reported		Impact of Adoption*			As Adjusted
Revenue	$	181,634	$	(294	)	$	181,340
Cost of sales	94,460		(353		)	94,107
Gross profit	87,174		59			87,233
Operating expenses	78,367		—			78,367
Operating income	$	8,807	$	59		$	8,866
Net income	$	9,366	$	37		$	9,403
Diluted earnings per share	$	0.35	$	—		$	0.35

*The impact of the adoption of ASU 2014-09 solely impacts the results of our IoT Solutions segment.



	September 30, 2018
(in thousands)	As Reported		Impact of Adoption			As Adjusted
Accounts receivable, net	$	50,817	$	(998	)	$	49,819
Property, equipment and improvements, net	$	6,270	$	2,084		$	8,354
Deferred tax assets	$	6,665	$	(65	)	$	6,600
Unearned revenue current	$	2,579	$	598		$	3,177
Other non-current liabilities	$	510	$	210		$	720
Retained earnings	$	151,748	$	213		$	151,961



	September 30, 2017
(in thousands)	As Reported		Impact of Adoption			As Adjusted
Accounts receivable, net	$	28,855	$	—		$	28,855
Property, equipment and improvements, net	$	12,801	$	440		$	13,241
Deferred tax assets	$	9,211	$	67		$	9,278
Unearned revenue current	$	1,343	$	469		$	1,812
Other non-current liabilities	$	654	$	153		$	807
Retained earnings	$	150,478	$	(115	)	$	150,363

Goodwill and other Identifiable Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Amortizable Identifiable Intangible Assets

Amortizable identifiable intangible assets, net as of September 30, 2019 and 2018 were comprised of the following (in thousands):



	September 30, 2019							September 30, 2018
	Gross carrying amount		Accum. amort.			Net		Gross carrying amount		Accum. amort.			Net
Purchased and core technology	$	57,699	$	(50,986	)	$	6,713	$	58,102	$	(48,693	)	$	9,409
License agreements	102		(74		)	28		102		(46		)	56
Patents and trademarks	14,577		(11,970		)	2,607		15,701		(12,242		)	3,459
Customer relationships	46,315		(25,266		)	21,049		46,605		(21,049		)	25,556
Non-compete agreements	600		(330		)	270		600		(210		)	390
Order backlog	1,800		(1,800		)	—		1,800		(1,350		)	450
Total	$	121,093	$	(90,426	)	$	30,667	$	122,910	$	(83,590	)	$	39,320

Schedule of Amortization Expense

Amortization expense for fiscal years 2019, 2018 and 2017 was as follows (in thousands):



Fiscal year	Total
2019	$	8,818
2018	$	9,435
2017	$	2,597

Schedule of Estimated Future Amortization Expense Related to Identifiable Intangible Assets

Estimated amortization expense for the next five years is as follows (in thousands):



Fiscal year	Total
2020	$	8,277
2021	$	7,434
2022	$	6,590
2023	$	4,392
2024	$	3,689

Schedule of Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill by reportable segments are (in thousands):



	Fiscal years ended September 30,
	IoT Products and Services			IoT Solutions			Total
Balance on September 30, 2017	$	98,981		$	33,014		$	131,995
Acquisitions	5,663			17,553			23,216
Foreign currency translation adjustment	(286		)	(390		)	(676		)
Balance on September 30, 2018	$	104,358		$	50,177		$	154,535
Foreign currency translation adjustment	(839		)	(274		)	(1,113		)
Balance at September 30, 2019	$	103,519		$	49,903		$	153,422

Segment Information and Major Customers (Tables)

12 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Summary operating results for each of our segments were as follows (in thousands):



	Fiscal years ended September 30,
	2019			2018 (as adjusted)*			2017 (as adjusted)*
Revenue
IoT Products & Services	$	215,287		$	201,506		$	174,237
IoT Solutions	38,916			25,387			7,103
Total revenue	$	254,203		$	226,893		$	181,340
Operating income (loss)
IoT Products & Services	$	18,674		$	14,923		$	12,804
IoT Solutions	(8,602		)	(12,141		)	(3,938		)
Total operating income	$	10,072		$	2,782		$	8,866
Depreciation and amortization
IoT Products & Services	$	6,102		$	6,040		$	3,575
IoT Solutions	7,294			6,744			1,990
Total depreciation and amortization	$	13,396		$	12,784		$	5,565

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Payments to Acquire Property, Plant and Equipment by Segment

Total expended for property, plant and equipment was as follows (in thousands):



	Fiscal years ended September 30,
	2019		2018		2017
IoT Products & Services	$	8,863	$	1,773	$	1,738
IoT Solutions	472		69		35
Total expended for property, plant and equipment	$	9,335	$	1,842	$	1,773

Schedule of Total Assets by Segment

Total assets for each of our segments were as follows (in thousands):



	As of September 30,
	2019		2018 (as adjusted)*
IoT Products & Services	$	215,651	$	209,574
IoT Solutions	90,255		99,822
Unallocated**	92,792		62,750
Total assets	$	398,698	$	372,146

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

**Unallocated consists of cash and cash equivalents, current marketable securities and long-term marketable securities.

Schedule of Net Property, Equipment and Improvements by Geographical Location

Net property, equipment and improvements by geographic location were as follows (in thousands):



	As of September 30,
	2019		2018 (as adjusted)*
United States	$	13,400	$	8,240
International, primarily Europe	457		114
Total net property, equipment and improvements	$	13,857	$	8,354

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Marketable Securities (Tables)

12 Months Ended

Sep. 30, 2019

Marketable Securities [Abstract]

Schedule of Marketable Securities

At September 30, 2018 our marketable securities were (in thousands):



	Amortized Cost (1)		Unrealized Gains		Unrealized Losses			Fair Value (1)
Current marketable securities:
Certificates of deposit	$	4,756	$	—	$	(20	)	$	4,736
Total marketable securities	$	4,756	$	—	$	(20	)	$	4,736


(1)	Included in amortized cost and fair value is purchased and accrued interest of $6.

Schedule of Unrealized Losses on Available-for-Sale Securities



	September 30, 2018
	Less than 12 Months				More than 12 Months
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Certificates of deposit	$	—	$	—	$	4,736	$	(20	)
Total	$	—	$	—	$	4,736	$	(20	)

Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value of Assets Measured on Recurring Basis

The following tables provide information by level for financial assets and liabilities that are measured at fair value on a recurring basis (in thousands):



			Fair Value Measurements at September 30, 2019 using:
	Total carrying value at September 30, 2019		Quoted price in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets:
Money market	$	56,700	$	56,700	$	—	$	—
Total assets measured at fair value	$	56,700	$	56,700	$	—	$	—
Liabilities:
Contingent consideration on acquired business	$	5,407	$	—	$	—	$	5,407
Total liabilities measured at fair value	$	5,407	$	—	$	—	$	5,407



			Fair Value Measurements at September 30, 2018 using:
	Total carrying value at September 30, 2018		Quoted price in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets:
Money market	$	24,318	$	24,318	$	—	$	—
Certificates of deposit	4,736		—		4,736		—
Total assets measured at fair value	$	29,054	$	24,318	$	4,736	$	—
Liabilities:
Contingent consideration on acquired business	$	10,065	$	—	$	—	$	10,065
Total liabilities measured at fair value	$	10,065	$	—	$	—	$	10,065

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents a reconciliation of the contingent consideration liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):



	Fiscal year ended September 30,
	2019			2018
Fair value at beginning of period	$	10,065		$	6,388
Purchase price contingent consideration	—			2,300
Contingent consideration payments	(5,848		)	—
Change in fair value of contingent consideration	1,190			1,377
Fair value at end of period	$	5,407		$	10,065

Restructuring (Tables)

12 Months Ended

Sep. 30, 2019

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve

Below is a summary of the restructuring charges and other activity within the restructuring accrual all of which is included in our IoT Products & Services segment (in thousands):



	Manufacturing Transition			2017 Restructuring
	Employee Termination Costs			Employee Termination Costs			Other			Total
Balance at September 30, 2016	$	—		$	—		$	—		$	—
Restructuring charge	—			2,258			257			2,515
Payments	—			(845		)	(141		)	(986		)
Foreign currency fluctuation	—			115			12			127
Balance at September 30, 2017	$	—		$	1,528		$	128		$	1,656
Restructuring charge	504			—			—			504
Payments	(357		)	(1,035		)	(161		)	(1,553		)
Reversals	—			(244		)	41			(203		)
Foreign currency fluctuation	—			44			5			49
Balance at September 30, 2018	$	147		$	293		$	13		$	453
Payments	(108		)	(233		)	(18		)	(359		)
Reversals	(39		)	(53		)	5			(87		)
Foreign currency fluctuation	—			(7		)	—			(7		)
Balance at September 30, 2019	$	—		$	—		$	—		$	—

Revenue (Tables)

12 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following summarizes our revenue by geographic location of our customers:



	Fiscal years ended September 30,
($ in thousands)	2019		2018 (as adjusted)*		2017 (as adjusted)*
North America, primarily the United States	$	184,022	$	161,924	$	117,455
Europe, Middle East & Africa	39,896		39,211		39,403
Rest of world	30,285		25,758		24,482
Total revenue	$	254,203	$	226,893	$	181,340

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which we adopted on October 1, 2018.

11. REVENUE (CONTINUED)

The following summarizes our revenue by the timing of revenue recognition:



	Fiscal years ended September 30,
($ in thousands)	2019		2018 (as adjusted)*		2017 (as adjusted)*
Transferred at a point in time	$	231,387	$	212,448	$	176,567
Transferred over time	22,816		14,445		4,773
Total revenue	$	254,203	$	226,893	$	181,340

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which we adopted on October 1, 2018.

Contract with Customer, Asset and Liability

Changes in unearned revenue were:



	Fiscal year ended September 30,
($ in thousands)	2019
Unearned revenue, beginning of period*	$	3,933
Billings	43,071
Revenue recognized	(41,979		)
Unearned revenue, end of period	$	5,025

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which we adopted on October 1, 2018.

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2019

Schedule of Components of Income Taxes

The components of income before income taxes are (in thousands):



	Fiscal year ended September 30,
	2019		2018 (as adjusted)*			2017 (as adjusted)*
United States	$	7,981	$	(2,427	)	$	5,229
International	3,164		5,677			4,321
Income before income taxes	$	11,145	$	3,250		$	9,550

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Schedule of Components of Income Tax Provision

The components of the income tax provision are (in thousands):



	Fiscal year ended September 30,
	2019			2018 (as adjusted)*			2017 (as adjusted)*
Current:
Federal	$	950		$	526		$	312
State	290			57			165
Foreign	746			1,412			1,756
Deferred:
U.S.	(825		)	(536		)	(1,432		)
Foreign	26			160			(654		)
Income tax provision	$	1,187		$	1,619		$	147

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Schedule of Net Deferred Tax Asset

Net deferred tax asset consists of (in thousands):



	As of September 30,
	2019			2018 (as adjusted)*
Non-current deferred tax asset	$	7,330		$	6,600
Non-current deferred tax liability	(261		)	(334		)
Net deferred tax asset	$	7,069		$	6,266

Depreciation and amortization	$	(480	)	$	(856	)
Inventories	536			740
Compensation costs	3,675			3,388
Other accruals	3,870			1,422
Tax credit carryforwards	4,911			7,063
Valuation allowance	(3,810		)	(3,291		)
Identifiable intangible assets	(1,633		)	(2,298		)
Other	—			98
Net deferred tax asset	$	7,069		$	6,266

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the statutory federal income tax amount to our income tax provision is (in thousands):



	Fiscal year ended September 30,
	2019			2018 (as adjusted)*			2017 (as adjusted)*
Statutory income tax amount	$	2,341		$	809		$	3,249
Increase (decrease) resulting from:
State taxes, net of federal benefits	196			(71		)	124
Manufacturing deduction	—			(364		)	(150		)
Transaction costs	—			79			—
Employee stock purchase plan	59			56			79
Foreign operations	225			318			(142		)
Non-deductible executive compensation	171			27			—
Change in valuation allowance	520			(994		)	77
Utilization of research and development tax credits	(2,112		)	(1,971		)	(1,405		)
One-time transition tax	—			250			—
Deferred balance sheet remeasure	9			2,727			—
ASU 2016-09 excess stock compensation	(56		)	643			—
Contingent consideration	250			388			(1,172		)
Changes from provision to return	(511		)	(554		)	(196		)
Adjustment of tax contingency reserves	146			193			(370		)
Other, net	(51		)	83			53
Income tax provision	$	1,187		$	1,619		$	147

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands):



	Fiscal year ended September 30,
	2019			2018			2017
Unrecognized tax benefits at beginning of fiscal year	$	1,561		$	1,335		$	1,708
Increases related to:
Prior year income tax positions	9			39			21
Current year income tax positions	314			315			257
Decreases related to:
Prior year income tax positions	(34		)	—			—
Expiration of statute of limitations	(137		)	(128		)	(651		)
Unrecognized tax benefits at end of fiscal year	$	1,713		$	1,561		$	1,335

Stock-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2019

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):



	Fiscal year ended September 30,
	2019			2018			2017
Cost of sales	$	174		$	195		$	213
Sales and marketing	1,708			1,492			1,348
Research and development	996			516			656
General and administrative	2,777			2,651			2,442
Stock-based compensation before income taxes	5,655			4,854			4,659
Income tax benefit	(1,174		)	(1,017		)	(1,536		)
Stock-based compensation after income taxes	$	4,481		$	3,837		$	3,123

Schedule of Stock Option Activity

Below is a summary of our stock options as of September 30, 2019 and changes during the twelve months then ended (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, 2018	3,526		$10.49
Granted	736		12.01
Exercised	(540	)	9.02
Forfeited / Canceled	(374	)	12.39
Balance at September 30, 2019	3,348		$10.85	4.0	$	9,295

Exercisable at September 30, 2019	2,209		$16.45	3.2	$	7,027

Schedule of Valuation Assumptions



	Fiscal year ended September 30,
	2019		2018		2017
Weighted average per option grant date fair value	$	4.48	$	3.98	$	4.63
Assumptions used for option grants:
Risk free interest rate	1.60% - 2.93%		2.12% - 2.89%		1.46% - 1.96%
Expected term	6.00 years		6.00 years		6.00 years
Expected volatility	33% - 35%		33% - 34%		33% - 34%
Weighted average volatility	34%		33%		34%
Expected dividend yield	0%		0%		0%

Schedule of Weighted Average Exercise Price Range and Remaining Contractual Life

As of September 30, 2019, 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 - $9.03	533	3.28	$	8.20	524	$	8.18
$9.04 - $9.95	507	2.37	$	9.65	460	$	9.64
$9.96 - $10.40	481	5.17	$	10.34	215	$	10.34
$10.41 - $11.23	649	3.56	$	10.94	416	$	10.78
$11.24 - $12.63	676	4.85	$	12.09	329	$	12.31
$12.64 - $13.76	491	4.87	$	13.57	254	$	13.50
$13.77 - $14.75	11	1.82	$	14.75	11	$	14.75
$7.40 - $14.75	3,348	4.01	$	10.85	2,209	$	10.45

Schedule of Nonvested Restricted Stock Units

Below is a summary of our non-vested restricted stock units as of September 30, 2019 and changes during the twelve months then ended (in thousands, except per common share amounts):



	Number of Awards		Weighted Average Grant Date Fair Value
Nonvested at September 30, 2018	674		$	11.05
Granted	626		$	11.89
Vested	(255	)	$	10.45
Canceled	(157	)	$	12.04
Nonvested at September 30, 2019	888		$	11.65

Commitments (Tables)

12 Months Ended

Sep. 30, 2019

Leases, Operating [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

The following schedule reflects future minimum rental commitments at September 30, 2019 under noncancelable operating leases (in thousands):



Fiscal year	Amount
2020	$	2,596
2021	2,575
2022	2,314
2023	2,056
2024	2,095
Thereafter	11,361
Total minimum payments required	$	22,997

Schedule of Rent Expense

The following schedule shows the composition of total rental expense for all operating leases for the years ended September 30 (in thousands):



	Fiscal year ended September 30,
	2019		2018		2017
Total rental expense	$	2,947	$	1,735	$	1,342

Quarterly Financial Data (Tables)

12 Months Ended

Sep. 30, 2019

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Data (Unaudited)

(in thousands, except per common share data)



	Quarter ended
	Dec. 31			March 31			June 30		Sept. 30
Fiscal 2019
Revenue	$	62,313		$	65,764		$	61,166	$	64,960
Gross profit	$	29,783		$	30,329		$	28,328	$	30,595
Net income (1)	$	4,682		$	1,342		$	1,648	$	2,286
Net income per common share - basic	$	0.17		$	0.05		$	0.06	$	0.08
Net income per common share - diluted	$	0.17		$	0.05		$	0.06	$	0.08

Fiscal 2018 (as adjusted) (2)
Revenue	$	44,955		$	54,548		$	62,272	$	65,118
Gross profit	$	21,959		$	26,834		$	29,648	$	30,613
Net (loss) income (1)	$	(4,487	)	$	(126	)	$	2,904	$	3,340
Net (loss) income per common share - basic	$	(0.17	)	$	—		$	0.11	$	0.12
Net (loss) income per common share - diluted	$	(0.17	)	$	—		$	0.10	$	0.12

(1)


(2)	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Summary of Significant Accounting Policies (Property, Equipment and Improvements, Net) (Details)	12 Months Ended
	Sep. 30, 2019
Furniture and Fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Property, equipment and improvements depreciation life	3 years
Furniture and Fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Property, equipment and improvements depreciation life	7 years
Building Improvements
Property, Plant and Equipment [Line Items]
Property, equipment and improvements depreciation life	10 years
Buildings
Property, Plant and Equipment [Line Items]
Property, equipment and improvements depreciation life	39 years

Summary of Significant Accounting Policies (Revenue Recognition) (Details)	12 Months Ended
	Sep. 30, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Subscriber assets depreciation period	3 years
Minimum \| Subscription revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Length Of Contract	1 year
Maximum \| Subscription revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Length Of Contract	5 years

Summary of Significant Accounting Policies (Net Income Per Common Share) (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

^[2]

Jun. 30, 2018

^[2]

Mar. 31, 2018

^[2]

Dec. 31, 2017

^[2]

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2017

Denominator for basic net income per common share — weighted average shares outstanding

$ 2,286

^[1]

$ 1,648

^[1]

$ 1,342

^[1]

$ 4,682

^[1]

$ 3,340

^[1]

$ 2,904

^[1]

$ (126)

^[1]

$ (4,487)

^[1]

$ 9,958

$ 1,631

^[2]

$ 9,403

^[2]

27,905,000

27,083,000

^[2]

26,432,000

^[2]

Effect of dilutive securities:

Stock options and restricted stock units

649,000

569,000

^[2]

667,000

^[2]

Denominator for diluted net income per common share — adjusted weighted average shares

28,554,000

27,652,000

^[2]

27,099,000

^[2]

Net income per common share:

Basic

$ 0.08

$ 0.06

$ 0.05

$ 0.17

$ 0.12

$ 0.11

$ 0.00

$ (0.17)

$ 0.36

$ 0.06

^[2]

$ 0.36

^[2]

Diluted net income per common share:

Antidilutive securities excluded from computation of earnings per share

$ 0.08

$ 0.06

$ 0.05

$ 0.17

$ 0.12

$ 0.10

$ 0.00

$ (0.17)

$ 0.35

$ 0.06

^[2]

$ 0.35

^[2]

744,513

925,063

1,142,322

[1]

During fiscal 2019, we recorded a discrete tax benefit of $0.1 million in the first quarter of fiscal 2019 resulting from reversal of income tax reserves due to the expiration of the statutes of limitation as well as excess tax benefits recognized on stock compensation. In the second quarter of fiscal 2019 we recorded a discrete tax benefit of $0.2 million related to the recording of federal and state net operating losses as well as the reversal of income tax reserves due to the expiration of the statutes of limitation. In the third quarter of fiscal 2019, we recorded a discrete tax benefit of $0.3 million from reversal of income tax reserves due to the expiration of the statutes of limitation as well as adjustments from the filing of the federal and foreign income tax returns.During fiscal 2018, we recorded discrete tax expense of $2.8 million in the first quarter of fiscal 2018, $0.2 million in the second quarter of fiscal 2018 and $0.1 million in the third quarter of fiscal 2018 resulting from new U.S. tax legislation that was enacted during the first quarter of fiscal 2018 and the adoption of ASU 2016-09 relating to the accounting for the tax effects of stock compensation. In the fourth quarter of fiscal 2018, we recorded a net tax benefit of $1.5 million for the release of a valuation allowance against U.S. federal capital loss carryforward due to expected capital gains tax in fiscal 2019 resulting from the sale of our corporate headquarters building in October 2018 (see Note 5 to the consolidated financial statements).

[2]

Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Summary of Significant Accounting Policies (ASC 606 Income Statement) (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

^[1]

Jun. 30, 2018

^[1]

Mar. 31, 2018

^[1]

Dec. 31, 2017

^[1]

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2017

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

$ 64,960

$ 61,166

$ 65,764

$ 62,313

$ 65,118

$ 62,272

$ 54,548

$ 44,955

$ 254,203

$ 226,893

^[1]

$ 181,340

^[1]

135,168

117,839

^[1]

94,107

^[1]

30,595

28,328

30,329

29,783

30,613

29,648

26,834

21,959

119,035

109,054

^[1]

87,233

^[1]

108,963

106,272

^[1]

78,367

^[1]

10,072

2,782

^[1]

8,866

^[1]

$ 2,286

^[2]

$ 1,648

^[2]

$ 1,342

^[2]

$ 4,682

^[2]

$ 3,340

^[2]

$ 2,904

^[2]

$ (126)

^[2]

$ (4,487)

^[2]

$ 9,958

$ 1,631

^[1]

$ 9,403

^[1]

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

$ 0.08

$ 0.06

$ 0.05

$ 0.17

$ 0.12

$ 0.10

$ 0.00

$ (0.17)

$ 0.35

$ 0.06

^[1]

$ 0.35

^[1]

As reported

$ 228,366

$ 181,634

119,483

94,460

108,883

87,174

106,561

78,367

2,322

8,807

$ 1,303

$ 9,366

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

$ 0.05

$ 0.35

ASU 2014-09

$ 226,893

$ 181,340

117,839

94,107

109,054

87,233

106,272

78,367

2,782

8,866

$ 1,631

$ 9,403

ASU 2014-09 | Impact of Adoption

$ 0.06

$ 0.35

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

^[3]

$ (1,473)

$ (294)

^[3]

(1,644)

(353)

^[3]

171

^[3]

(289)

^[3]

460

^[3]

$ 328

$ 37

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

^[3]

$ 0.01

$ 0.00

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.
[2]	During fiscal 2019, we recorded a discrete tax benefit of $0.1 million in the first quarter of fiscal 2019 resulting from reversal of income tax reserves due to the expiration of the statutes of limitation as well as excess tax benefits recognized on stock compensation. In the second quarter of fiscal 2019 we recorded a discrete tax benefit of $0.2 million related to the recording of federal and state net operating losses as well as the reversal of income tax reserves due to the expiration of the statutes of limitation. In the third quarter of fiscal 2019, we recorded a discrete tax benefit of $0.3 million from reversal of income tax reserves due to the expiration of the statutes of limitation as well as adjustments from the filing of the federal and foreign income tax returns.During fiscal 2018, we recorded discrete tax expense of $2.8 million in the first quarter of fiscal 2018, $0.2 million in the second quarter of fiscal 2018 and $0.1 million in the third quarter of fiscal 2018 resulting from new U.S. tax legislation that was enacted during the first quarter of fiscal 2018 and the adoption of ASU 2016-09 relating to the accounting for the tax effects of stock compensation. In the fourth quarter of fiscal 2018, we recorded a net tax benefit of $1.5 million for the release of a valuation allowance against U.S. federal capital loss carryforward due to expected capital gains tax in fiscal 2019 resulting from the sale of our corporate headquarters building in October 2018 (see Note 5 to the consolidated financial statements).
[3]	The impact of the adoption of ASU 2014-09 solely impacts the results of our IoT Solutions segment.

Summary of Significant Accounting Policies (ASC 606 Balance Sheet) (Details) - USD ($)
$ in Thousands

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

$ 56,417

$ 49,819

^[1]

$ 28,855

13,857

8,354

^[1]

13,241

7,330

6,600

^[1]

9,278

Unearned revenue current

3,177

1,812

3,809

720

^[1]

807

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

$ 161,919

151,961

^[1]

150,363

As reported

50,817

28,855

6,270

12,801

6,665

9,211

Unearned revenue current

2,579

1,343

510

654

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

151,748

150,478

ASU 2014-09

Cumulative-effect adjustment from adoption of new accounting policy

$ (152)

ASU 2014-09 | Impact of Adoption

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

(998)

2,084

440

(65)

Unearned revenue current

598

469

210

153

Retained Earnings | ASU 2014-09

$ 213

$ (115)

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

Cumulative-effect adjustment from adoption of new accounting policy

^[1]

$ (152)

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Summary of Significant Accounting Policies (Adoption of ASC 842) (Details) - ASU 2016-02 - Impact of Adoption $ in Millions	Sep. 30, 2019 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use asset	$ 14.1
Lease liability	$ 17.9

Acquisitions (Details)
$ in Thousands

1 Months Ended

12 Months Ended

Jan. 22, 2018

USD ($)

Oct. 20, 2017

USD ($)

Jan. 09, 2017

USD ($)

Nov. 01, 2016

USD ($)

Apr. 30, 2019

USD ($)

Sep. 30, 2019

USD ($)

Sep. 30, 2018

USD ($)

Sep. 30, 2017

USD ($)

Dec. 31, 2019

USD ($)

$ 1,190

$ 1,377

^[1]

$ (4,364)

^[1]

Accelerated Concepts

Earn-out payment installment period

$ 16,400

Cash acquired

$ 200

Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual

22,200

Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual

2,800

Acquisition costs

300

TempAlert

Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual

$ 40,700

Cash acquired

$ 600

17,000

Acquisition costs

1,100

$ 1,400

400

SMART Temps

$ 28,800

Cash acquired

500

FreshTemp

$ 1,700

Earn-out payments | Accelerated Concepts

$ 2,300

$ 6,500

Business Combination, Contingent Consideration, Liability

$ 3,500

2,500

Earn-out payments | TempAlert

Business Combination, Contingent Consideration, Liability

Earn-out payments | SMART Temps

Business Combination, Contingent Consideration, Liability

$ 7,200

$ 0

Contingent Consideration | Accelerated Concepts

Contingent Consideration | FreshTemp

3,500

Forecast | Earn-out payments | TempAlert

$ 200

$ 45,000

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Goodwill and other Identifiable Intangible Assets (Details) - USD ($)
$ in Thousands

Sep. 30, 2019

Sep. 30, 2018

$ 121,093

$ 122,910

(90,426)

(83,590)

Purchased and Core Technology

30,667

39,320

^[1]

57,699

58,102

(50,986)

(48,693)

6,713

9,409

License Agreements

102

(74)

(46)

Patents and Trademarks

14,577

15,701

(11,970)

(12,242)

2,607

3,459

Customer Relationships

46,315

46,605

(25,266)

(21,049)

21,049

25,556

Non-compete Agreements

600

(330)

(210)

270

390

Order backlog

1,800

(1,800)

(1,350)

$ 0

$ 450

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Goodwill and other Identifiable Intangible Assets (Amortization Expense) (Details) - USD ($)
$ in Thousands

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2017

Cost of Sales and General and Administrative Expense [Member]

Amortization expense

$ 8,818

$ 9,435

^[1]

$ 2,597

^[1]

8,277

7,434

6,590

4,392

3,689

Amortization expense

$ 8,818

$ 9,435

$ 2,597

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Goodwill and other Identifiable Intangible Assets (Goodwill) (Details) - USD ($)
$ in Thousands

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Goodwill [Line Items]

$ 154,535

^[1]

$ 131,995

Acquisitions

23,216

(1,113)

(676)

153,422

154,535

^[1]

Goodwill [Line Items]

50,177

33,014

Acquisitions

17,553

(274)

(390)

IoT Products and Services

49,903

50,177

Goodwill [Line Items]

104,358

98,981

Acquisitions

5,663

(839)

(286)

$ 103,519

$ 104,358

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Segment Information and Major Customers Summary of Operating Results by Segment (Details)
$ in Thousands

3 Months Ended

12 Months Ended

Sep. 30, 2019

USD ($)

Jun. 30, 2019

USD ($)

Mar. 31, 2019

USD ($)

Dec. 31, 2018

USD ($)

Sep. 30, 2018

USD ($)

^[1]

Jun. 30, 2018

USD ($)

^[1]

Mar. 31, 2018

USD ($)

^[1]

Dec. 31, 2017

USD ($)

^[1]

Sep. 30, 2019

USD ($)

segment

Sep. 30, 2018

USD ($)

^[1]

Sep. 30, 2017

USD ($)

^[1]

Number of reportable segments | segment

$ 64,960

$ 61,166

$ 65,764

$ 62,313

$ 65,118

$ 62,272

$ 54,548

$ 44,955

$ 254,203

$ 226,893

$ 181,340

Operating income (loss)

10,072

2,782

8,866

13,396

12,784

5,565

IoT Products & Services

215,287

201,506

174,237

Operating income (loss)

18,674

14,923

12,804

6,102

6,040

3,575

38,916

25,387

7,103

Operating income (loss)

(8,602)

(12,141)

(3,938)

$ 7,294

$ 6,744

$ 1,990

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Segment Information and Major Customers Expended for Property, Plant and Equipment by Segment (Details) - USD ($)
$ in Thousands

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2017

Expended for property, plant and equipment

$ 9,335

$ 1,842

^[1]

$ 1,773

^[1]

IoT Products & Services

Expended for property, plant and equipment

8,863

1,773

1,738

Expended for property, plant and equipment

$ 472

$ 69

$ 35

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Segment Information and Major Customers Total Assets by Segment (Details) - USD ($)
$ in Thousands

Sep. 30, 2019

Sep. 30, 2018

^[1]

Segment Reporting, Asset Reconciling Item [Line Items]

Segment Reporting, Asset Reconciling Item [Line Items]

$ 398,698

$ 372,146

IoT Products & Services

215,651

209,574

Segment Reporting, Asset Reconciling Item [Line Items]

Segment Reporting, Asset Reconciling Item [Line Items]

90,255

99,822

Unallocated

^[2]

$ 92,792

$ 62,750

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.
[2]	Unallocated consists of cash and cash equivalents, current marketable securities and long-term marketable securities.

Segment Information and Major Customers Net Property, Equipment and Improvements by Geographic Area (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Net property, equipment and improvements	$ 13,857	$ 8,354
North America, primarily United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net property, equipment and improvements	13,400	8,240
International, primarily Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Net property, equipment and improvements	$ 457	$ 114

Segment Information and Major Customers Geographic revenue (Details)
$ in Thousands

3 Months Ended

12 Months Ended

Sep. 30, 2019

customer

Sep. 30, 2018

customer

Sep. 30, 2019

USD ($)

customer

Jun. 30, 2019

USD ($)

Mar. 31, 2019

USD ($)

Dec. 31, 2018

USD ($)

Sep. 30, 2018

USD ($)

customer

Jun. 30, 2018

USD ($)

^[1]

Mar. 31, 2018

USD ($)

^[1]

Dec. 31, 2017

USD ($)

^[1]

Sep. 30, 2019

USD ($)

customer

Sep. 30, 2018

USD ($)

customer

Sep. 30, 2017

USD ($)

customer

Number of customer representing over ten percent of revenue

Revenue | $

$ 64,960

$ 61,166

$ 65,764

$ 62,313

$ 65,118

^[1]

$ 62,272

$ 54,548

$ 44,955

$ 254,203

$ 226,893

^[1]

$ 181,340

^[1]

Number of customer representing over ten percent of consolidated accounts receivable

Accounts Receivable

Percentage of concentration

14.70%

12.20%

United States | U.S. Export Net Sales

Percentage of concentration

28.50%

30.10%

37.20%

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Sale of Building (Details)
$ in Thousands

3 Months Ended

12 Months Ended

Oct. 02, 2018

USD ($)

ft²

Dec. 31, 2018

USD ($)

Sep. 30, 2018

USD ($)

Sep. 30, 2019

USD ($)

Sep. 30, 2018

USD ($)

Sep. 30, 2017

USD ($)

^[1]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

$ 5,220

^[1]

$ 0

$ 5,220

^[1]

Gain on sale

4,392

622

^[1]

$ (25)

Minnetonka, MN

Area of real estate sold (in sqft) | ft²

130,000

Proceeds from sale of building

$ 10,000

Tax benefit related to sale of building

^[1]

5,200

$ 5,200

$ 1,100

Gain on sale

$ 4,400

Gain on sale, net of deferred tax

$ 3,400

Leasehold Improvements | Hopkins, MN

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Payments for leasehold improvements

$ 5,800

Useful life

10 years

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Selected Balance Sheet Data (Details) - USD ($)
$ in Thousands

Sep. 30, 2019

Sep. 30, 2018

^[1]

Sep. 30, 2017

Accounts receivable, net:

Accounts receivable

$ 60,062

$ 53,164

Less allowance for doubtful accounts

968

785

Less reserve for future returns and pricing adjustments

2,677

2,560

Total accounts receivable, net

56,417

49,819

$ 28,855

Inventories:

Raw materials

12,308

22,047

Work in process

565

525

Finished goods

26,891

19,072

Total Inventories

39,764

41,644

Less accumulated depreciation and amortization

38,737

30,398

24,880

22,044

Total property, equipment and improvements, net

13,857

8,354

$ 13,241

Land

570

Buildings

2,338

Improvements

7,646

1,698

Equipment

17,440

15,803

Purchased Software

4,030

3,966

Furniture and Fixtures

2,963

3,350

Subscriber assets

$ 3,750

$ 2,673

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Selected Balance Sheet Data Assets Held for Sale (Details) - USD ($)
$ in Thousands

Sep. 30, 2019

Sep. 30, 2018

$ 0

$ 5,220

^[1]

Minnetonka, MN

Debt Securities, Available-for-sale [Line Items]

^[1]

$ 5,200

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Marketable Securities (Fair Value to Amortized Cost) (Details)
$ in Thousands

Sep. 30, 2018

USD ($)

Available-for-sale securities, amortized cost basis

$ 4,756

^[1]

Available-for-sale securities, unrealized gains

Available-for-sale securities, unrealized losses

(20)

Available-for-sale marketable securities, fair value

4,736

^[1]

Purchased and accrued interest

Current Assets | Certificates of deposit

Debt Securities, Available-for-sale [Line Items]

Available-for-sale securities, amortized cost basis

4,756

^[1]

Available-for-sale securities, unrealized gains

Available-for-sale securities, unrealized losses

(20)

Available-for-sale marketable securities, fair value

$ 4,736

^[1]

[1]	Included in amortized cost and fair value is purchased and accrued interest of $6

Marketable Securities (Fair Value and Gross Unrealized Losses for AFS) (Details) $ in Thousands	Sep. 30, 2018 USD ($)
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	4,736
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(20)
Certificates of deposit
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	4,736
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ (20)

(Financial Assets and Liabilities) (Details) - USD ($)
$ in Thousands

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2017

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring

^[1]

$ 4,736

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

$ 56,700

24,318

Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

4,736

Fair Value, Inputs, Level 3

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring

5,407

10,065

$ 6,388

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Contingent Consideration | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring

5,407

10,065

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Contingent Consideration | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Contingent Consideration | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Money Market Funds | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring

5,407

10,065

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Money Market Funds | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring

56,700

24,318

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Money Market Funds | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Certificates of deposit | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Certificates of deposit | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Certificates of deposit | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring

4,736

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

56,700

29,054

Estimate of Fair Value Measurement [Member] | Contingent Consideration | Fair Value, Measurements, Recurring

5,407

10,065

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Estimate of Fair Value Measurement [Member] | Money Market Funds | Fair Value, Measurements, Recurring

5,407

10,065

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Estimate of Fair Value Measurement [Member] | Certificates of deposit | Fair Value, Measurements, Recurring

$ 56,700

24,318

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

$ 4,736

[1]	Included in amortized cost and fair value is purchased and accrued interest of $6

Fair Value Measurements (Reconciliation of Liability) (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at beginning of period	$ 10,065	$ 6,388
Purchase price contingent consideration	0	2,300
Contingent consideration payments	(5,848)	0
Change in fair value of contingent consideration	1,190	1,377
Fair value at end of period	$ 5,407	$ 10,065

Fair Value Measurements (Details) - USD ($)

1 Months Ended

9 Months Ended

12 Months Ended

Oct. 05, 2015

Apr. 30, 2019

Jun. 30, 2019

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2017

Jan. 22, 2018

Oct. 20, 2017

Nov. 01, 2016

Fair Value, Inputs, Level 3

$ 1,190,000

$ 1,377,000

^[1]

$ (4,364,000)

^[1]

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

Contingent Consideration | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3

5,407,000

10,065,000

6,388,000

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

TempAlert | Maximum | Fair Value, Inputs, Level 3

5,407,000

10,065,000

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

Accelerated Concepts | Minimum | Fair Value, Inputs, Level 3

0.00%

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

Accelerated Concepts | Maximum | Fair Value, Inputs, Level 3

70.00%

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

Accelerated Concepts | Contingent Consideration

100.00%

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

3,500,000

Bluenica Corporation

Business Combination, Contingent Liability, Payout Period

4 years

Bluenica Corporation | Maximum | Fair Value, Inputs, Level 3

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

Bluenica Corporation | Contingent Consideration

100.00%

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

FreshTemp | Contingent Consideration

2,200,000

$ 500,000

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

Earn-out payments | TempAlert

200,000

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

Business Combination, Contingent Consideration, Liability

Earn-out payments | Accelerated Concepts

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

Business Combination, Contingent Consideration, Liability

2,500,000

Estimate of Fair Value Measurement [Member] | Contingent Consideration | Fair Value, Measurements, Recurring

$ 3,500,000

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

Estimate of Fair Value Measurement [Member] | TempAlert | Contingent Consideration | Fair Value, Measurements, Recurring

5,407,000

$ 10,065,000

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

Estimate of Fair Value Measurement [Member] | Accelerated Concepts | Contingent Consideration | Fair Value, Measurements, Recurring

$ 0

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

Estimate of Fair Value Measurement [Member] | Bluenica Corporation | Contingent Consideration | Fair Value, Measurements, Recurring

$ 2,300,000

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

Estimate of Fair Value Measurement [Member] | FreshTemp | Contingent Consideration | Fair Value, Measurements, Recurring

$ 10,400,000

$ 2,900,000

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

$ 1,300,000

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Product Warranty Obligation (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 1,172	$ 987	$ 1,033
Warranties issued	305	759	679
Settlements made	(465)	(574)	(725)
Ending balance	$ 1,012	$ 1,172	$ 987

Restructuring (Details) $ in Thousands	1 Months Ended	3 Months Ended	6 Months Ended	12 Months Ended
Restructuring (Details) $ in Thousands	May 31, 2017 employee	Jun. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) employee	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance				$ 453	$ 1,656	$ 0
Restructuring charge					504	2,515
Payments for restructuring				(359)	(1,553)	(986)
Restructuring reversals				(87)	(203)
Restructuring foreign currency fluctuation				(7)	49	127
Restructuring reserve, ending balance			$ 453	0	453	1,656
Employee Severance \| Manufacturing Transition
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance				147	0	0
Restructuring charge					504	0
Payments for restructuring				(108)	(357)	0
Restructuring reversals				(39)	0
Restructuring foreign currency fluctuation				0	0	0
Restructuring reserve, ending balance			147	0	147	0
Employee Severance \| 2017 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance				293	1,528	0
Restructuring charge					0	2,258
Payments for restructuring				(233)	(1,035)	(845)
Restructuring reversals				(53)	(244)
Restructuring foreign currency fluctuation				(7)	44	115
Restructuring reserve, ending balance			293	0	293	1,528
Facility Closing \| 2017 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance				13	128	0
Restructuring charge					0	257
Payments for restructuring				(18)	(161)	(141)
Restructuring reversals				5	41
Restructuring foreign currency fluctuation				0	5	12
Restructuring reserve, ending balance			$ 13	$ 0	$ 13	$ 128
IoT Products & Services \| Manufacturing Transition
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated \| employee			53
IoT Products & Services \| 2017 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring charge		$ 2,500
IoT Products & Services \| Employee Severance \| Manufacturing Transition
Restructuring Reserve [Roll Forward]
Restructuring charge			$ 500
IoT Products & Services \| Employee Severance \| 2017 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring charge		2,300
IoT Products & Services \| Contract Termination \| 2017 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring charge		$ 200
IoT Products & Services \| UNITED STATES \| 2017 Restructuring
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated \| employee	10
IoT Products & Services \| FRANCE \| 2017 Restructuring
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated \| employee	8

Revenue - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

^[1]

Jun. 30, 2018

^[1]

Mar. 31, 2018

^[1]

Dec. 31, 2017

^[1]

Sep. 30, 2019

Sep. 30, 2018

^[1]

Sep. 30, 2017

^[1]

North America, primarily United States

$ 64,960

$ 61,166

$ 65,764

$ 62,313

$ 65,118

$ 62,272

$ 54,548

$ 44,955

$ 254,203

$ 226,893

$ 181,340

Europe, Middle East & Africa

184,022

161,924

117,455

39,896

39,211

39,403

Rest of world

Transferred at a point in time

30,285

25,758

24,482

231,387

212,448

176,567

Transferred over time

Unearned revenue, beginning of period

$ 22,816

$ 14,445

$ 4,773

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Revenue - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Depreciation expense	$ 1,100	$ 500	$ 100
Period of amortization	3 years
Minimum
Disaggregation of Revenue [Line Items]
Performance obligation time period	2 years
Maximum
Disaggregation of Revenue [Line Items]
Performance obligation time period	5 years
Equipment
Disaggregation of Revenue [Line Items]
Contract assets	$ 2,100	$ 2,084

Revenue - Unearned Revenue (Details)
$ in Thousands

12 Months Ended

Sep. 30, 2019

USD ($)

Unearned Revenue [Roll Forward]

$ 3,933

^[1]

Billings

43,071

Revenue recognized

(41,979)

Unearned revenue, end of period

$ 5,025

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Revenue - Performance Obligations (Details) $ in Millions	Sep. 30, 2019 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2010-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 6.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 14.9

Income Taxes (Details) - USD ($)
$ in Thousands

12 Months Ended

Sep. 30, 2018

Sep. 30, 2019

Income tax provision for Tax Cuts & Jobs Act of 2017

Valuation allowance

$ 3,291

^[1]

$ 3,810

$ 3,000

Tax Credit Carryforward [Line Items]

U.S. capital loss carryforward

2,600

United States Federal Tax Jurisdiction

Tax Credit Carryforward [Line Items]

Federal and state research and development tax credits

2,400

U.S. capital loss carryforward

2,200

Deferred Tax Assets, Other Tax Carryforwards

100

Foreign Tax Authority

Tax Credit Carryforward [Line Items]

Non-U.S. operating losses

$ 300

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Income Taxes (Income Taxes) (Details) - USD ($)
$ in Thousands

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

^[1]

Sep. 30, 2017

^[1]

Income before income taxes

United States

$ 7,981

$ (2,427)

$ 5,229

International

3,164

5,677

4,321

$ 11,145

$ 3,250

$ 9,550

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Income Taxes (Income Tax Provision) (Details) - USD ($)
$ in Thousands

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

^[1]

Sep. 30, 2017

^[1]

Current:

Federal

$ 950

$ 526

$ 312

State

290

165

Foreign

746

1,412

1,756

Deferred:

U.S.

(825)

(536)

(1,432)

Foreign

160

(654)

Income tax provision

$ 1,187

$ 1,619

$ 147

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Income Taxes (Deferred Tax Assets) (Details) - USD ($)
$ in Thousands

Sep. 30, 2019

Sep. 30, 2018

^[1]

Sep. 30, 2017

Non-current deferred tax asset

$ 7,330

$ 6,600

$ 9,278

Non-current deferred tax liability

(261)

(334)

Net deferred tax asset

7,069

6,266

(480)

(856)

Identifiable intangible assets

536

740

Compensation costs

3,675

3,388

Other accruals

3,870

1,422

Tax credit carryforwards

4,911

7,063

Valuation allowance

(3,810)

(3,291)

(1,633)

(2,298)

Other

Net deferred tax asset

$ 7,069

$ 6,266

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($)
$ in Thousands

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

^[1]

Sep. 30, 2017

^[1]

Statutory income tax amount

$ 2,341

$ 809

$ 3,249

State taxes, net of federal benefits

196

(71)

124

Manufacturing deduction

(364)

(150)

Transaction costs

Employee stock purchase plan

Foreign operations

225

318

(142)

Non-deductible executive compensation

171

Change in valuation allowance

520

(994)

Utilization of research and development tax credits

(2,112)

(1,971)

(1,405)

One-time transition tax

250

Deferred balance sheet remeasure

2,727

ASU 2016-09 excess stock compensation

(56)

643

Contingent consideration

250

388

(1,172)

Changes from provision to return

(511)

(554)

(196)

Adjustment of tax contingency reserves

146

193

(370)

Other, net

(51)

Income tax provision

$ 1,187

$ 1,619

$ 147

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, beginning balance	$ 1,561	$ 1,335	$ 1,708
Increases related to prior year income tax positions	9	39	21
Increases related to current year income tax positions	314	315	257
Decreases related to prior year income tax positions	(34)	0	0
Decreases related to expiration of statute of limitations	(137)	(128)	(651)
Unrecognized tax benefits, ending balance	$ 1,713	$ 1,561	$ 1,335

Income Taxes (Unrecognized Tax Benefits, Additional Information) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Income Tax Contingency [Line Items]
Unrecognized tax benefits that would impact effective tax rate	$ 1,600
Unrecognized tax benefits	1,713	$ 1,561	$ 1,335	$ 1,708
Accrued income tax penalties and interest for unrecognized tax benefits	100	$ 100
Noncurrent income taxes payable
Income Tax Contingency [Line Items]
Unrecognized tax benefits	1,100
Noncurrent deferred tax assets
Income Tax Contingency [Line Items]
Unrecognized tax benefits	600
Maximum
Income Tax Contingency [Line Items]
Decrease in unrecognized tax benefits that is reasonably possible	$ 300

Stock-Based Compensation (Details) - USD ($)
$ in Thousands

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2017

Feb. 04, 2019

Jan. 29, 2018

Jan. 27, 2014

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Proceeds from employee stock purchase plan transactions

$ 1,058

$ 1,115

^[1]

$ 685

^[1]

Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation

93,128

74,204

49,684

Share-based Payment Arrangement, Decrease for Tax Withholding Obligation

$ 1,100

$ 700

Total intrinsic value of all options exercised

2,100

1,200

900

Total grant date fair value of shares vested

3,500

3,300

2,400

Stock Options

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total unrecognized compensation cost nonvested awards

$ 4,300

Weighted average period, unrecognized compensation cost, nonvested awards

2 years 8 months 12 days

Restricted Stock Units

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Weighted average period, unrecognized compensation cost, nonvested awards

1 year 4 months 24 days

Total unrecognized compensation cost, restricted stock units

$ 7,500

The Purchase Plan

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of shares authorized

2,800,000

Proceeds from employee stock purchase plan transactions

$ 1,100

$ 700

Number of continuous days of service

90 days

Number of hours per week employed

20 hours

Percent of market value

85.00%

Offering period

3 months

Common shares issued to employees

111,036

125,446

72,594

Shares available for future issuance

204,540

The 2019 Plan

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of shares authorized

1,500,000

Number of shares available for future grants

1,399,866

The 2019 Plan | Stock Options

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Expiration period

7 years

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

4 years

The 2018 Plan

Number of shares authorized

1,500,000

The 2018 Plan | Stock Options

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Expiration period

7 years

Director | The 2019 Plan | Restricted Stock Units

4 years

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Director | The 2018 Plan | Restricted Stock Units

1 year

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Executives and Employees | The 2019 Plan | Restricted Stock Units

1 year

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Executives and Employees | The 2018 Plan | Restricted Stock Units

4 years

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Quarterly Financial Information Disclosure [Abstract]

4 years

[1]	Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

Stock-Based Compensation (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 5,655	$ 4,854	$ 4,659
Income tax benefit	(1,174)	(1,017)	(1,536)
Stock-based compensation after income taxes	4,481	3,837	3,123
Cost of Sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	174	195	213
Sales and Marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	1,708	1,492	1,348
Research and Development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	996	516	656
General and Administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 2,777	$ 2,651	$ 2,442

Stock-Based Compensation (Options and Common Shares Reserved for Grant) (Details) - Stock Options $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2019 USD ($) $ / shares shares
Options Outstanding [Roll Forward]
Options Outstanding, Beginning Balance \| shares	3,526
Options Outstanding, Granted \| shares	736
Options Outstanding, Exercised \| shares	(540)
Options Outstanding, Forfeited / Cancelled \| shares	(374)
Options Outstanding, Ending Balance \| shares	3,348
Options Outstanding, Exercisable \| shares	2,209
Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price, Beginning Balance	$ 10.49
Weighted Average Exercise Price, Granted	12.01
Weighted Average Exercise Price, Exercised	9.02
Weighted Average Exercise Price, Forfeited / Cancelled	12.39
Weighted Average Exercise Price, Ending Balance	10.85
Weighted Average Exercise Price, Exercisable	$ 16.45
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted Average Remaining Contractual Term, Outstanding	4 years
Weighted Average Remaining Contractual Term, Exercisable	3 years 2 months 12 days
Aggregate Intrinsic Value, Outstanding \| $	$ 9,295
Aggregate Intrinsic Value, Exercisable \| $	$ 7,027
Closing Stock Price	$ 13.62

Stock-Based Compensation (Fair Value Assumptions) (Details) - Stock Options - $ / shares	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average per option grant date fair value	$ 4.48	$ 3.98	$ 4.63
Assumptions Used For Options Grants [Abstract]
Risk free interest rate, minimum	1.60%	2.12%	1.46%
Risk free interest rate, maximum	2.93%	2.89%	1.96%
Expected term	6 years	6 years	6 years
Expected volatility rate, minimum	33.00%	33.00%	33.00%
Expected volatility rate, maximum	35.00%	34.00%	34.00%
Weighted average volatility	34.00%	33.00%	34.00%
Expected dividend yield	0.00%	0.00%	0.00%

Stock-Based Compensation (Exercise Price Range) (Details) - Stock Options shares in Thousands	12 Months Ended
	Sep. 30, 2019 $ / shares shares
$7.40 - $9.03
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	$ 7.40
Exercise Price Range, Upper Range	$ 9.03
Options Outstanding \| shares	533
Weighted Average Remaining Contractual Term	3 years 3 months 10 days
Weighted Average Exercise Price, Options Outstanding	$ 8.20
Number of Shares Vested, Options Exercisable \| shares	524
Weighted Average Exercise Price, Options Exercisable	$ 8.18
$9.04 - $9.95
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	9.04
Exercise Price Range, Upper Range	$ 9.95
Options Outstanding \| shares	507
Weighted Average Remaining Contractual Term	2 years 4 months 13 days
Weighted Average Exercise Price, Options Outstanding	$ 9.65
Number of Shares Vested, Options Exercisable \| shares	460
Weighted Average Exercise Price, Options Exercisable	$ 9.64
$9.96 - $10.40
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	9.96
Exercise Price Range, Upper Range	$ 10.40
Options Outstanding \| shares	481
Weighted Average Remaining Contractual Term	5 years 2 months 1 day
Weighted Average Exercise Price, Options Outstanding	$ 10.34
Number of Shares Vested, Options Exercisable \| shares	215
Weighted Average Exercise Price, Options Exercisable	$ 10.34
$10.41 - $11.23
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	10.41
Exercise Price Range, Upper Range	$ 11.23
Options Outstanding \| shares	649
Weighted Average Remaining Contractual Term	3 years 6 months 21 days
Weighted Average Exercise Price, Options Outstanding	$ 10.94
Number of Shares Vested, Options Exercisable \| shares	416
Weighted Average Exercise Price, Options Exercisable	$ 10.78
$11.24 - $12.63
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	11.24
Exercise Price Range, Upper Range	$ 12.63
Options Outstanding \| shares	676
Weighted Average Remaining Contractual Term	4 years 10 months 6 days
Weighted Average Exercise Price, Options Outstanding	$ 12.09
Number of Shares Vested, Options Exercisable \| shares	329
Weighted Average Exercise Price, Options Exercisable	$ 12.31
$12.64 - $13.76
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	12.64
Exercise Price Range, Upper Range	$ 13.76
Options Outstanding \| shares	491
Weighted Average Remaining Contractual Term	4 years 10 months 13 days
Weighted Average Exercise Price, Options Outstanding	$ 13.57
Number of Shares Vested, Options Exercisable \| shares	254
Weighted Average Exercise Price, Options Exercisable	$ 13.50
$13.77 - $14.75
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	13.77
Exercise Price Range, Upper Range	$ 14.75
Options Outstanding \| shares	11
Weighted Average Remaining Contractual Term	1 year 9 months 25 days
Weighted Average Exercise Price, Options Outstanding	$ 14.75
Number of Shares Vested, Options Exercisable \| shares	11
Weighted Average Exercise Price, Options Exercisable	$ 14.75
$7.40 - $14.75
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	7.40
Exercise Price Range, Upper Range	$ 14.75
Options Outstanding \| shares	3,348
Weighted Average Remaining Contractual Term	4 years 3 days
Weighted Average Exercise Price, Options Outstanding	$ 10.85
Number of Shares Vested, Options Exercisable \| shares	2,209
Weighted Average Exercise Price, Options Exercisable	$ 10.45

Stock-Based Compensation (Non-Vested Options) (Details) - Restricted Stock Units shares in Thousands	12 Months Ended
	Sep. 30, 2019 $ / shares shares
Nonvested Number of Restricted Stock Units [Roll Forward]
Number of Restricted Stock Units, Beginning Balance \| shares	674
Number of Restricted Stock Units, Granted \| shares	626
Number of Restricted Stock Units, Vested \| shares	(255)
Number of Restricted Stock Units, Canceled \| shares	(157)
Number of Restricted Stock Units, Ending Balance \| shares	888
Nonvested Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share [Roll Forward]
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Beginning Balance \| $ / shares	$ 11.05
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Granted \| $ / shares	11.89
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested \| $ / shares	10.45
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Canceled \| $ / shares	12.04
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance \| $ / shares	$ 11.65

Common Stock Repurchase (Details) - USD ($)	3 Months Ended	12 Months Ended
Common Stock Repurchase (Details) - USD ($)	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Apr. 24, 2018	May 02, 2017
Shares repurchased, value		$ 1,071,000	$ 748,000	$ 938,000
May 2018 authorized repurchase program
Stock repurchase program, authorized amount					$ 20,000,000
Shares repurchased		0
May 2017 authorized repurchase program
Stock repurchase program, authorized amount						$ 20,000,000
Shares repurchased	28,691
Shares repurchased, value	$ 300,000

Employee Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Defined Contribution Plan Disclosure [Line Items]
Matching contributions, amount	$ 1.8	$ 1.6	$ 1.4
Defined contribution plan
Defined Contribution Plan Disclosure [Line Items]
Maximum annual contribution per employee percentage	25.00%
Defined contribution plan \| Full Employer Match
Defined Contribution Plan Disclosure [Line Items]
Employers percent of matching contributions	100.00%
Percent of employees' gross pay for employer match	3.00%
Defined contribution plan \| Half Employer Match
Defined Contribution Plan Disclosure [Line Items]
Employers percent of matching contributions	50.00%
Percent of employees' gross pay for employer match	2.00%

Commitments - Additional Information (Details) $ in Thousands	1 Months Ended
	Apr. 30, 2019 USD ($)	Sep. 30, 2019 USD ($)	Oct. 31, 2018 USD ($) ft²
Operating Leased Assets [Line Items]
Minimum lease obligations		$ 22,997
Hopkins, MN
Operating Leased Assets [Line Items]
Term of lease			13 years
Minimum lease obligations			$ 14,800
Lessee, Operating Lease, Area Of Real Estate \| ft²			59,497
Proceeds from tenant improvement allowance	$ 3,300

Commitments (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Leases, Operating [Abstract]
2020	$ 2,596
2021	2,575
2022	2,314
2023	2,056
2024	2,095
Thereafter	11,361
Total minimum payments required	$ 22,997

Quarterly Financial Data (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

^[1]

Jun. 30, 2018

^[1]

Mar. 31, 2018

^[1]

Dec. 31, 2017

^[1]

Sep. 30, 2019

Sep. 30, 2018

^[1]

Sep. 30, 2017

^[1]

$ 64,960

$ 61,166

$ 65,764

$ 62,313

$ 65,118

$ 62,272

$ 54,548

$ 44,955

$ 254,203

$ 226,893

$ 181,340

Net (loss) income per common share, basic (USD per share)

30,595

28,328

30,329

29,783

30,613

29,648

26,834

21,959

119,035

109,054

87,233

Net (loss) income

$ 2,286

^[2]

$ 1,648

^[2]

$ 1,342

^[2]

$ 4,682

^[2]

$ 3,340

^[2]

$ 2,904

^[2]

$ (126)

^[2]

$ (4,487)

^[2]

$ 9,958

$ 1,631

$ 9,403

$ 0.08

$ 0.06

$ 0.05

$ 0.17

$ 0.12

$ 0.11

$ 0.00

$ (0.17)

$ 0.36

$ 0.06

$ 0.36

Net (loss) income per common share, diluted (USD per share)

$ 0.08

$ 0.06

$ 0.05

$ 0.17

$ 0.12

$ 0.10

$ 0.00

$ (0.17)

$ 0.35

$ 0.06

$ 0.35

[1]

Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which we adopted on October 1, 2018.

[2]

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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