0000854775-20-000032 | 10-K | XBRL Viewer

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Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Sep. 30, 2020	Nov. 20, 2020	Mar. 31, 2020
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	001-34033
Entity Registrant Name	DIGI INTERNATIONAL INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	41-1532464
Entity Address, Address Line One	9350 Excelsior Blvd.
Entity Address, Address Line Two	Suite 700
Entity Address, City or Town	Hopkins
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55343
City Area Code	952
Local Phone Number	912-3444
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 272,901,608
Entity Common Stock, Shares Outstanding		29,241,998
Entity Central Index Key	0000854775
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false
NASDAQ - ALL MARKETS [Member]
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	DGII
Security Exchange Name	NASDAQ

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Revenue:
Revenue	$ 279,271	$ 254,203	$ 226,893
Cost of sales:
Amortization	4,487	2,963	2,871
Total cost of sales	135,299	135,168	117,839
Gross profit	143,972	119,035	109,054
Operating expenses:
Sales and marketing	52,761	45,801	44,517
Research and development	43,765	37,564	33,178
General and administrative	36,012	25,685	28,276
Restructuring charge (reversal)	117	(87)	301
Total operating expenses	132,655	108,963	106,272
Operating income	11,317	10,072	2,782
Other (expense) income, net:
Interest income	304	733	445
Interest expense	(3,592)	(102)	(25)
Other (expense) income, net	(566)	442	48
Total other (expense) income, net	(3,854)	1,073	468
Income before income taxes	7,463	11,145	3,250
Income tax (benefit) expense	(948)	1,187	1,619
Net income	$ 8,411	$ 9,958	$ 1,631
Net income per common share:
Basic	$ 0.29	$ 0.36	$ 0.06
Diluted net income per common share:
Diluted	$ 0.28	$ 0.35	$ 0.06
Weighted average common shares:
Basic (shares)	28,849	27,905	27,083
Diluted (shares)	29,546	28,554	27,652
Product
Revenue:
Revenue	$ 248,374	$ 224,530	$ 201,737
Cost of sales:
Cost of sales	118,322	118,855	104,639
Service
Revenue:
Revenue	30,897	29,673	25,156
Cost of sales:
Cost of sales	$ 12,490	$ 13,350	$ 10,329

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

12 Months Ended

Sep. 30, 2020

Sep. 30, 2019

Sep. 30, 2018

Statement of Comprehensive Income [Abstract]

Net income

$ 8,411

$ 9,958

$ 1,631

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustment

1,698

(2,003)

(865)

Change in net unrealized gain (loss) on investments

(31)

Less income tax (expense) benefit

(5)

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

^[1]

Less income tax benefit (2)

^[2]

(8)

Other comprehensive income (loss), net of tax

1,698

(1,989)

(867)

Comprehensive income

$ 10,109

$ 7,969

$ 764

[1]	Recorded in Other (expense) income, net in our Consolidated Statements of Operations.
[2]	Recorded in Income tax (benefit) expense in our Consolidated Statements of Operations.

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Current assets:
Cash and cash equivalents	$ 54,129	$ 92,792
Accounts receivable, net	59,227	56,417
Inventories	51,568	39,764
Other current assets	5,134	3,574
Total current assets	170,058	192,547
Property, equipment and improvements, net	11,507	13,857
Identifiable intangible assets, net	121,248	30,667
Goodwill	210,135	153,422
Deferred tax assets	389	7,330
Operating lease right-of-use assets	14,334	0
Other non-current assets	1,011	875
Total assets	528,682	398,698
Current liabilities:
Current portion of long-term debt	1,972	0
Accounts payable	28,067	21,183
Accrued compensation	9,372	8,733
Unearned revenue	7,691	5,025
Contingent consideration on acquired businesses	4,228	5,407
Current portion of operating lease liabilities	2,527	0
Other current liabilities	7,373	4,110
Total current liabilities	61,230	44,458
Income taxes payable	1,958	1,192
Deferred tax liabilities	17,171	261
Long-term Debt	58,980	0
Operating lease liabilities	16,193	0
Other non-current liabilities	1,650	3,809
Total liabilities	157,182	49,720
Commitments and Contingencies (see Note 17)
Stockholders’ equity:
Preferred stock, $.01 par value; 2,000,000 shares authorized; none issued and outstanding	0	0
Common stock, $.01 par value; 60,000,000 shares authorized; 35,512,843 and 34,608,003 shares issued	355	346
Additional paid-in capital	279,741	266,567
Retained earnings	170,330	161,919
Accumulated other comprehensive loss	(23,817)	(25,515)
Treasury stock, at cost, 6,353,094 and 6,367,428 shares	(55,109)	(54,339)
Total stockholders’ equity	371,500	348,978
Total liabilities and stockholders’ equity	$ 528,682	$ 398,698

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2020	Sep. 30, 2019
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	35,512,843	34,608,003
Treasury stock, shares	6,353,094	6,367,428

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Operating activities:
Net income	$ 8,411	$ 9,958	$ 1,631
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation of property, equipment and improvements	4,545	4,578	3,349
Amortization of identifiable intangible assets	14,754	8,818	9,435
Stock-based compensation	7,237	5,655	4,854
Deferred income tax benefit	(3,357)	(799)	(376)
Gain on sale of property, equipment and improvements	0	(4,392)	(622)
Change in fair value of contingent consideration	(128)	1,190	1,377
Provision for bad debt and product returns	2,135	635	1,120
Provision for inventory obsolescence	2,630	1,874	2,056
Other, net	366	(156)	368
Changes in operating assets and liabilities (net of acquisitions):
Accounts receivable	5,539	(6,589)	(16,004)
Inventories	(11,133)	(1,062)	(11,344)
Other assets	(704)	(866)	(1,412)
Income taxes	(1,100)	(103)	697
Accounts payable	3,205	8,232	2,728
Accrued expenses	2,078	1,991	(635)
Net cash provided by (used in) operating activities	34,478	28,964	(2,778)
Investing activities:
Proceeds from maturities of marketable securities	0	4,750	32,032
Proceeds from sale of business	0	0	2,000
Acquisition of businesses, net of cash acquired	(136,098)	0	(56,258)
Proceeds from sale of property and equipment	0	10,096	731
Purchase of property, equipment, improvements and certain other intangible assets	(899)	(9,335)	(1,842)
Net cash (used in) provided by investing activities	(136,997)	5,511	(23,337)
Financing activities:
Proceeds from long-term debt	119,018	0	0
Payments on long-term debt	(55,893)	0	0
Acquisition earn-out payments	(4,698)	(3,748)	0
Proceeds from stock option plan transactions	5,902	4,874	5,460
Proceeds from employee stock purchase plan transactions	1,065	1,058	1,115
Taxes paid for net share settlement of share-based payment awards	(1,791)	(1,071)	(748)
Net cash provided by financing activities	63,603	1,113	5,827
Effect of exchange rate changes on cash and cash equivalents	253	(810)	80
Net (decrease) increase in cash and cash equivalents	(38,663)	34,778	(20,208)
Cash and cash equivalents, beginning of period	92,792	58,014	78,222
Cash and cash equivalents, end of period	54,129	92,792	58,014
Supplemental disclosures of cash flow information:
Interest paid	3,009	1	10
Income taxes paid, net	3,686	2,048	1,235
Supplemental schedule of non-cash investing and financing activities:
Accrual for property, equipment, improvements and certain other intangibles assets	(26)	0	(78)
Transfer of inventory to property, equipment and improvements	(1,363)	(1,064)	(2,159)
Liability related to acquisition of business	$ (5,100)	$ 0	$ (2,300)

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment [Member]	Common Stock	Treasury Stock	Additional Paid-in Capital	Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment [Member]	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment [Member]	Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment from adoption of ASU 2016-09	$ 319,029	$ 19	$ 330	$ (54,533)	$ 245,528	$ 52	$ 150,363	$ (33)	$ (22,659)
Beginning balance at Sep. 30, 2017	319,029	19	$ 330	$ (54,533)	245,528	52	150,363	(33)	(22,659)
Beginning balance (in shares) at Sep. 30, 2017			33,008	6,437
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment from adoption of ASU 2016-09	330,493	$ 19	$ 338	$ (54,216)	255,936	$ 52	151,961	$ (33)	(23,526)
Net income	1,631						1,631
Other comprehensive income (loss)	(867)								(867)
Employee stock purchase issuances (in shares)				(126)
Employee stock purchase issuances	1,115			$ 1,065	50
Repurchase of common stock (in shares)				74
Repurchase of common stock	(748)			$ (748)
Issuance of stock under stock award plans (in shares)			805
Issuance of stock under stock award plans	5,460		$ 8		5,452
Stock-based compensation expense	4,854				4,854
Ending balance (in shares) at Sep. 30, 2018			33,813	6,385
Ending balance at Sep. 30, 2018	330,493		$ 338	$ (54,216)	255,936		151,961		(23,526)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment from adoption of ASU 2016-09	330,493		338	(54,216)	255,936		151,961		(23,526)
Cumulative-effect adjustment from adoption of ASU 2016-09	330,493		$ 346	$ (54,339)	266,567		161,919		(25,515)
Net income	9,958						9,958
Other comprehensive income (loss)	(1,989)								(1,989)
Employee stock purchase issuances (in shares)				(111)
Employee stock purchase issuances	1,058			$ 948	110
Repurchase of common stock (in shares)				93
Repurchase of common stock	(1,071)			$ (1,071)
Issuance of stock under stock award plans (in shares)			795
Issuance of stock under stock award plans	4,874		$ 8		4,866
Stock-based compensation expense	5,655				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		(25,515)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment from adoption of ASU 2016-09	348,978		346	(54,339)	266,567		161,919		(25,515)
Cumulative-effect adjustment from adoption of ASU 2016-09	348,978		$ 355	$ (55,109)	279,741		170,330		(23,817)
Net income	8,411						8,411
Other comprehensive income (loss)	1,698								1,698
Employee stock purchase issuances (in shares)				(118)
Employee stock purchase issuances	1,065			$ 1,021	44
Repurchase of common stock (in shares)				104
Repurchase of common stock	(1,791)			$ (1,791)
Issuance of stock under stock award plans (in shares)			905
Issuance of stock under stock award plans	5,902		$ 9		5,893
Stock-based compensation expense	7,237				7,237
Ending balance (in shares) at Sep. 30, 2020			35,513	6,353
Ending balance at Sep. 30, 2020	371,500		$ 355	$ (55,109)	279,741		170,330		(23,817)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment from adoption of ASU 2016-09	$ 371,500		$ 355	$ (55,109)	$ 279,741		$ 170,330		$ (23,817)

Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

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". Fiscal 2018 hardware product and services and solutions amounts have been reclassified to conform to our fiscal 2020 and fiscal 2019 presentation.

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 previously consisted of certificates of deposit, commercial paper, corporate bonds and government municipal bonds. All marketable securities were accounted for as available-for-sale and were 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 obtained quoted market prices and trading activity for each security when available. We obtained relevant information from our investment advisor and, if warranted, we may have reviewed the financial solvency of certain security issuers.

We regularly monitored and evaluated the value of our marketable securities. When assessing marketable securities for other-than-temporary declines in value, we considered several factors. These factors included: 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 had 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 credit 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 accounts receivable are considered when determining the required allowance for doubtful accounts. Based on

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 credit returns and pricing adjustments are established based on an analysis of historical patterns of credit returns and price adjustments compared to received credit returns and distribution sales for the current period. Estimated reserves for future credit returns and price adjustments are charged against revenue in the same period as the corresponding sales are recorded. Estimated sales returns for our distributor stock rotation program are accounted for under the guidance of Accounting Standard Codification (ASC) 845 Nonmonetary Transactions.

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 years to ten years. Building improvements and buildings are depreciated over ten years 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 a straight-line basis over their estimated useful lives of three years to 14.5 years. 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. Impairment losses, if any, are recorded in the period the impairment is identified. There were no impairments identified in fiscal 2020, 2019 or 2018.

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 Products & Services segment and our IoT Solutions segment (see Note 4 to the consolidated financial statements). As a result, we concluded that the IoT Products & Services segment and the IoT Solutions 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, including goodwill. If the carrying amount of a reporting unit is higher than its estimated fair value, then an 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.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 our prior acquisitions. 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.

Results of our Fiscal 2020 Annual Impairment Test

We had a total of $157.1 million of goodwill for the IoT Products & Services reporting unit and $49.6 million of goodwill for the IoT Solutions reporting unit as of June 30, 2020. At June 30, 2020, fair value exceeded the carrying value by more than 10% for both reporting units. Implied fair values for both reporting units were each calculated on a standalone basis using a weighted combination of the income approach and market approach. The implied fair values of each reporting unit were added together to get an indicated value of total equity to which a range of indicated value of total equity was derived. This range was compared to the total market capitalization of $338.2 million as of June 30, 2020. This implied a range of control premiums of 17.0% to 29.1%. This range of control premiums fell below the control premiums observed in the last five years in the communications equipment industry. As a result, the market capitalization reconciliation analysis proved support for the reasonableness of the fair values estimated for each individual reporting unit.

During the fourth quarter of fiscal 2020, we assessed various qualitative factors to determine whether or not an additional goodwill impairment assessment was required as of September 30, 2020, and we concluded that no additional impairment assessment was required.

Assumptions and estimates to determine fair values under the income and market approaches are complex and often subjective. They can be affected by a variety of factors. These include external factors such as industry and economic trends. They also include internal factors such as changes in our business strategy and our internal forecasts. Changes in circumstances or a potential event could negatively affect the estimated fair values. We will continue to monitor potential COVID-19 industry and demand impacts as this could potentially affect our cash flows and market capitalization. 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 year 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

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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.

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/original equipment manufacturer (“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 credit returns and pricing adjustments are established based on an analysis of historical patterns of credit returns and price adjustments compared to received credit returns and distribution sales for the current period. Estimated reserves for future credit 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 credit returns and pricing adjustments could result in a material change to our consolidated results of operations or financial position. Estimated sales returns for our distributor stock rotation program are accounted for under the guidance of ASC 845 Nonmonetary Transactions.

Equipment revenue from SmartSense by Digi® within our IoT Solutions segment is recognized upon shipment of the equipment to a customer. Installation service charges from these sales are recorded when the product is installed.

Subscription and Support Services Revenue

We 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.

Our SmartSense by Digi® subscription revenue is recorded on a monthly basis. These subscriptions are generally in a range from one year 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.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 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. Assets and liabilities of these operations are translated at the exchange rates in effect at the end of each reporting period. For our 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 2020, 2019 and

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2018 there were net transaction (losses) gains of $(0.6) million, $0.4 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.

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,
	2020		2019		2018
Numerator:


Net income	$	8,411	$	9,958	$	1,631
Denominator:
Denominator basic net income per common share — weighted average shares outstanding	28,849		27,905		27,083
Effect of dilutive securities:
Stock options and restricted stock units	697		649		569
Denominator diluted net income per common share — adjusted weighted average shares	29,546		28,554		27,652




Net income per common share, basic	$	0.29	$	0.36	$	0.06



Net income per common share, diluted	$	0.28	$	0.35	$	0.06

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, 2020, 2019 and 2018, such excluded stock options were 1,143,411, 744,513 and 925,063, respectively.

Recent Accounting Developments

Adopted

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), which provides for comprehensive changes to lease accounting. The standard 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 that applies the new standard to all applicable leases existing at the date of initial application and not restating comparative periods. We have completed our implementation efforts. These efforts included identification and analysis of our lease portfolio, analysis and evaluation of the new reporting and disclosure requirements of the new guidance, and an evaluation of our lease-

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

related processes and internal controls. The adoption of this standard resulted in the recognition of a right-of-use asset included in other non-current assets of approximately $14.1 million. It also resulted in a lease liability of approximately $17.9 million

included in other current liabilities and other non-current liabilities. Both of these were recorded on our Consolidated Balance Sheet in the first quarter of fiscal 2020. 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 also elected the practical expedient to use hindsight in determining the lease term when considering options to extend or terminate a lease, options to purchase the underlying asset, and in assessing the impairment of right-of-use assets. The adoption of this standard did not have a significant impact on our Consolidated Statements 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 control over financial reporting.

Not Yet Adopted

In August 2018, FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance changes the disclosure requirements on fair value measurements. We will adopt this standard in the first quarter of fiscal 2021. We do not expect this standard to have a material impact on our consolidated financial statements.

In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The amendments in this update replace 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. We will adopt this standard in the first quarter of fiscal 2021, following the modified-retrospective approach. We do not expect this standard to have a material impact on our consolidated financial statements.

Acquisitions

12 Months Ended

Sep. 30, 2020

Business Combinations [Abstract]

ACQUISITIONS

Fiscal 2020 Acquisition

Acquisition of Opengear, Inc.

On December 13, 2019, we completed our acquisition of Opengear, Inc. ("Opengear"), a New Jersey-based provider of secure IT infrastructure products and software. Opengear results are included in our consolidated financial statements within our IoT Products & Services segment.

The terms of the acquisition included an upfront cash payment as well as contingent consideration comprised of future earn-out payments. We funded the closing of the acquisition with cash of $148.1 million comprised of cash on hand and proceeds from our credit facility (see Note 8 to the consolidated financial statements). The earn-out payments are based on revenue performance from Opengear for the twelve-month periods ended December 31, 2019 and ending December 31, 2020. The cumulative amount of these earn-outs for the periods ended December 31, 2019 and December 31, 2020, will not exceed $5.0 million and $10.0 million, respectively. We paid the first installment of $0.9 million for the period ended December 31, 2019 during the third quarter of fiscal 2020. The fair value of the remaining contingent consideration was $4.2 million at September 30, 2020 (see Note 8 to the consolidated financial statements).

For tax purposes, this acquisition is treated as a stock acquisition. The goodwill therefore is not deductible. We believe this is a complementary acquisition for us as it significantly enhances our IoT Products & Services segment by providing secure, resilient access and automation to critical IT infrastructure.

The Opengear acquisition has been accounted for using the acquisition method of accounting. This requires, among other things, that assets acquired and liabilities assumed pursuant to the purchase agreement be recognized at fair value as of the acquisition date.

2. ACQUISITIONS (CONTINUED)

The following table summarizes the final fair values of Opengear assets acquired and liabilities assumed as of the acquisition date (in thousands):


Cash	$	148,058

Contingent consideration	5,100


Total	$	153,158

Fair value of net tangible assets acquired	$	19,217
Identifiable intangible assets:
Customer relationships	79,000
Purchased and core technology	18,100
Trademarks	8,000
Deferred tax liability on identifiable intangible assets	(27,401)
Goodwill	56,242
Total	$	153,158

The Consolidated Balance Sheet as of September 30, 2020 reflects the final allocation of the purchase price to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Included in the fair value of net tangible assets acquired are $1.4 million of right-of-use assets included in other non-current assets and $1.7 million of lease liability included in other current and non-current liabilities associated with Opengear's operating leases.

The weighted average useful life for all the identifiable intangibles listed above is estimated to be 13.4 years. For purposes of determining fair value, the existing customer relationships identified above are assumed to have a useful life of 14.5 years, purchased and core technology is assumed to have useful life of 9.0 years and trademarks are assumed to have a useful life of 12.0 years. 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. The identifiable intangible assets are amortized using the straight-line method. This reflects the pattern in which the assets are expected to be consumed.

Costs directly related to the acquisition of $0.3 million incurred in the fourth quarter of fiscal 2019 and $2.7 million incurred in fiscal 2020 have been charged directly to operations and are included in general and administrative expenses in our Consolidated Statements of Operations. These acquisition costs include legal, accounting, integration, valuation and investment banking fees.

The following consolidated pro forma information is presented as if the acquisition had occurred on October 1, 2018 (in thousands):


	Fiscal year ended September 30,
		2020		2019
Net sales		$	294,167	$	308,986
Net income		$	14,366	$	10,417
Net income per share - basic		$	0.50	$	0.37
Net income per share - diluted		$	0.49	$	0.36

Pro forma net income has been adjusted to include interest expense related to debt incurred as a result of the acquisition as well as amortization on the fair value of the intangibles acquired. It also has been adjusted to assume the acquisition-related costs of $3.1 million were incurred as of the first quarter of fiscal 2019.

Given the success of our efforts to rapidly integrate the workforce, customer offerings, technology, and reporting capabilities of Opengear with that of our other components in our IoT Products & Services business, along with the inherent complementary synergies gained from doing so, it is impractical for us to present Opengear specific results otherwise required by GAAP.

2. ACQUISITIONS (CONTINUED)

Fiscal 2018 Acquisitions

Acquisition of Accelerated Concepts, Inc.

On January 22, 2018, we purchased all the outstanding stock of Accelerated Concepts, Inc. ("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 were scheduled to be paid in two installments and the payment amount, if any, was to 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 was based on revenues from January 22, 2019 through January 21, 2020. If certain revenue thresholds were met, the cumulative amount of these earn-outs could have been $6.5 million. In April 2019, we paid $3.5 million for the first installment. In April 2020, we paid $2.4 million for the remaining contingent consideration (see Note 8 to the consolidated financial statements).

Acquisition of TempAlert LLC

On October 20, 2017, we purchased all the outstanding interests of TempAlert LLC ("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 was scheduled to be paid after December 31, 2019, which was the end of the earn-out periods. No payment was earned for the periods ended December 31, 2018 or December 31, 2019.

Goodwill and other Identifiable Intangible Assets

12 Months Ended

Sep. 30, 2020

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, 2020 and 2019 were comprised of the following (in thousands):


	September 30, 2020						September 30, 2019
	Gross carrying amount		Accum. amort.		Net		Gross carrying amount		Accum. amort.		Net
Purchased and core technology	$	76,011	$	(55,482)	$	20,529	$	57,699	$	(50,986)	$	6,713
License agreements	112		(112)		—		102		(74)		28
Patents and trademarks	22,836		(13,535)		9,301		14,577		(11,970)		2,607
Customer relationships	125,500		(34,232)		91,268		46,315		(25,266)		21,049
Non-compete agreements	600		(450)		150		600		(330)		270
Order backlog	—		—		—		1,800		(1,800)		—
Total	$	225,059	$	(103,811)	$	121,248	$	121,093	$	(90,426)	$	30,667

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 2020, 2019 and 2018 was as follows (in thousands):


Fiscal year	Total
2020	$	14,754
2019	$	8,818
2018	$	9,435

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
2021	$	15,558
2022	$	14,714
2023	$	12,518
2024	$	11,815
2025	$	8,358

Goodwill

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


	IoT Products & Services		IoT Solutions		Total
Balance on September 30, 2018	$	104,358	$	50,177	$	154,535

Foreign currency translation adjustment	(839)		(274)		(1,113)
Balance on September 30, 2019	$	103,519	$	49,903	$	153,422
Acquisition	56,242		—		56,242
Foreign currency translation adjustment	604		(133)		471
Balance at September 30, 2020	$	160,365	$	49,770	$	210,135

No goodwill impairment has been recorded in any period presented.

Segment Information and Major Customers

12 Months Ended

Sep. 30, 2020

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, discrete financial information is available through gross profit for both segments and the Chief Operating Decision Maker is reviewing both segments’ financial information (through gross profit) separately to make decisions about the allocation of resources.

IoT Products & Services

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

•Cellular routers;

•OEM Solutions which include Radio frequency ("RF") products which include our Digi XBee® Networking solutions as well as other RF solutions, embedded products which include Digi Connect®, ConnectCore® and Rabbit® embedded systems on module and single board computers;

•Infrastructure management products which include console and serial servers and USB connected products;

•Console Servers which is comprised of our Network Resilience Platform and includes Smart Out-of-Band and NetOps Console Servers managed by our Lighthouse software.

•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, healthcare (primarily pharmacies) and supply chain. 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 gross profit. IoT Solutions revenue includes product, service and subscription revenue. .

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


	Fiscal year ended September 30,
		2020		2019		2018
Revenue
IoT Products & Services		$	249,530	$	215,287	$	201,506
IoT Solutions		29,741		38,916		25,387
Total revenue		$	279,271	$	254,203	$	226,893
Gross profit
IoT Products & Services		$	129,349	$	100,522	$	97,895
IoT Solutions		14,623		18,513		11,159
Total gross profit		$	143,972	$	119,035	$	109,054
Depreciation and amortization
IoT Products & Services		$	11,521	$	6,102	$	6,040
IoT Solutions		7,778		7,294		6,744
Total depreciation and amortization		$	19,299	$	13,396	$	12,784

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


	Fiscal year ended September 30,
	2020		2019		2018
IoT Products & Services	$	878	$	8,863	$	1,773
IoT Solutions	21		472		69
Total expended for property, plant and equipment	$	899	$	9,335	$	1,842

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


	As of September 30,
	2020		2019
IoT Products & Services	$	387,578	$	215,651
IoT Solutions	86,975		90,255
Unallocated*	54,129		92,792
Total assets	$	528,682	$	398,698

*Unallocated consists of cash and cash equivalents.

4. SEGMENT INFORMATION AND MAJOR CUSTOMERS (CONTINUED)

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


	As of September 30,
	2020		2019
United States	$	11,297	$	13,400
International, primarily Europe	210		457
Total net property, equipment and improvements	$	11,507	$	13,857

Our U.S. export sales represented 25.1%, 28.5% and 30.1% of revenue for the fiscal years ended September 30, 2020, 2019 and 2018. No single customer exceeded 10% of revenue for any of the periods presented. At September 30, 2020, we had one customer, whose accounts receivable balance represented 17.2% of total accounts receivable. At September 30, 2019, we had one customer, whose accounts receivable balance represented 14.7% of total accounts receivable.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Subparagraph (e)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 32
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Sale of Building	12 Months Ended
Sale of Building	Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]
SALE OF BUILDING	SALE OF BUILDINGOn 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. 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, 2020

Selected Balance Sheet Data [Abstract]

SELECTED BALANCE SHEET DATA

SELECTED BALANCE SHEET DATA (in thousands)


	As of September 30,
	2020		2019
Accounts receivable, net:
Accounts receivable	$	65,027	$	60,062
Less allowance for doubtful accounts	3,778		968
Less reserve for future credit returns and pricing adjustments	2,022		2,677
Total accounts receivable, net	$	59,227	$	56,417

Inventories:
Raw materials	$	14,009	$	12,308
Work in process	—		565
Finished goods	37,559		26,891
Total inventories	$	51,568	$	39,764

Property, equipment and improvements, net:
Land	$	570	$	570
Buildings	2,338		2,338
Improvements	7,844		7,646
Equipment	17,153		17,440
Purchased software	3,770		4,030
Furniture and fixtures	3,236		2,963
Subscriber assets	5,104		3,750
Total property, equipment and improvements, gross	40,015		38,737
Less accumulated depreciation and amortization	28,508		24,880
Total property, equipment and improvements, net	$	11,507	$	13,857

Fair Value Measurements

12 Months Ended

Sep. 30, 2020

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 2020.

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, 2020 using:
	Total carrying value at September 30, 2020		Quoted price in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)







Liabilities:
Contingent consideration on acquired business	$	4,228	$	—	$	—	$	4,228
Total liabilities measured at fair value	$	4,228	$	—	$	—	$	4,228


			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 businesses	$	5,407	$	—	$	—	$	5,407
Total liabilities measured at fair value	$	5,407	$	—	$	—	$	5,407

In connection with the October 2015 acquisition of Bluenica, we may be required to make contingent payments over a period of up to 4 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. We paid $0.5 million in fiscal 2017, no payments in fiscal 2018, $2.2 million in fiscal 2019 and the final installment of $2.9 million in fiscal 2020.

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 upon acquisition. No contingent consideration was earned.

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 was $2.3 million. We paid the first installment of $3.5 million in fiscal 2019 and the final installment of $2.4 million in the third quarter of fiscal 2020.

In connection with our acquisition of Opengear, we agreed to make contingent payments, based upon certain revenue thresholds (see Note 2 to the consolidated financial statements). We paid the first installment of $0.9 million during the third quarter of fiscal 2020. The fair value of the remaining liability for contingent consideration for the acquisition of Opengear was $4.2 million at September 30, 2020.

7. FAIR VALUE MEASUREMENTS (CONTINUED)

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,
	2020		2019
Fair value at beginning of period	$	5,407	$	10,065
Purchase price contingent consideration	5,100		—
Contingent consideration payments	(6,151)		(5,848)
Change in fair value of contingent consideration	(128)		1,190
Fair value at end of period	$	4,228	$	5,407

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, 2020 based on the probability of achieving the specified revenue thresholds of 72% for Opengear. As of September 30, 2020, contingent consideration associated with the acquisition of Opengear remains subject to future performance through December 31, 2020.

- Definition

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

Debt

12 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

DEBT

INDEBTEDNESS

In connection with our acquisition of Opengear, we entered into a syndicated credit agreement with BMO Harris Bank N.A. ("BMO") on December 13, 2019. This agreement provides us with committed credit facilities (the "Credit Facility") totaling $150 million. The Credit Facility includes: (i) a $50 million term loan (the "Term Loan") and (ii) a $100 million revolving loan (the "Revolving Loan").

Prior to May 4, 2020, borrowings under the Credit Facility bore interest rates based on an underlying variable benchmark plus applicable margin based on our total leverage ("ABR"); this interest rate was reset quarterly. Effective May 4, 2020, borrowings under the Credit Facility bear a variable interest rate of LIBOR plus an applicable margin spread from 3.25% to 1.25%. The amount of the applicable margin spread is a function of our leverage ratio and is reset monthly. In addition to paying interest on the outstanding balance under the Credit Facility, we are required to pay a commitment fee on the non-utilized commitments thereunder which is also reported in interest expense. Our weighted average interest rate at September 30, 2020 was 0.7%.

We also incurred debt issuance costs under the Credit Facility of $2.6 million in the first quarter of fiscal 2020. These issuance costs are being amortized using the straight-line method over the term of the loan and reported in interest expense.

Amounts under the Term Loan will be repaid in quarterly installments on the last day of each fiscal quarter. Amortization is 5% in the first two years, 7.5% in the next two years and 10% in the final year. The remaining outstanding balance will mature on December 13, 2024. The Revolving Loan is due in a lump sum payment at maturity on December 13, 2024.

The fair values of the Term Loan and Revolving Loan approximated carrying value at September 30, 2020.

The following table is a summary of our long-term indebtedness at September 30, 2020 (in thousands):


Revolving loan	$	15,000
Term loan	48,125
Total loans	63,125
Less unamortized issuance costs	(2,173)
Less current maturities of long-term debt	(1,972)
Total long-term debt, net of current portion	$	58,980

8. INDEBTEDNESS (CONTINUED)

The following table is a summary of future maturities of our aggregate long-term debt at September 30, 2020 (in thousands):



2021	$	2,500
2022	3,438
2023	3,750
2024	4,687
2025	48,750
Total long-term debt	$	63,125

Covenants and Security Interest

The agreements governing the Credit Facility contain a number of covenants. Among other thing, these covenants require us to maintain certain financial ratios (net leverage ratio and minimum fixed charge ratio). At September 30, 2020, we were in compliance with our debt covenants. Amounts borrowed under the Credit Facility are secured by substantially all of our assets.

Paycheck Protection Program Loan

On April 14, 2020, we were granted a loan for $9.0 million under the Paycheck Protection Program ("PPP") established as part of the Coronavirus Aid, Relief and Economic Security Act ("CARES Act"). Based on our evaluation of additional rules for the PPP established after the grant acceptance, on May 4, 2020 we voluntarily repaid the full amount of the loan of $9.0 million, plus interest.

Product Warranty Obligation

12 Months Ended

Sep. 30, 2020

Product Warranties Disclosures [Abstract]

PRODUCT WARRANTY OBLIGATION

The following table summarizes the activity associated with the product warranty accrual (in thousands) and is listed on our Consolidated Balance Sheets within current liabilities:


	Balance at		Warranties		Settlements		Balance at
Fiscal year	October 1		accrued		made		September 30
2020	$	1,012	$	666	$	(736)	$	942
2019	$	1,172	$	305	$	(465)	$	1,012
2018	$	987	$	759	$	(574)	$	1,172

Leases

12 Months Ended

Sep. 30, 2020

Leases [Abstract]

LEASES

All of our leases are operating leases and primarily consist of leases for office space. For any lease with an initial term in excess of twelve months, the related lease assets and lease liabilities are recognized on our Consolidated Balance Sheets as either operating or financing leases at the inception of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components. We have elected to combine lease and non-lease components for all classes of assets. Leases with an initial term of twelve months or less are not recorded on our Consolidated Balance Sheets. Instead we recognize lease expense for these leases on a straight-line basis over the lease term.

Operating lease assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments. These assets and liabilities are recognized based on the present value of future payments over the lease term at the commencement date. We generally use a collateralized incremental borrowing rate based on information available at the commencement date, including the lease term, in determining the present value of future payments. When determining our right-of-use asset, we generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised.

Our leases typically require payment of real estate taxes and common area maintenance and insurance. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.

10. LEASES (CONTINUED)

The following table shows the supplemental balance sheet information related to our leases (in thousands):


	Balance Sheet Location	September 30, 2020
Assets
Operating leases	Other non-current assets	$	14,334
Total lease assets		$	14,334

Liabilities

Operating leases	Other current liabilities	$	2,527

Operating leases	Other non-current liabilities	16,193
Total lease liabilities		$	18,720

The following were the components of our lease cost (in thousands):


	Statement of Operations Location	Fiscal year ended September 30, 2020
Operating lease cost	Cost of goods sold and SG&A	$	3,341
Variable lease cost	Cost of goods sold and SG&A	744
Short-term lease cost	Cost of goods sold and SG&A	175
Total lease cost		$	4,260

The following table presents supplemental information related to operating leases (in thousands):


	Fiscal year ended September 30, 2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,893
Right-of-use assets obtained in exchange for new operating lease liabilities	$	1,073


	September 30, 2020
Weighted average remaining lease term - operating leases	5.6 years
Weighted average discount rate - operating leases	4.80	%

The table below reconciles the undiscounted cash flows for each of the first five years as well as all the remaining years to the operating lease liabilities recorded on the Consolidated Balance Sheet as of September 30, 2020 (in thousands):


Fiscal year	Amount

2021	$	3,335
2022	2,932
2023	2,669
2024	2,452
2025	2,348
Thereafter	9,219
Total future undiscounted lease payments	22,955
Less imputed interest	(4,235)
Total reported lease liability	$	18,720

In July 2020, we signed a lease agreement for ten years in Sandy, Utah. We have $4.8 million of future minimum lease obligations under this new lease for 35,466 square feet of office space. Included in this agreement is $1.0 million of tenant improvement allowance. This agreement is not included on our Consolidated Balance Sheet nor in the above table as the lessor has not made the underlying asset available for use.

10. LEASES (CONTINUED)

As follows, aggregate annual future minimum rental commitments under operating leases with noncancelable terms of more than one year at September 30, 2019 were reported under previous lease accounting standards (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

Restructuring

12 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

RESTRUCTURING

2020 Restructuring

In second quarter of fiscal 2020, we recorded and re-aligned our product management group within IoT Products & Services segment and eliminated two employment positions. We recorded $38 thousand for employee termination charges. This was fully paid during the second quarter of fiscal 2020.

In the third quarter of fiscal 2020, we recorded $95 thousand of restructuring for employee termination charges primarily within our IoT Solutions segment. This resulted in the elimination of 22 employment positions. This restructuring was completed in the fourth quarter of fiscal 2020.

Manufacturing Transition

As announced in April 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 in our IoT Product and Services segment. The payments associated with these charges were completed in the first half of fiscal 2019.

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 in fiscal 2017, which included $2.3 million of employee costs and $0.2 million of contract termination costs during the third quarter of fiscal 2017 in our IoT Product and Services segment. 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.

11. RESTRUCTURING (CONTINUED)

Below is a summary of the restructuring charges and other activity within the restructuring accrual (in thousands):


	2020 Restructuring		Manufacturing Transition		2017 Restructuring
	Employee Termination Costs		Employee Termination Costs		Employee Termination Costs		Other		Total
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	$	—	$	—	$	—	$	—	$	—
Restructuring charge	133		—		—		—		133
Payments	(117)		—		—		—		(117)
Reversals	(16)		—		—		—		(16)
Balance at September 30, 2020	$	—	$	—	$	—	$	—	$	—

Revenue

12 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

REVENUE

Revenue Disaggregation

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


	Fiscal year ended September 30,
($ in thousands)	2020		2019		2018
North America, primarily the United States	$	213,487	$	184,022	$	161,924
Europe, Middle East & Africa	40,076		39,896		39,211
Rest of world	25,708		30,285		25,758
Total revenue	$	279,271	$	254,203	$	226,893

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


	Fiscal year ended September 30,
($ in thousands)	2020		2019		2018
Transferred at a point in time	$	253,371	$	231,387	$	212,448
Transferred over time	25,900		22,816		14,445
Total revenue	$	279,271	$	254,203	$	226,893

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 $2.0 million at September 30, 2020 and $2.1 million at September 30, 2019 and is included in property, equipment and improvements, net. Depreciation expense for these subscriber assets was

12. REVENUE (CONTINUED)

$1.5 million, $1.1 million and $0.5 million for fiscal 2020, 2019 and 2018, 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)	2020
Unearned revenue, beginning of period	$	5,025
Billings	35,213
Revenue recognized	(30,897)
Unearned revenue, end of period	$	9,341

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, 2020 approximately $14.0 million of revenue is expected to be recognized from remaining performance obligations for subscriptions contracts. We expect to recognize revenue on approximately $10.0 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 years to seven years.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 12
-Subparagraph (b)
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Section 50
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Income Taxes

12 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

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


	Fiscal year ended September 30,
	2020		2019		2018
United States	$	3,756	$	7,981	$	(2,427)
International	3,707		3,164		5,677
Income before income taxes	$	7,463	$	11,145	$	3,250

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


	Fiscal year ended September 30,
	2020		2019		2018
Current:
Federal	$	709	$	950	$	526
State	572		290		57
Foreign	1,128		746		1,412
Deferred:
U.S.	(2,911)		(825)		(536)
Foreign	(446)		26		160
Income tax (benefit) expense	$	(948)	$	1,187	$	1,619

13. INCOME TAXES (CONTINUED)

Net deferred tax (liability) asset consists of (in thousands):


	As of September 30,
	2020		2019

Non-current deferred tax asset	$	389	$	7,330

Non-current deferred tax liability	(17,171)		(261)
Net deferred tax (liability) asset	$	(16,782)	$	7,069

Depreciation and amortization	$	(1,037)	$	(480)
Lease asset	(3,415)		—
Lease liability	4,477		—
Inventories	979		536
Compensation costs	3,698		3,675
Other accruals	3,985		3,870
Tax credit carryforwards	6,021		4,911
Valuation allowance	(4,372)		(3,810)
Identifiable intangible assets	(27,118)		(1,633)

Net deferred tax (liability) asset	$	(16,782)	$	7,069

As of September 30, 2020, we had $3.1 million of tax carryforwards (net of reserves) related to federal and state research and development tax credits. We also had $2.9 million of carryforwards consisting of a U.S. capital loss of $2.6 million, non-U.S. net operating losses of $0.2 million and foreign tax credits of $0.1 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 2034. Our U.S. capital loss carryforward will expire in fiscal tax year 2021.

Our valuation allowance for certain U.S. and foreign locations was $4.4 million at September 30, 2020 and $3.8 million at September 30, 2019. The increase in valuation allowance is primarily the result of prior period adjustments to the valuation allowance and 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.

13. INCOME TAXES (CONTINUED)

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


	Fiscal year ended September 30,
	2020		2019		2018
Statutory income tax amount	$	1,567	$	2,341	$	809
Increase (decrease) resulting from:
State taxes, net of federal benefits	392		196		(71)
Manufacturing deduction	—		—		(364)

Transaction costs	143		—		79
Employee stock purchase plan	127		59		56
Foreign operations	431		225		318
Non-deductible executive compensation	115		171		27
Change in valuation allowance	173		520		(994)
Utilization of research and development tax credits	(2,881)		(2,173)		(1,971)
One-time transition tax	—		—		250
Deferred balance sheet remeasure	—		9		2,727
ASU 2016-09 excess stock compensation	(673)		(56)		643
Contingent consideration	(27)		250		388
Changes from provision to return	(111)		(511)		(554)
Adjustment of tax contingency reserves	151		146		193
U.S. deduction for foreign export sales	(355)		(146)		—


Global intangible low-taxed income	31		162		—
Other, net	(31)		(6)		83
Income tax (benefit) expense	$	(948)	$	1,187	$	1,619

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 tax expense related to the effects on our existing deferred tax balances and the one-time transition tax which totaled $3.0 million in fiscal 2018. 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.

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


	Fiscal year ended September 30,
	2020		2019		2018
Unrecognized tax benefits at beginning of fiscal year	$	1,713	$	1,561	$	1,335
Increases related to:
Prior year income tax positions	756		9		39
Current year income tax positions	425		314		315
Decreases related to:
Prior year income tax positions	—		(34)		—
Settlements	(7)		—		—
Expiration of statute of limitations	(287)		(137)		(128)
Unrecognized tax benefits at end of fiscal year	$	2,600	$	1,713	$	1,561

13. INCOME TAXES (CONTINUED)

The total amount of unrecognized tax benefits ("UTB") at September 30, 2020 that, if recognized, would affect our effective tax rate was $2.4 million. We expect that it is reasonably possible that the total amounts of UTB will decrease by approximately $0.1 million over the next 12 months due to the expiration of various statutes of limitations. Of the $2.6 million of UTB, $1.9 million is included in non-current income taxes payable and $0.7 million is included with non-current deferred tax assets on the Consolidated Balance Sheets at September 30, 2020.

We recognize interest and penalties related to income tax matters in income tax expense. During fiscal 2020 and 2019, 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, 2020 and 2019. 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 2016. We are currently under U.S. federal examination for fiscal years 2017 and 2018, and there is very limited audit activity of our income tax returns in U.S. state jurisdictions or international jurisdictions.

At September 30, 2020, 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 prior fiscal years 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, 2020, we are permanently reinvested with respect to previously non-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.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Stock-Based Compensation

12 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

Stock-based awards were granted under the 2020 Omnibus Incentive Plan (the "2020 Plan") beginning January 29, 2020. Prior to that date such awards made in fiscal 2020 were granted under the 2019 Omnibus Incentive Plan (the "2019 Plan"). Upon stockholder approval of the 2020 Plan, we ceased granting awards under the 2019 Plan. Shares subject to awards under the 2019 Plan or any 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 2020 Plan. The authority to grant options under the 2020 Plan and to set other terms and conditions rests with the Compensation Committee of the Board of Directors.

The 2020 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 2020 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 January over a four-year period. The 2020 Plan is scheduled to expire on January 28, 2030. Options under the 2020 Plan can be granted as either incentive stock options or non-statutory stock options. The exercise price of options and the grant date price of RSUs is determined by our Compensation Committee but will not be less than the fair market value of our common stock based on the closing price as of the date of grant. Upon exercise of options or settlement of vested restricted stock units, we issue new shares of stock. As of September 30, 2020, there were approximately 1,209,150 shares available for future grants under the 2020 Plan.

14. STOCK-BASED COMPENSATION (CONTINUED)

The 2019 Plan, under which grants ceased upon approval of the 2020 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 2019 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 December over a four-year period. Awards may no longer be granted under the 2019 Plan as grants ceased upon approval of the 2020 Plan effective January 29, 2020 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 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 2020, 2019 and 2018 our employees forfeited 103,492, 93,128 and 74,204 shares, respectively in order to satisfy $1.8 million, $1.1 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 December 10, 2019, 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 29, 2020, increased the total number of shares to 3,425,000 that may be purchased under the plan. Employee contributions to the Purchase Plan were $1.1 million, $1.1 million and $1.1 million in fiscal 2020, 2019 and 2018, respectively. Pursuant to the Purchase Plan, 117,826, 111,036, and 125,446 shares of common stock were issued to employees during fiscal 2020, 2019 and 2018, respectively. Shares are issued under the Purchase Plan from treasury stock. As of September 30, 2020, 711,714 shares of common stock were available for future issuances under the Purchase Plan.

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


	Fiscal year ended September 30,
	2020		2019		2018
Cost of sales	$	291	$	174	$	195
Sales and marketing	2,318		1,708		1,492
Research and development	1,197		996		516
General and administrative	3,431		2,777		2,651
Stock-based compensation before income taxes	7,237		5,655		4,854
Income tax benefit	(1,523)		(1,174)		(1,017)
Stock-based compensation after income taxes	$	5,714	$	4,481	$	3,837

14. STOCK-BASED COMPENSATION (CONTINUED)

Stock Options

Below is a summary of our stock options as of September 30, 2020 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, 2019	3,348	$10.85
Granted	796	16.56
Exercised	(583)	10.12
Forfeited / Canceled	(168)	13.16
Balance at September 30, 2020	3,393	$12.20	3.9	$	12,790

Exercisable at September 30, 2020	2,115	$10.80	2.9	$	10,207

(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $15.63 as of September 30, 2020, which would have been received by the option holders had all option holders exercised their options as of that date.

The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. The total intrinsic value of all options exercised during each of the twelve months ended September 30, 2020, 2019 and 2018 was $3.7 million, $2.1 million and $1.2 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,
	2020		2019		2018
Weighted average per option grant date fair value	$	6.17	$	4.48	$	3.98
Assumptions used for option grants:
Risk free interest rate	0.37% - 1.73%		1.60% - 2.93%		2.12% - 2.89%
Expected term	6.00 years		6.00 years		6.00 years
Expected volatility	36% - 44%		33% - 35%		33% - 34%
Weighted average volatility	36%		34%		33%
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 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, 2020, the total unrecognized compensation cost related to non-vested stock-based compensation arrangements, net of expected forfeitures, was $6.0 million. The related weighted average period over which this cost is expected to be recognized was approximately 2.8 years.

14. STOCK-BASED COMPENSATION (CONTINUED)

As of September 30, 2020, 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	485	2.33	$	8.22	485	$	8.22
$9.04 - $10.33	542	3.61	$	10.04	427	$	9.98
$10.35 - $11.23	602	3.42	$	10.94	405	$	10.86
$11.24 - $12.63	620	3.79	$	12.08	448	$	12.17
$12.64 - $13.92	573	4.48	$	13.65	339	$	13.53
$13.93 - $17.94	536	6.05	$	17.62	11	$	14.75
$17.95 - $18.20	35	6.14	$	18.20	—	$	—
$7.40 - $18.20	3,393	3.98	$	12.20	2,115	$	10.80

The total grant date fair value of shares vested was $3.7 million, $3.5 million and $3.3 million in each of fiscal 2020, 2019 and 2018, respectively.

Non-vested Restricted Stock Units

Below is a summary of our non-vested restricted stock units as of September 30, 2020 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, 2019	888	$	11.65
Granted	516	$	14.86
Vested	(322)	$	11.78
Canceled	(110)	$	12.53
Nonvested at September 30, 2020	972	$	13.20

As of September 30, 2020, the total unrecognized compensation cost related to non-vested restricted stock units was $9.6 million. The related weighted average period over which this cost is expected to be recognized was approximately 1.4 years.

Common Stock Repurchase	12 Months Ended
Common Stock Repurchase	Sep. 30, 2020
Common Stock Repurchase [Abstract]
COMMON STOCK REPURCHASE	COMMON STOCK REPURCHASE Common Stock Repurchase Program On April 24, 2018 our Board of Directors authorized a program to repurchase up to $20.0 million of our common stock primarily to return capital to shareholders. This repurchase authorization expired on May 1, 2019. There were no shares repurchased under this program.

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Sep. 30, 2020
Retirement Benefits [Abstract]
EMPLOYEE BENEFIT PLANS	EMPLOYEE BENEFIT PLANS We currently have a savings and profit sharing plan pursuant to Section 401(k) of the Internal Revenue Code (the Code), whereby eligible employees may contribute up to 25% of their pre-tax earnings subject to certain limits under law. Prior to May 3, 2020, we provided a match of 100% on the first 3% of each employee’s bi-weekly contribution and a 50% match on the next 2% of each employee’s bi-weekly contribution. In addition, we may make contributions to the plan at the discretion of the Board of Directors. Effective May 3, 2020 we indefinitely suspended the employer matching contributions in 16. EMPLOYEE BENEFIT PLANS (CONTINUED) the United States and Canada. We provided matching contributions of $1.7 million for fiscal 2020, $1.8 million for fiscal 2019 and $1.6 million for fiscal 2018.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES Leases We lease certain of our buildings and equipment under noncancelable lease agreements. Please refer to Note 10 to our consolidated financial statements for additional information. Litigation 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 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, 2020

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 2020
Revenue	$	62,317	$	73,447	$	70,338	$	73,169
Gross profit	$	30,464	$	38,641	$	37,349	$	37,518


Net income (1)	$	208	$	2,004	$	1,766	$	4,433



Net income per common share - basic	$	0.01	$	0.07	$	0.06	$	0.15



Net income per common share - diluted	$	0.01	$	0.07	$	0.06	$	0.15

Fiscal 2019
Revenue	$	62,313	$	65,764	$	61,166	$	64,960
Gross profit	$	29,783	$	30,329	$	28,328	$	30,595


Net income	$	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

(1)During fiscal 2020, we recorded a discrete tax benefit of $1.0 million in the first quarter of fiscal 2020 resulting from excess tax benefits recognized on stock compensation and an adjustment of our state deferred tax rate due to the Opengear acquisition.

Subsequent Event	12 Months Ended
Subsequent Event	Sep. 30, 2020
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENTS Restructuring On October 7, 2020, our Board of Directors approved a reorganization of our IoT Products & Services business segment ("the plan"). The plan aligns the business segment's organization around product lines. Under the plan, we expect to eliminate 19. SUBSEQUENT EVENTS (CONTINUED) approximately 20 employment positions during the first quarter ending December 31, 2020. In connection with the plan, we expect to incur total restructuring charges in the range of $0.8 million to $0.9 million relating to cash severance expenses during the first fiscal quarter ended December 31, 2020.

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Sep. 30, 2020

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, 2020	$	3,810	$	670	$	—		$	108		$	4,372
September 30, 2019	$	3,291	$	529	$	—		$	10		$	3,810
September 30, 2018	$	5,952	$	521	$	—		$	3,182		$	3,291

Valuation account - doubtful accounts
September 30, 2020	$	968	$	2,534	$	—		$	(276)	(2)	$	3,778
September 30, 2019	$	785	$	635	$	—		$	452	(2)	$	968
September 30, 2018	$	341	$	729	$	40	(1)	$	325	(2)	$	785

Reserve for future credit returns and pricing adjustments
September 30, 2020	$	2,677	$	17,816	$	—		$	19,017		$	1,476
September 30, 2019	$	2,560	$	12,640	$	—		$	12,523		$	2,677
September 30, 2018	$	2,169	$	10,715	$	—		$	10,324		$	2,560

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

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

^[1],[2]

[1]	Recorded in Income tax (benefit) expense in our Consolidated Statements of Operations.
[2]	Uncollectible accounts charged against allowance, net of recoveries

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2020
Accounting Policies [Abstract]
Principles of Consolidation	Principles of ConsolidationThe 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	Reclassifications The subcategories within total revenue and total cost of sales were redefined in 2019 into "Product" and "Service". Fiscal 2018 hardware product and services and solutions amounts have been reclassified to conform to our fiscal 2020 and fiscal 2019 presentation.
Accounting Estimates	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 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 Marketable securities previously consisted of certificates of deposit, commercial paper, corporate bonds and government municipal bonds. All marketable securities were accounted for as available-for-sale and were 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 obtained quoted market prices and trading activity for each security when available. We obtained relevant information from our investment advisor and, if warranted, we may have reviewed the financial solvency of certain security issuers. We regularly monitored and evaluated the value of our marketable securities. When assessing marketable securities for other-than-temporary declines in value, we considered several factors. These factors included: 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 had occurred and is other-than-temporary, we would record a charge to other income, net.
Accounts Receivable	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 credit 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 accounts receivable are considered when determining the required allowance for doubtful accounts. Based on 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)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 credit returns and pricing adjustments are established based on an analysis of historical patterns of credit returns and price adjustments compared to received credit returns and distribution sales for the current period. Estimated reserves for future credit returns and price adjustments are charged against revenue in the same period as the corresponding sales are recorded. Estimated sales returns for our distributor stock rotation program are accounted for under the guidance of Accounting Standard Codification (ASC) 845 Nonmonetary Transactions.
Inventories	InventoriesInventories 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, 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 years to ten years. Building improvements and buildings are depreciated over ten years 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	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 a straight-line basis over their estimated useful lives of three years to 14.5 years. 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. Impairment losses, if any, are recorded in the period the impairment is identified.
Goodwill	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 Products & Services segment and our IoT Solutions segment (see Note 4 to the consolidated financial statements). As a result, we concluded that the IoT Products & Services segment and the IoT Solutions 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, including goodwill. If the carrying amount of a reporting unit is higher than its estimated fair value, then an 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. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 our prior acquisitions. 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.
Contingent Consideration	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	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 year 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 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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	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.
Revenue Recognition	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/original equipment manufacturer (“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 credit returns and pricing adjustments are established based on an analysis of historical patterns of credit returns and price adjustments compared to received credit returns and distribution sales for the current period. Estimated reserves for future credit 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 credit returns and pricing adjustments could result in a material change to our consolidated results of operations or financial position. Estimated sales returns for our distributor stock rotation program are accounted for under the guidance of ASC 845 Nonmonetary Transactions. Equipment revenue from SmartSense by Digi® within our IoT Solutions segment is recognized upon shipment of the equipment to a customer. Installation service charges from these sales are recorded when the product is installed. Subscription and Support Services Revenue We 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. Our SmartSense by Digi® subscription revenue is recorded on a monthly basis. These subscriptions are generally in a range from one year 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. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 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 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	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 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	Foreign Currency Translation Financial position and results of operations of our international subsidiaries are measured using local currencies as the 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 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 2020, 2019 and 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)2018 there were net transaction (losses) gains of $(0.6) million, $0.4 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	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.
Net Income Per Common Share	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.
Recent Accounting Developments	Recent Accounting Developments Adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), which provides for comprehensive changes to lease accounting. The standard 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 that applies the new standard to all applicable leases existing at the date of initial application and not restating comparative periods. We have completed our implementation efforts. These efforts included identification and analysis of our lease portfolio, analysis and evaluation of the new reporting and disclosure requirements of the new guidance, and an evaluation of our lease- 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) related processes and internal controls. The adoption of this standard resulted in the recognition of a right-of-use asset included in other non-current assets of approximately $14.1 million. It also resulted in a lease liability of approximately $17.9 million included in other current liabilities and other non-current liabilities. Both of these were recorded on our Consolidated Balance Sheet in the first quarter of fiscal 2020. 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 also elected the practical expedient to use hindsight in determining the lease term when considering options to extend or terminate a lease, options to purchase the underlying asset, and in assessing the impairment of right-of-use assets. The adoption of this standard did not have a significant impact on our Consolidated Statements 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 control over financial reporting. Not Yet Adopted In August 2018, FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance changes the disclosure requirements on fair value measurements. We will adopt this standard in the first quarter of fiscal 2021. We do not expect this standard to have a material impact on our consolidated financial statements. In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The amendments in this update replace 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. We will adopt this standard in the first quarter of fiscal 2021, following the modified-retrospective approach. We do not expect this standard to have a material impact on our consolidated financial statements.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

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,
	2020		2019		2018
Numerator:


Net income	$	8,411	$	9,958	$	1,631
Denominator:
Denominator basic net income per common share — weighted average shares outstanding	28,849		27,905		27,083
Effect of dilutive securities:
Stock options and restricted stock units	697		649		569
Denominator diluted net income per common share — adjusted weighted average shares	29,546		28,554		27,652




Net income per common share, basic	$	0.29	$	0.36	$	0.06



Net income per common share, diluted	$	0.28	$	0.35	$	0.06

Acquisitions (Tables)

12 Months Ended

Sep. 30, 2020

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the final fair values of Opengear assets acquired and liabilities assumed as of the acquisition date (in thousands):


Cash	$	148,058

Contingent consideration	5,100


Total	$	153,158

Fair value of net tangible assets acquired	$	19,217
Identifiable intangible assets:
Customer relationships	79,000
Purchased and core technology	18,100
Trademarks	8,000
Deferred tax liability on identifiable intangible assets	(27,401)
Goodwill	56,242
Total	$	153,158

Business Acquisition, Pro Forma Information

The following consolidated pro forma information is presented as if the acquisition had occurred on October 1, 2018 (in thousands):


	Fiscal year ended September 30,
		2020		2019
Net sales		$	294,167	$	308,986
Net income		$	14,366	$	10,417
Net income per share - basic		$	0.50	$	0.37
Net income per share - diluted		$	0.49	$	0.36

Goodwill and other Identifiable Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Amortizable Identifiable Intangible Assets

Amortizable identifiable intangible assets, net as of September 30, 2020 and 2019 were comprised of the following (in thousands):


	September 30, 2020						September 30, 2019
	Gross carrying amount		Accum. amort.		Net		Gross carrying amount		Accum. amort.		Net
Purchased and core technology	$	76,011	$	(55,482)	$	20,529	$	57,699	$	(50,986)	$	6,713
License agreements	112		(112)		—		102		(74)		28
Patents and trademarks	22,836		(13,535)		9,301		14,577		(11,970)		2,607
Customer relationships	125,500		(34,232)		91,268		46,315		(25,266)		21,049
Non-compete agreements	600		(450)		150		600		(330)		270
Order backlog	—		—		—		1,800		(1,800)		—
Total	$	225,059	$	(103,811)	$	121,248	$	121,093	$	(90,426)	$	30,667

Schedule of Amortization Expense

Amortization expense for fiscal years 2020, 2019 and 2018 was as follows (in thousands):


Fiscal year	Total
2020	$	14,754
2019	$	8,818
2018	$	9,435

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
2021	$	15,558
2022	$	14,714
2023	$	12,518
2024	$	11,815
2025	$	8,358

Schedule of Changes in Carrying Amount of Goodwill

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


	IoT Products & Services		IoT Solutions		Total
Balance on September 30, 2018	$	104,358	$	50,177	$	154,535

Foreign currency translation adjustment	(839)		(274)		(1,113)
Balance on September 30, 2019	$	103,519	$	49,903	$	153,422
Acquisition	56,242		—		56,242
Foreign currency translation adjustment	604		(133)		471
Balance at September 30, 2020	$	160,365	$	49,770	$	210,135

Segment Information and Major Customers (Tables)

12 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

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


	Fiscal year ended September 30,
		2020		2019		2018
Revenue
IoT Products & Services		$	249,530	$	215,287	$	201,506
IoT Solutions		29,741		38,916		25,387
Total revenue		$	279,271	$	254,203	$	226,893
Gross profit
IoT Products & Services		$	129,349	$	100,522	$	97,895
IoT Solutions		14,623		18,513		11,159
Total gross profit		$	143,972	$	119,035	$	109,054
Depreciation and amortization
IoT Products & Services		$	11,521	$	6,102	$	6,040
IoT Solutions		7,778		7,294		6,744
Total depreciation and amortization		$	19,299	$	13,396	$	12,784

Payments to Acquire Property, Plant and Equipment by Segment

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


	Fiscal year ended September 30,
	2020		2019		2018
IoT Products & Services	$	878	$	8,863	$	1,773
IoT Solutions	21		472		69
Total expended for property, plant and equipment	$	899	$	9,335	$	1,842

Schedule of Total Assets by Segment

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


	As of September 30,
	2020		2019
IoT Products & Services	$	387,578	$	215,651
IoT Solutions	86,975		90,255
Unallocated*	54,129		92,792
Total assets	$	528,682	$	398,698

*Unallocated consists of cash and cash equivalents.

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,
	2020		2019
United States	$	11,297	$	13,400
International, primarily Europe	210		457
Total net property, equipment and improvements	$	11,507	$	13,857

Selected Balance Sheet Data (Tables)

12 Months Ended

Sep. 30, 2020

Selected Balance Sheet Data [Abstract]

Schedule of Selected Balance Sheet Data

SELECTED BALANCE SHEET DATA (in thousands)


	As of September 30,
	2020		2019
Accounts receivable, net:
Accounts receivable	$	65,027	$	60,062
Less allowance for doubtful accounts	3,778		968
Less reserve for future credit returns and pricing adjustments	2,022		2,677
Total accounts receivable, net	$	59,227	$	56,417

Inventories:
Raw materials	$	14,009	$	12,308
Work in process	—		565
Finished goods	37,559		26,891
Total inventories	$	51,568	$	39,764

Property, equipment and improvements, net:
Land	$	570	$	570
Buildings	2,338		2,338
Improvements	7,844		7,646
Equipment	17,153		17,440
Purchased software	3,770		4,030
Furniture and fixtures	3,236		2,963
Subscriber assets	5,104		3,750
Total property, equipment and improvements, gross	40,015		38,737
Less accumulated depreciation and amortization	28,508		24,880
Total property, equipment and improvements, net	$	11,507	$	13,857

Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2020

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, 2020 using:
	Total carrying value at September 30, 2020		Quoted price in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)







Liabilities:
Contingent consideration on acquired business	$	4,228	$	—	$	—	$	4,228
Total liabilities measured at fair value	$	4,228	$	—	$	—	$	4,228


			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 businesses	$	5,407	$	—	$	—	$	5,407
Total liabilities measured at fair value	$	5,407	$	—	$	—	$	5,407

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,
	2020		2019
Fair value at beginning of period	$	5,407	$	10,065
Purchase price contingent consideration	5,100		—
Contingent consideration payments	(6,151)		(5,848)
Change in fair value of contingent consideration	(128)		1,190
Fair value at end of period	$	4,228	$	5,407

Debt (Tables)

12 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

The following table is a summary of our long-term indebtedness at September 30, 2020 (in thousands):


Revolving loan	$	15,000
Term loan	48,125
Total loans	63,125
Less unamortized issuance costs	(2,173)
Less current maturities of long-term debt	(1,972)
Total long-term debt, net of current portion	$	58,980

Schedule of Maturities of Long-term Debt [Table Text Block]

The following table is a summary of future maturities of our aggregate long-term debt at September 30, 2020 (in thousands):



2021	$	2,500
2022	3,438
2023	3,750
2024	4,687
2025	48,750
Total long-term debt	$	63,125

Product Warranty Obligation (Tables)

12 Months Ended

Sep. 30, 2020

Product Warranties Disclosures [Abstract]

Schedule of Product Warranty Accrual

The following table summarizes the activity associated with the product warranty accrual (in thousands) and is listed on our Consolidated Balance Sheets within current liabilities:


	Balance at		Warranties		Settlements		Balance at
Fiscal year	October 1		accrued		made		September 30
2020	$	1,012	$	666	$	(736)	$	942
2019	$	1,172	$	305	$	(465)	$	1,012
2018	$	987	$	759	$	(574)	$	1,172

Leases (Tables)

12 Months Ended

Sep. 30, 2020

Leases [Abstract]

Supplemental Balance Sheet Information

The following table shows the supplemental balance sheet information related to our leases (in thousands):


	Balance Sheet Location	September 30, 2020
Assets
Operating leases	Other non-current assets	$	14,334
Total lease assets		$	14,334

Liabilities

Operating leases	Other current liabilities	$	2,527

Operating leases	Other non-current liabilities	16,193
Total lease liabilities		$	18,720

Components of Lease Cost

The following were the components of our lease cost (in thousands):


	Statement of Operations Location	Fiscal year ended September 30, 2020
Operating lease cost	Cost of goods sold and SG&A	$	3,341
Variable lease cost	Cost of goods sold and SG&A	744
Short-term lease cost	Cost of goods sold and SG&A	175
Total lease cost		$	4,260

Supplemental Disclosures Leases

The following table presents supplemental information related to operating leases (in thousands):


	Fiscal year ended September 30, 2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,893
Right-of-use assets obtained in exchange for new operating lease liabilities	$	1,073


	September 30, 2020
Weighted average remaining lease term - operating leases	5.6 years
Weighted average discount rate - operating leases	4.80	%

Operating Lease Liability Maturity


Fiscal year	Amount

2021	$	3,335
2022	2,932
2023	2,669
2024	2,452
2025	2,348
Thereafter	9,219
Total future undiscounted lease payments	22,955
Less imputed interest	(4,235)
Total reported lease liability	$	18,720

Schedule of Future Minimum Rental Payments for Operating Leases


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

Restructuring (Tables)

12 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve

Below is a summary of the restructuring charges and other activity within the restructuring accrual (in thousands):


	2020 Restructuring		Manufacturing Transition		2017 Restructuring
	Employee Termination Costs		Employee Termination Costs		Employee Termination Costs		Other		Total
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	$	—	$	—	$	—	$	—	$	—
Restructuring charge	133		—		—		—		133
Payments	(117)		—		—		—		(117)
Reversals	(16)		—		—		—		(16)
Balance at September 30, 2020	$	—	$	—	$	—	$	—	$	—

Revenue (Tables)

12 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

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


	Fiscal year ended September 30,
($ in thousands)	2020		2019		2018
North America, primarily the United States	$	213,487	$	184,022	$	161,924
Europe, Middle East & Africa	40,076		39,896		39,211
Rest of world	25,708		30,285		25,758
Total revenue	$	279,271	$	254,203	$	226,893

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


	Fiscal year ended September 30,
($ in thousands)	2020		2019		2018
Transferred at a point in time	$	253,371	$	231,387	$	212,448
Transferred over time	25,900		22,816		14,445
Total revenue	$	279,271	$	254,203	$	226,893

Contract with Customer, Asset and Liability

Changes in unearned revenue were:


	Fiscal year ended September 30,
($ in thousands)	2020
Unearned revenue, beginning of period	$	5,025
Billings	35,213
Revenue recognized	(30,897)
Unearned revenue, end of period	$	9,341

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Taxes

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


	Fiscal year ended September 30,
	2020		2019		2018
United States	$	3,756	$	7,981	$	(2,427)
International	3,707		3,164		5,677
Income before income taxes	$	7,463	$	11,145	$	3,250

Schedule of Components of Income Tax Provision

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


	Fiscal year ended September 30,
	2020		2019		2018
Current:
Federal	$	709	$	950	$	526
State	572		290		57
Foreign	1,128		746		1,412
Deferred:
U.S.	(2,911)		(825)		(536)
Foreign	(446)		26		160
Income tax (benefit) expense	$	(948)	$	1,187	$	1,619

Schedule of Net Deferred Tax Asset

Net deferred tax (liability) asset consists of (in thousands):


	As of September 30,
	2020		2019

Non-current deferred tax asset	$	389	$	7,330

Non-current deferred tax liability	(17,171)		(261)
Net deferred tax (liability) asset	$	(16,782)	$	7,069

Depreciation and amortization	$	(1,037)	$	(480)
Lease asset	(3,415)		—
Lease liability	4,477		—
Inventories	979		536
Compensation costs	3,698		3,675
Other accruals	3,985		3,870
Tax credit carryforwards	6,021		4,911
Valuation allowance	(4,372)		(3,810)
Identifiable intangible assets	(27,118)		(1,633)

Net deferred tax (liability) asset	$	(16,782)	$	7,069

Schedule of Effective Income Tax Rate Reconciliation

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


	Fiscal year ended September 30,
	2020		2019		2018
Statutory income tax amount	$	1,567	$	2,341	$	809
Increase (decrease) resulting from:
State taxes, net of federal benefits	392		196		(71)
Manufacturing deduction	—		—		(364)

Transaction costs	143		—		79
Employee stock purchase plan	127		59		56
Foreign operations	431		225		318
Non-deductible executive compensation	115		171		27
Change in valuation allowance	173		520		(994)
Utilization of research and development tax credits	(2,881)		(2,173)		(1,971)
One-time transition tax	—		—		250
Deferred balance sheet remeasure	—		9		2,727
ASU 2016-09 excess stock compensation	(673)		(56)		643
Contingent consideration	(27)		250		388
Changes from provision to return	(111)		(511)		(554)
Adjustment of tax contingency reserves	151		146		193
U.S. deduction for foreign export sales	(355)		(146)		—


Global intangible low-taxed income	31		162		—
Other, net	(31)		(6)		83
Income tax (benefit) expense	$	(948)	$	1,187	$	1,619

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,
	2020		2019		2018
Unrecognized tax benefits at beginning of fiscal year	$	1,713	$	1,561	$	1,335
Increases related to:
Prior year income tax positions	756		9		39
Current year income tax positions	425		314		315
Decreases related to:
Prior year income tax positions	—		(34)		—
Settlements	(7)		—		—
Expiration of statute of limitations	(287)		(137)		(128)
Unrecognized tax benefits at end of fiscal year	$	2,600	$	1,713	$	1,561

Stock-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2020

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,
	2020		2019		2018
Cost of sales	$	291	$	174	$	195
Sales and marketing	2,318		1,708		1,492
Research and development	1,197		996		516
General and administrative	3,431		2,777		2,651
Stock-based compensation before income taxes	7,237		5,655		4,854
Income tax benefit	(1,523)		(1,174)		(1,017)
Stock-based compensation after income taxes	$	5,714	$	4,481	$	3,837

Schedule of Stock Option Activity

Below is a summary of our stock options as of September 30, 2020 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, 2019	3,348	$10.85
Granted	796	16.56
Exercised	(583)	10.12
Forfeited / Canceled	(168)	13.16
Balance at September 30, 2020	3,393	$12.20	3.9	$	12,790

Exercisable at September 30, 2020	2,115	$10.80	2.9	$	10,207

Schedule of Valuation Assumptions


	Fiscal year ended September 30,
	2020		2019		2018
Weighted average per option grant date fair value	$	6.17	$	4.48	$	3.98
Assumptions used for option grants:
Risk free interest rate	0.37% - 1.73%		1.60% - 2.93%		2.12% - 2.89%
Expected term	6.00 years		6.00 years		6.00 years
Expected volatility	36% - 44%		33% - 35%		33% - 34%
Weighted average volatility	36%		34%		33%
Expected dividend yield	0%		0%		0%

Schedule of Weighted Average Exercise Price Range and Remaining Contractual Life

As of September 30, 2020, 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	485	2.33	$	8.22	485	$	8.22
$9.04 - $10.33	542	3.61	$	10.04	427	$	9.98
$10.35 - $11.23	602	3.42	$	10.94	405	$	10.86
$11.24 - $12.63	620	3.79	$	12.08	448	$	12.17
$12.64 - $13.92	573	4.48	$	13.65	339	$	13.53
$13.93 - $17.94	536	6.05	$	17.62	11	$	14.75
$17.95 - $18.20	35	6.14	$	18.20	—	$	—
$7.40 - $18.20	3,393	3.98	$	12.20	2,115	$	10.80

Schedule of Nonvested Restricted Stock Units

Below is a summary of our non-vested restricted stock units as of September 30, 2020 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, 2019	888	$	11.65
Granted	516	$	14.86
Vested	(322)	$	11.78
Canceled	(110)	$	12.53
Nonvested at September 30, 2020	972	$	13.20

Quarterly Financial Data (Tables)

12 Months Ended

Sep. 30, 2020

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 2020
Revenue	$	62,317	$	73,447	$	70,338	$	73,169
Gross profit	$	30,464	$	38,641	$	37,349	$	37,518


Net income (1)	$	208	$	2,004	$	1,766	$	4,433



Net income per common share - basic	$	0.01	$	0.07	$	0.06	$	0.15



Net income per common share - diluted	$	0.01	$	0.07	$	0.06	$	0.15

Fiscal 2019
Revenue	$	62,313	$	65,764	$	61,166	$	64,960
Gross profit	$	29,783	$	30,329	$	28,328	$	30,595


Net income	$	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

Summary of Significant Accounting Policies (Property, Equipment and Improvements, Net) (Details)	12 Months Ended
	Sep. 30, 2020
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	10 years
Building Improvements \| Minimum
Property, Plant and Equipment [Line Items]
Property, equipment and improvements depreciation life	10 years
Buildings \| Maximum
Property, Plant and Equipment [Line Items]
Property, equipment and improvements depreciation life	39 years

Summary of Significant Accounting Policies (Identifiable Intangible Assets) (Details)	12 Months Ended
	Sep. 30, 2020
Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	3 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	14 years 6 months

Summary of Significant Accounting Policies (Goodwill) (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2020 USD ($) segment	Jun. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)
Goodwill [Line Items]
Number of reportable segments \| segment	2
Goodwill	$ 210,135		$ 153,422	$ 154,535
Market Capitalization		$ 338,200
Maximum \| Measurement Input, Control Premium [Member]
Goodwill [Line Items]
Goodwill Valuation Implied Control Premium		29.10%
Minimum \| Measurement Input, Control Premium [Member]
Goodwill [Line Items]
Goodwill Valuation Implied Control Premium		17.00%
IoT Products & Services
Goodwill [Line Items]
Goodwill		$ 157,100
IoT Solutions
Goodwill [Line Items]
Goodwill		$ 49,600

Summary of Significant Accounting Policies (Warranty) (Details)	12 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Warranty period products, minimum	1 year
Warranty period products, maximum	5 years
Warranty period software, maximum	1 year

Summary of Significant Accounting Policies (Revenue Recognition) (Details) - Subscription and Circulation	12 Months Ended
	Sep. 30, 2020
Minimum
Customer With Contract, Length Of Contract	1 year
Maximum
Customer With Contract, Length Of Contract	5 years

Summary of Significant Accounting Policies (Foreign Currency Translation) (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Accounting Policies [Abstract]
Foreign currency net transaction gains	$ (0.6)	$ 0.4	$ 0.1

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, 2020

Jun. 30, 2020

Mar. 31, 2020

Dec. 31, 2019

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2020

Sep. 30, 2019

Sep. 30, 2018

Accounting Policies [Abstract]

Net income

$ 4,433

$ 1,766

$ 2,004

$ 208

^[1]

$ 2,286

$ 1,648

$ 1,342

$ 4,682

$ 8,411

$ 9,958

$ 1,631

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

28,849,000

27,905,000

27,083,000

Effect of dilutive securities:

Stock options and restricted stock units

697,000

649,000

569,000

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

29,546,000

28,554,000

27,652,000

Net income per common share:

Basic

$ 0.15

$ 0.06

$ 0.07

$ 0.01

$ 0.08

$ 0.06

$ 0.05

$ 0.17

$ 0.29

$ 0.36

$ 0.06

Diluted net income per common share:

Diluted

$ 0.15

$ 0.06

$ 0.07

$ 0.01

$ 0.08

$ 0.06

$ 0.05

$ 0.17

$ 0.28

$ 0.35

$ 0.06

Antidilutive securities excluded from computation of earnings per share

1,143,411

744,513

925,063

[1]	During fiscal 2020, we recorded a discrete tax benefit of $1.0 million in the first quarter of fiscal 2020 resulting from excess tax benefits recognized on stock compensation and an adjustment of our state deferred tax rate due to the Opengear acquisition.

Summary of Significant Accounting Policies (Adoption of ASC 842) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Oct. 01, 2019	Sep. 30, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	$ 14,334		$ 0
Operating lease liabilities	$ 16,193		$ 0
ASU 2016-02 \| Other non-current assets
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets		$ 14,100
ASU 2016-02 \| Other non-current liabilities
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease liabilities		$ 17,900

Acquisitions Details (Details)				1 Months Ended	3 Months Ended		12 Months Ended
Acquisitions Details (Details)	Dec. 13, 2019 USD ($)	Jan. 22, 2018 USD ($)	Oct. 20, 2017 USD ($)	Apr. 30, 2019 USD ($)	Jun. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2020 USD ($)
Business Acquisition [Line Items]
Change in fair value of contingent consideration							$ (128,000)		$ 1,190,000	$ 1,377,000
Operating lease right-of-use assets						$ 0	14,334,000		0
Operating lease liabilities						0	16,193,000		0
Opengear
Business Acquisition [Line Items]
Cash paid at closing	$ 148,058,000
Weighted average useful life identifiable intangibles	13 years 4 months 24 days
Opengear \| General and Administrative
Business Acquisition [Line Items]
Acquisition costs						300,000	$ 2,700,000
Accelerated Concepts
Business Acquisition [Line Items]
Cash paid at closing		$ 16,400,000
Cash acquired		$ 200,000
Earn-out payment installment period		2
TempAlert
Business Acquisition [Line Items]
Cash paid at closing			$ 40,700,000
Cash acquired			$ 600,000
Maximum
Business Acquisition [Line Items]
Useful life identifiable intangibles							14 years 6 months
Earn-out payments \| Accelerated Concepts
Business Acquisition [Line Items]
Earn-out payment maximum		$ 6,500,000
Change in fair value of contingent consideration				$ 3,500,000
Earn-out payments \| Maximum \| Opengear
Business Acquisition [Line Items]
Earn-out payment maximum								$ 5,000,000.0
Earn-out payments \| Maximum \| Forecast \| Opengear
Business Acquisition [Line Items]
Earn-out payment maximum											$ 10,000,000.0
Customer Relationships \| Opengear
Business Acquisition [Line Items]
Useful life identifiable intangibles	14 years 6 months
Purchased and Core Technology \| Opengear
Business Acquisition [Line Items]
Useful life identifiable intangibles	9 years
Trademarks \| Opengear
Business Acquisition [Line Items]
Useful life identifiable intangibles	12 years
Other non-current assets \| Opengear
Business Acquisition [Line Items]
Operating lease right-of-use assets	$ 1,400,000
Other current liabilities and other non-current liabilities \| Opengear
Business Acquisition [Line Items]
Operating lease liabilities	$ 1,700,000
Contingent Consideration \| Opengear
Business Acquisition [Line Items]
Change in fair value of contingent consideration					$ 900,000
Contingent Consideration \| Accelerated Concepts
Business Acquisition [Line Items]
Change in fair value of contingent consideration					$ 2,400,000				3,500,000
Contingent Consideration \| TempAlert
Business Acquisition [Line Items]
Change in fair value of contingent consideration								$ 0
Estimate of Fair Value Measurement \| Fair Value, Measurements, Recurring \| Contingent Consideration
Business Acquisition [Line Items]
Contingent consideration fair value						$ 5,407,000	$ 4,228,000		$ 5,407,000
Estimate of Fair Value Measurement \| Fair Value, Measurements, Recurring \| Contingent Consideration \| Opengear
Business Acquisition [Line Items]
Contingent consideration fair value							4,200,000
Estimate of Fair Value Measurement \| Fair Value, Measurements, Recurring \| Contingent Consideration \| Accelerated Concepts
Business Acquisition [Line Items]
Contingent consideration fair value		$ 2,300,000
Estimate of Fair Value Measurement \| Fair Value, Measurements, Recurring \| Contingent Consideration \| TempAlert
Business Acquisition [Line Items]
Contingent consideration fair value							$ 0

Acquisitions (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands	Dec. 13, 2019	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Business Acquisition [Line Items]
Goodwill		$ 210,135	$ 153,422	$ 154,535
Opengear
Business Acquisition [Line Items]
Cash	$ 148,058
Contingent consideration	5,100
Total consideration transferred	153,158
Fair value of net tangible assets acquired	19,217
Deferred tax liability on identifiable intangible assets	(27,401)
Goodwill	56,242
Total assets acquired and liabilities assumed	153,158
Customer Relationships \| Opengear
Business Acquisition [Line Items]
Identifiable intangible assets	79,000
Purchased and Core Technology \| Opengear
Business Acquisition [Line Items]
Identifiable intangible assets	18,100
Trademarks \| Opengear
Business Acquisition [Line Items]
Identifiable intangible assets	$ 8,000

Acquisitions Supplemental Pro Forma Information (Details) - Opengear - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2020	Sep. 30, 2019
Business Acquisition [Line Items]
Net sales		$ 294,167	$ 308,986
Net income		$ 14,366	$ 10,417
Net income per share - basic		$ 0.50	$ 0.37
Net income per share - diluted		$ 0.49	$ 0.36
Acquisition-related costs
Business Acquisition [Line Items]
Acquisition costs	$ 3,100

Goodwill and other Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 225,059	$ 121,093
Accumulated amortization	(103,811)	(90,426)
Net	121,248	30,667
Purchased and Core Technology
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	76,011	57,699
Accumulated amortization	(55,482)	(50,986)
Net	20,529	6,713
License Agreements
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	112	102
Accumulated amortization	(112)	(74)
Net	0	28
Patents and Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	22,836	14,577
Accumulated amortization	(13,535)	(11,970)
Net	9,301	2,607
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	125,500	46,315
Accumulated amortization	(34,232)	(25,266)
Net	91,268	21,049
Non-compete Agreements
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	600	600
Accumulated amortization	(450)	(330)
Net	150	270
Order backlog
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	0	1,800
Accumulated amortization	0	(1,800)
Net	$ 0	$ 0

Goodwill and other Identifiable Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 14,754	$ 8,818	$ 9,435
2021	15,558
2022	14,714
2023	12,518
2024	11,815
2025	8,358
Cost of Sales and General and Administrative Expense [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 14,754	$ 8,818	$ 9,435

Goodwill and other Identifiable Intangible Assets (Goodwill) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Goodwill [Line Items]
Goodwill	$ 153,422	$ 154,535
Acquisition	56,242
Foreign currency translation adjustment	471	(1,113)
Goodwill	210,135	153,422
IoT Solutions
Goodwill [Line Items]
Goodwill	49,903	50,177
Acquisition	0
Foreign currency translation adjustment	(133)	(274)
Goodwill	49,770	49,903
IoT Products and Services
Goodwill [Line Items]
Goodwill	103,519	104,358
Acquisition	56,242
Foreign currency translation adjustment	604	(839)
Goodwill	$ 160,365	$ 103,519

Segment Information and Major Customers Summary of Operating Results by Segment (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2020 USD ($) segment	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment									2
Revenue	$ 73,169	$ 70,338	$ 73,447	$ 62,317	$ 64,960	$ 61,166	$ 65,764	$ 62,313	$ 279,271	$ 254,203	$ 226,893
Gross profit	$ 37,518	$ 37,349	$ 38,641	$ 30,464	$ 30,595	$ 28,328	$ 30,329	$ 29,783	143,972	119,035	109,054
Depreciation and amortization									19,299	13,396	12,784
IoT Products & Services
Segment Reporting Information [Line Items]
Revenue									249,530	215,287	201,506
Gross profit									129,349	100,522	97,895
Depreciation and amortization									11,521	6,102	6,040
IoT Solutions
Segment Reporting Information [Line Items]
Revenue									29,741	38,916	25,387
Gross profit									14,623	18,513	11,159
Depreciation and amortization									$ 7,778	$ 7,294	$ 6,744

- Definition

Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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+ Details

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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+ Details

Segment Information and Major Customers Expended for Property, Plant and Equipment by Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information [Line Items]
Expended for property, plant and equipment	$ 899	$ 9,335	$ 1,842
IoT Products & Services
Segment Reporting Information [Line Items]
Expended for property, plant and equipment	878	8,863	1,773
IoT Solutions
Segment Reporting Information [Line Items]
Expended for property, plant and equipment	$ 21	$ 472	$ 69

Segment Information and Major Customers Total Assets by Segment (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 528,682	$ 398,698
IoT Products & Services
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	387,578	215,651
IoT Solutions
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	86,975	90,255
Unallocated
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 54,129	$ 92,792

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

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+ Details

Segment Information and Major Customers Net Property, Equipment and Improvements by Geographic Area (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Net property, equipment and improvements	$ 11,507	$ 13,857
North America, primarily United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net property, equipment and improvements	11,297	13,400
International, primarily Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Net property, equipment and improvements	$ 210	$ 457

Segment Information and Major Customers Geographic revenue (Details) $ in Thousands			3 Months Ended								12 Months Ended
	Sep. 30, 2020 customer	Sep. 30, 2019 customer	Sep. 30, 2020 USD ($) customer	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($) customer	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2020 USD ($) customer	Sep. 30, 2019 USD ($) customer	Sep. 30, 2018 USD ($) customer
Segment Reporting Information [Line Items]
Revenue \| $			$ 73,169	$ 70,338	$ 73,447	$ 62,317	$ 64,960	$ 61,166	$ 65,764	$ 62,313	$ 279,271	$ 254,203	$ 226,893
Number of customer representing over ten percent of revenue											0	0	0
Number of customer representing over ten percent of consolidated accounts receivable	1	1	1				1				1	1
Accounts Receivable
Segment Reporting Information [Line Items]
Percentage of concentration	17.20%	14.70%
United States \| U.S. Export Net Sales
Segment Reporting Information [Line Items]
Percentage of concentration											25.10%	28.50%	30.10%

- Definition

+ References

+ Details

Sale of Building (Details) $ in Thousands		3 Months Ended	12 Months Ended
Sale of Building (Details) $ in Thousands	Oct. 02, 2018 USD ($) ft²	Dec. 31, 2018 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale			$ 0	$ 4,392	$ 622
Minnetonka, MN
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Area of real estate sold (in sqft) \| ft²	130,000
Proceeds from sale of building	$ 10,000
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

Selected Balance Sheet Data (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Accounts receivable, net:
Accounts receivable	$ 65,027	$ 60,062
Less allowance for doubtful accounts	3,778	968
Less reserve for future credit returns and pricing adjustments	2,022	2,677
Total accounts receivable, net	59,227	56,417
Inventories:
Raw materials	14,009	12,308
Work in process	0	565
Finished goods	37,559	26,891
Total Inventories	51,568	39,764
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	40,015	38,737
Less accumulated depreciation and amortization	28,508	24,880
Total property, equipment and improvements, net	11,507	13,857
Land
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	570	570
Buildings
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	2,338	2,338
Improvements
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	7,844	7,646
Equipment
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	17,153	17,440
Purchased Software
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	3,770	4,030
Furniture and Fixtures
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	3,236	2,963
Subscriber assets
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	$ 5,104	$ 3,750

(Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Fair Value, Inputs, Level 1 \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		$ 56,700
Total liabilities measured at fair value	$ 0	0
Fair Value, Inputs, Level 2 \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		0
Total liabilities measured at fair value	0	0
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration fair value	4,228	5,407	$ 10,065
Fair Value, Inputs, Level 3 \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		0
Total liabilities measured at fair value	4,228	5,407
Contingent consideration on acquired business \| Fair Value, Inputs, Level 1 \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration fair value	0	0
Contingent consideration on acquired business \| 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	0	0
Contingent consideration on acquired business \| Fair Value, Inputs, Level 3 \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration fair value	4,228	5,407
Money Market Funds \| Fair Value, Inputs, Level 1 \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		56,700
Money Market Funds \| Fair Value, Inputs, Level 2 \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		0
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]
Cash equivalents		0
Estimate of Fair Value Measurement \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		56,700
Total liabilities measured at fair value	4,228	5,407
Estimate of Fair Value Measurement \| Contingent consideration on acquired business \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration fair value	$ 4,228	5,407
Estimate of Fair Value Measurement \| Money Market Funds \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		$ 56,700

Fair Value Measurements (Reconciliation of Liability) (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at beginning of period	$ 5,407	$ 10,065
Purchase price contingent consideration	5,100	0
Contingent consideration payments	(6,151)	(5,848)
Change in fair value of contingent consideration	(128)	1,190
Fair value at end of period	$ 4,228	$ 5,407

Fair Value Measurements (Details) - USD ($)		3 Months Ended	12 Months Ended
Fair Value Measurements (Details) - USD ($)	Oct. 05, 2015	Jun. 30, 2020	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Jan. 22, 2018	Nov. 01, 2016
Estimate of Fair Value Measurement \| Contingent consideration on acquired business \| Fair Value, Measurements, Recurring
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value			$ 4,228,000		$ 5,407,000
Estimate of Fair Value Measurement \| Bluenica Corporation \| Contingent consideration on acquired business \| Fair Value, Measurements, Recurring
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value	$ 10,400,000
Estimate of Fair Value Measurement \| FreshTemp \| Contingent consideration on acquired business \| Fair Value, Measurements, Recurring
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value									$ 1,300,000
Estimate of Fair Value Measurement \| TempAlert \| Contingent consideration on acquired business \| Fair Value, Measurements, Recurring
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value			0
Estimate of Fair Value Measurement \| Accelerated Concepts \| Contingent consideration on acquired business \| Fair Value, Measurements, Recurring
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value								$ 2,300,000
Estimate of Fair Value Measurement \| Opengear \| Contingent consideration on acquired business \| Fair Value, Measurements, Recurring
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value			4,200,000
Change in fair value of contingent consideration			(128,000)		1,190,000	$ 1,377,000
Fair Value, Inputs, Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value			4,228,000		5,407,000	10,065,000
Contingent consideration on acquired business \| Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value			4,228,000		5,407,000
Bluenica Corporation
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Business Combination, Contingent Liability, Payout Period	4 years
Bluenica Corporation \| Contingent consideration on acquired business
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Change in fair value of contingent consideration			$ 2,900,000		2,200,000	$ 0	$ 500,000
FreshTemp \| Contingent consideration on acquired business
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Change in fair value of contingent consideration					200,000
TempAlert \| Contingent consideration on acquired business
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Change in fair value of contingent consideration				$ 0
Accelerated Concepts \| Contingent consideration on acquired business
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Change in fair value of contingent consideration		$ 2,400,000			$ 3,500,000
Opengear \| Maximum \| Fair Value, Inputs, Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value inputs probability of payment			72.00%
Opengear \| Contingent consideration on acquired business
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Change in fair value of contingent consideration		$ 900,000

Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Debt Instrument [Line Items]
Total loans	$ 63,125
Less unamortized issuance costs	(2,173)
Long-term Debt, Current Maturities	(1,972)	$ 0
Total long-term debt, net of current portion	58,980
Revolving loan
Debt Instrument [Line Items]
Total loans	15,000
Term loan
Debt Instrument [Line Items]
Total loans	$ 48,125

Debt Schedule of Maturities of Long-term Debt (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Debt Disclosure [Abstract]
2021	$ 2,500
2022	3,438
2023	3,750
2024	4,687
2025	48,750
Total long-term debt	$ 63,125

Debt - Narrative (Details) - USD ($) $ in Thousands			2 Months Ended	12 Months Ended
Debt - Narrative (Details) - USD ($) $ in Thousands	May 04, 2020	Apr. 14, 2020	Jun. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018	Dec. 13, 2019
Line of Credit Facility [Line Items]
Maximum borrowing capacity							$ 150,000
Weighted average interest rate on debt				0.70%
Debt issuance costs							2,600
Proceeds from long-term debt				$ 119,018	$ 0	$ 0
Debt Instrument [Line Items]
Proceeds from long-term debt				119,018	0	0
Repayments of long-term debt				$ 55,893	$ 0	$ 0
Paycheck Protection Program loan
Line of Credit Facility [Line Items]
Proceeds from long-term debt		$ 9,000
Debt Instrument [Line Items]
Proceeds from long-term debt		$ 9,000
Repayments of long-term debt	$ 9,000
LIBOR \| Maximum
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			3.25%
LIBOR \| Minimum
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			1.25%
Term loan
Line of Credit Facility [Line Items]
Maximum borrowing capacity							50,000
Revolving loan
Line of Credit Facility [Line Items]
Maximum borrowing capacity							$ 100,000
Year one \| Term loan
Line of Credit Facility [Line Items]
Amortization percentage of quarterly installments							5.00%
Year two \| Term loan
Line of Credit Facility [Line Items]
Amortization percentage of quarterly installments							5.00%
Year three \| Term loan
Line of Credit Facility [Line Items]
Amortization percentage of quarterly installments							7.50%
Year four \| Term loan
Line of Credit Facility [Line Items]
Amortization percentage of quarterly installments							7.50%
Year five \| Term loan
Line of Credit Facility [Line Items]
Amortization percentage of quarterly installments							10.00%

Product Warranty Obligation (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 1,012	$ 1,172	$ 987
Warranties issued	666	305	759
Settlements made	(736)	(465)	(574)
Ending balance	$ 942	$ 1,012	$ 1,172

Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Assets and Liabilities, Lessee [Abstract]
Total lease assets	$ 14,334	$ 0
Total lease assets	14,334
Current portion of operating lease liabilities	2,527	0
Operating lease non-current liability	16,193	$ 0
Total lease liabilities	$ 18,720

Leases - Lease Cost (Details) $ in Thousands	12 Months Ended
Leases - Lease Cost (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Lease, Cost [Abstract]
Operating lease cost	$ 3,341
Variable lease cost	744
Short-term lease cost	175
Total lease cost	$ 4,260

Leases - Other Information (Details) $ in Thousands	12 Months Ended
Leases - Other Information (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Cash paid for leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 2,893
Right Of Use Asset Obtained In Exchange for Lease Liability [Abstract]
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 1,073
Weighted average remaining lease term [Abstract]
Weighted average remaining lease term- operating leases	5 years 7 months 6 days
Weighted Average Discount Rate Leases [Abstract]
Weighted average discount rate - operating leases	4.80%

Leases - Maturity of Operating Lease Liability (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2021	$ 3,335
2022	2,932
2023	2,669
2024	2,452
2025	2,348
Thereafter	9,219
Total future undiscounted lease payments	22,955
Less imputed interest	(4,235)
Total reported lease liability	$ 18,720

Leases - Leases - Disclosures Related To Periods Prior To Adoption Of New Lease Standard Minimum Lease Payments (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

Leases Narrative (Details) $ in Thousands	12 Months Ended
Leases Narrative (Details) $ in Thousands	Sep. 30, 2020 USD ($) ft²
Leases [Abstract]
Lease agreement term, lease not yet commenced	10 years
Operating lease payment due, lease not yet commenced	$ 4,800
Tenant improvement allowance, lease not yet commenced	$ 1,000
Area of lease not yet commenced \| ft²	35,466

Restructuring (Details) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended	12 Months Ended
Restructuring (Details) $ in Thousands	May 31, 2017 USD ($) employee	Jun. 30, 2020 USD ($) employee	Mar. 31, 2020 USD ($) employee	Sep. 30, 2018 USD ($) employee	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance					$ 0	$ 453	$ 1,656
Restructuring charge					133		504
Payments for restructuring					(117)	(359)	(1,553)
Restructuring reversals					(16)	(87)	(203)
Restructuring foreign currency fluctuation						(7)	49
Restructuring reserve, ending balance				$ 453	0	0	453
Employee Severance \| 2020 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance					0	0	0
Restructuring charge					133		0
Payments for restructuring					(117)	0	0
Restructuring reversals					(16)	0	0
Restructuring foreign currency fluctuation						0	0
Restructuring reserve, ending balance				0	0	0	0
Employee Severance \| Manufacturing Transition
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance					0	147	0
Restructuring charge					0		504
Payments for restructuring					0	(108)	(357)
Restructuring reversals					0	(39)	0
Restructuring foreign currency fluctuation						0	0
Restructuring reserve, ending balance				147	0	0	147
Employee Severance \| 2017 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance					0	293	1,528
Restructuring charge					0		0
Payments for restructuring					0	(233)	(1,035)
Restructuring reversals					0	(53)	(244)
Restructuring foreign currency fluctuation						(7)	44
Restructuring reserve, ending balance				293	0	0	293
Facility Closing \| 2017 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance					0	13	128
Restructuring charge					0		0
Payments for restructuring					0	(18)	(161)
Restructuring reversals					0	5	41
Restructuring foreign currency fluctuation						0	5
Restructuring reserve, ending balance				$ 13	$ 0	$ 0	$ 13
IoT Products & Services \| 2020 Restructuring
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated \| employee			2
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 \| 2020 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring charge			$ 38
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
IoT Solutions \| 2020 Restructuring
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated \| employee		22
IoT Solutions \| Employee Severance \| 2020 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring charge		$ 95

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Total revenues	$ 73,169	$ 70,338	$ 73,447	$ 62,317	$ 64,960	$ 61,166	$ 65,764	$ 62,313	$ 279,271	$ 254,203	$ 226,893
North America, primarily United States
Disaggregation of Revenue [Line Items]
Total revenues									213,487	184,022	161,924
Europe, Middle East & Africa
Disaggregation of Revenue [Line Items]
Total revenues									40,076	39,896	39,211
Rest of world
Disaggregation of Revenue [Line Items]
Total revenues									25,708	30,285	25,758
Transferred at a point in time
Disaggregation of Revenue [Line Items]
Total revenues									253,371	231,387	212,448
Transferred over time
Disaggregation of Revenue [Line Items]
Total revenues									$ 25,900	$ 22,816	$ 14,445

- Definition

+ References

+ Details

Revenue - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Depreciation expense	$ 1.5	$ 1.1	$ 0.5
Period of amortization	3 years
Equipment
Disaggregation of Revenue [Line Items]
Contract assets	$ 2.0	$ 2.1

Revenue - Unearned Revenue (Details) $ in Thousands	12 Months Ended
Revenue - Unearned Revenue (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Unearned Revenue [Roll Forward]
Unearned revenue, beginning of period	$ 5,025
Billings	35,213
Revenue recognized	(30,897)
Unearned revenue, end of period	$ 9,341

Revenue - Performance Obligations (Details) $ in Millions	Sep. 30, 2020 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 14.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 10.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 \| Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation time period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 \| Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation time period	7 years

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Valuation allowance	$ 3,810	$ 4,372
Income tax provision for Tax Cuts & Jobs Act of 2017	$ 3,000
Tax Credit Carryforward [Line Items]
U.S. capital loss carryforward		2,900
United States Federal Tax Jurisdiction
Tax Credit Carryforward [Line Items]
Federal and state research and development tax credits		3,100
U.S. capital loss carryforward		2,600
Deferred Tax Assets, Other Tax Carryforwards		100
Foreign Tax Authority
Tax Credit Carryforward [Line Items]
Non-U.S. operating losses		$ 200

Income Taxes (Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
United States	$ 3,756	$ 7,981	$ (2,427)
International	3,707	3,164	5,677
Income before income taxes	$ 7,463	$ 11,145	$ 3,250

Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Current:
Federal	$ 709	$ 950	$ 526
State	572	290	57
Foreign	1,128	746	1,412
Deferred:
U.S.	(2,911)	(825)	(536)
Foreign	(446)	26	160
Income tax (benefit) expense	$ (948)	$ 1,187	$ 1,619

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes (Deferred Tax Assets) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Non-current deferred tax asset	$ 389	$ 7,330
Non-current deferred tax liability	(17,171)	(261)
Net deferred tax (liability) asset	(16,782)	7,069
Depreciation and amortization	(1,037)	(480)
Lease asset	(3,415)	0
Lease liability	4,477	0
Inventories	979	536
Compensation costs	3,698	3,675
Other accruals	3,985	3,870
Tax credit carryforwards	6,021	4,911
Valuation allowance	(4,372)	(3,810)
Identifiable intangible assets	(27,118)	(1,633)
Net deferred tax (liability) asset	$ (16,782)	$ 7,069

Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Statutory income tax amount	$ 1,567	$ 2,341	$ 809
State taxes, net of federal benefits	392	196	(71)
Manufacturing deduction	0	0	(364)
Transaction costs	143	0	79
Employee stock purchase plan	127	59	56
Foreign operations	431	225	318
Non-deductible executive compensation	115	171	27
Change in valuation allowance	173	520	(994)
Utilization of research and development tax credits	(2,881)	(2,173)	(1,971)
One-time transition tax	0	0	250
Deferred balance sheet remeasure	0	9	2,727
ASU 2016-09 excess stock compensation	(673)	(56)	643
Contingent consideration	(27)	250	388
Changes from provision to return	(111)	(511)	(554)
Adjustment of tax contingency reserves	151	146	193
U.S. deduction for foreign export sales	(355)	(146)	0
Global intangible low-taxed income	31	162	0
Other, net	(31)	(6)	83
Income tax (benefit) expense	$ (948)	$ 1,187	$ 1,619

Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, beginning balance	$ 1,713	$ 1,561	$ 1,335
Increases related to prior year income tax positions	756	9	39
Increases related to current year income tax positions	425	314	315
Decreases related to prior year income tax positions	0	(34)	0
Decreases related to settlements	(7)	0	0
Decreases related to expiration of statute of limitations	(287)	(137)	(128)
Unrecognized tax benefits, ending balance	$ 2,600	$ 1,713	$ 1,561

Income Taxes (Unrecognized Tax Benefits, Additional Information) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Income Tax Contingency [Line Items]
Unrecognized tax benefits that would impact effective tax rate	$ 2,400
Unrecognized tax benefits	2,600	$ 1,713	$ 1,561	$ 1,335
Accrued income tax penalties and interest for unrecognized tax benefits	100	$ 100
Noncurrent income taxes payable
Income Tax Contingency [Line Items]
Unrecognized tax benefits	1,900
Noncurrent deferred tax assets
Income Tax Contingency [Line Items]
Unrecognized tax benefits	700
Maximum
Income Tax Contingency [Line Items]
Decrease in unrecognized tax benefits that is reasonably possible	$ 100

Stock-Based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018	Jan. 29, 2020	Feb. 04, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	103,492	93,128	74,204
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	$ 1,800	$ 1,100	$ 700
Proceeds from employee stock purchase plan transactions	1,065	1,058	1,115
Total intrinsic value of all options exercised	3,700	2,100	1,200
Total grant date fair value of shares vested	3,700	3,500	3,300
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost nonvested awards	$ 6,000
Weighted average period, unrecognized compensation cost, nonvested awards	2 years 9 months 18 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	$ 9,600
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
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
Proceeds from employee stock purchase plan transactions	$ 1,100	$ 1,100	$ 1,100
Common shares issued to employees	117,826	111,036	125,446
Shares available for future issuance	711,714
The 2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for future grants	1,209,150
Number of shares authorized				1,500,000
The 2020 Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	7 years
Vesting period	4 years
The 2019 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized					1,500,000
The 2019 Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	7 years
Vesting period	4 years
The Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized				3,425,000
Director \| The 2020 Plan \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Director \| The 2019 Plan \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Executives and Employees \| The 2020 Plan \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Executives and Employees \| The 2019 Plan \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years

Stock-Based Compensation (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 7,237	$ 5,655	$ 4,854
Income tax benefit	(1,523)	(1,174)	(1,017)
Stock-based compensation after income taxes	5,714	4,481	3,837
Cost of Sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	291	174	195
Sales and Marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	2,318	1,708	1,492
Research and Development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	1,197	996	516
General and Administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 3,431	$ 2,777	$ 2,651

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, 2020 USD ($) $ / shares shares
Options Outstanding [Roll Forward]
Options Outstanding, Beginning Balance \| shares	3,348
Options Outstanding, Granted \| shares	796
Options Outstanding, Exercised \| shares	(583)
Options Outstanding, Forfeited / Cancelled \| shares	(168)
Options Outstanding, Ending Balance \| shares	3,393
Options Outstanding, Exercisable \| shares	2,115
Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price, Beginning Balance	$ 10.85
Weighted Average Exercise Price, Granted	16.56
Weighted Average Exercise Price, Exercised	10.12
Weighted Average Exercise Price, Forfeited / Cancelled	13.16
Weighted Average Exercise Price, Ending Balance	12.20
Weighted Average Exercise Price, Exercisable	$ 10.80
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted Average Remaining Contractual Term, Outstanding	3 years 10 months 24 days
Weighted Average Remaining Contractual Term, Exercisable	2 years 10 months 24 days
Aggregate Intrinsic Value, Outstanding \| $	$ 12,790
Aggregate Intrinsic Value, Exercisable \| $	$ 10,207
Closing Stock Price	$ 15.63

Stock-Based Compensation (Fair Value Assumptions) (Details) - Stock Options - $ / shares	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average per option grant date fair value	$ 6.17	$ 4.48	$ 3.98
Assumptions Used For Options Grants [Abstract]
Risk free interest rate, minimum	0.37%	1.60%	2.12%
Risk free interest rate, maximum	1.73%	2.93%	2.89%
Expected term	6 years	6 years	6 years
Expected volatility rate, minimum	36.00%	33.00%	33.00%
Expected volatility rate, maximum	44.00%	35.00%	34.00%
Weighted average volatility	36.00%	34.00%	33.00%
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, 2020 $ / 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	485
Weighted Average Remaining Contractual Term	2 years 3 months 29 days
Weighted Average Exercise Price, Options Outstanding	$ 8.22
Number of Shares Vested, Options Exercisable \| shares	485
Weighted Average Exercise Price, Options Exercisable	$ 8.22
$9.04 - $10.33
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	9.04
Exercise Price Range, Upper Range	$ 10.33
Options Outstanding \| shares	542
Weighted Average Remaining Contractual Term	3 years 7 months 9 days
Weighted Average Exercise Price, Options Outstanding	$ 10.04
Number of Shares Vested, Options Exercisable \| shares	427
Weighted Average Exercise Price, Options Exercisable	$ 9.98
$10.35 - $11.23
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	10.35
Exercise Price Range, Upper Range	$ 11.23
Options Outstanding \| shares	602
Weighted Average Remaining Contractual Term	3 years 5 months 1 day
Weighted Average Exercise Price, Options Outstanding	$ 10.94
Number of Shares Vested, Options Exercisable \| shares	405
Weighted Average Exercise Price, Options Exercisable	$ 10.86
$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	620
Weighted Average Remaining Contractual Term	3 years 9 months 14 days
Weighted Average Exercise Price, Options Outstanding	$ 12.08
Number of Shares Vested, Options Exercisable \| shares	448
Weighted Average Exercise Price, Options Exercisable	$ 12.17
$12.64 - $13.92
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	12.64
Exercise Price Range, Upper Range	$ 13.92
Options Outstanding \| shares	573
Weighted Average Remaining Contractual Term	4 years 5 months 23 days
Weighted Average Exercise Price, Options Outstanding	$ 13.65
Number of Shares Vested, Options Exercisable \| shares	339
Weighted Average Exercise Price, Options Exercisable	$ 13.53
$13.93 - $17.94
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	13.93
Exercise Price Range, Upper Range	$ 17.94
Options Outstanding \| shares	536
Weighted Average Remaining Contractual Term	6 years 18 days
Weighted Average Exercise Price, Options Outstanding	$ 17.62
Number of Shares Vested, Options Exercisable \| shares	11
Weighted Average Exercise Price, Options Exercisable	$ 14.75
$17.95 - $18.20
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	17.95
Exercise Price Range, Upper Range	$ 18.20
Options Outstanding \| shares	35
Weighted Average Remaining Contractual Term	6 years 1 month 20 days
Weighted Average Exercise Price, Options Outstanding	$ 18.20
Number of Shares Vested, Options Exercisable \| shares	0
Weighted Average Exercise Price, Options Exercisable	$ 0
$7.40 - $18.20
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	7.40
Exercise Price Range, Upper Range	$ 18.20
Options Outstanding \| shares	3,393
Weighted Average Remaining Contractual Term	3 years 11 months 23 days
Weighted Average Exercise Price, Options Outstanding	$ 12.20
Number of Shares Vested, Options Exercisable \| shares	2,115
Weighted Average Exercise Price, Options Exercisable	$ 10.80

Stock-Based Compensation (Non-Vested Options) (Details) - Restricted Stock Units shares in Thousands	12 Months Ended
	Sep. 30, 2020 $ / shares shares
Nonvested Number of Restricted Stock Units [Roll Forward]
Number of Restricted Stock Units, Beginning Balance \| shares	888
Number of Restricted Stock Units, Granted \| shares	516
Number of Restricted Stock Units, Vested \| shares	(322)
Number of Restricted Stock Units, Canceled \| shares	(110)
Number of Restricted Stock Units, Ending Balance \| shares	972
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	$ 11.65
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Granted \| $ / shares	14.86
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested \| $ / shares	11.78
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Canceled \| $ / shares	12.53
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance \| $ / shares	$ 13.20

Common Stock Repurchase (Details) - May 2018 authorized repurchase program - USD ($)	12 Months Ended
	Sep. 30, 2020	Apr. 24, 2018
Stock repurchase program, authorized amount		$ 20,000,000.0
Shares repurchased	0

Employee Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Defined Contribution Plan Disclosure [Line Items]
Matching contributions, amount	$ 1.7	$ 1.8	$ 1.6
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%

Contingencies Contingencies (Details) $ in Millions	12 Months Ended
Contingencies Contingencies (Details) $ in Millions	Sep. 30, 2020 CAD ($)
DimOnOff Inc.
Loss Contingencies [Line Items]
Damages sought	$ 1.0

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

3 Months Ended

12 Months Ended

Sep. 30, 2020

Jun. 30, 2020

Mar. 31, 2020

Dec. 31, 2019

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2020

Sep. 30, 2019

Sep. 30, 2018

Quarterly Financial Information Disclosure [Abstract]

Total revenues

$ 73,169

$ 70,338

$ 73,447

$ 62,317

$ 64,960

$ 61,166

$ 65,764

$ 62,313

$ 279,271

$ 254,203

$ 226,893

Gross profit

37,518

37,349

38,641

30,464

30,595

28,328

30,329

29,783

143,972

119,035

109,054

Net (loss) income

$ 4,433

$ 1,766

$ 2,004

$ 208

^[1]

$ 2,286

$ 1,648

$ 1,342

$ 4,682

$ 8,411

$ 9,958

$ 1,631

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

$ 0.15

$ 0.06

$ 0.07

$ 0.01

$ 0.08

$ 0.06

$ 0.05

$ 0.17

$ 0.29

$ 0.36

$ 0.06

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

$ 0.15

$ 0.06

$ 0.07

$ 0.01

$ 0.08

$ 0.06

$ 0.05

$ 0.17

$ 0.28

$ 0.35

$ 0.06

[1]	During fiscal 2020, we recorded a discrete tax benefit of $1.0 million in the first quarter of fiscal 2020 resulting from excess tax benefits recognized on stock compensation and an adjustment of our state deferred tax rate due to the Opengear acquisition.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1448-109256

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

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Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Quarterly Financial Data - Additional Information (Details) $ in Millions	3 Months Ended
	Dec. 31, 2019 USD ($)
Quarterly Financial Information Disclosure [Abstract]
Net discrete tax expense (benefits)	$ (1.0)

Subsequent Event (Details) $ in Thousands		12 Months Ended
Subsequent Event (Details) $ in Thousands	Oct. 07, 2020 USD ($) employee	Sep. 30, 2020 USD ($)	Sep. 30, 2018 USD ($)
Subsequent Event [Line Items]
Restructuring Charges		$ 133	$ 504
Subsequent Event \| 2021 Restructuring \| IoT Products & Services
Subsequent Event [Line Items]
Number of positions eliminated \| employee	20
Subsequent Event \| 2021 Restructuring \| IoT Products & Services \| Employee Severance \| Minimum
Subsequent Event [Line Items]
Restructuring Charges	$ 800
Subsequent Event \| 2021 Restructuring \| IoT Products & Services \| Employee Severance \| Maximum
Subsequent Event [Line Items]
Restructuring Charges	$ 900

Schedule II - Valuation and Qualifying Accounts (Details) - USD ($)
$ in Thousands

12 Months Ended

Sep. 30, 2020

Sep. 30, 2019

Sep. 30, 2018

Valuation allowance - deferred tax assets

SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]

Balance at beginning of period

$ 3,810

$ 3,291

$ 5,952

Charged to costs and expenses

670

529

521

Charged to Other Accounts

Deductions

108

3,182

Balance at end of period

4,372

3,810

3,291

Valuation account - doubtful accounts

SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]

Balance at beginning of period

968

785

341

Charged to costs and expenses

2,534

635

729

Charged to Other Accounts

^[1]

Deductions

^[2]

(276)

452

325

Balance at end of period

3,778

968

785

Reserve for future credit returns and pricing adjustments

SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]

Balance at beginning of period

2,677

2,560

2,169

Charged to costs and expenses

17,816

12,640

10,715

Charged to Other Accounts

Deductions

19,017

12,523

10,324

Balance at end of period

$ 1,476

$ 2,677

$ 2,560

[1]	Established through purchase accounting relating to the acquisition of TempAlert
[2]	Uncollectible accounts charged against allowance, net of recoveries