0000854775-21-000018 | 10-K | XBRL Viewer

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Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Sep. 30, 2021	Nov. 19, 2021	Mar. 31, 2021
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Sep. 30, 2021
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			$ 632,366,875
Entity Common Stock, Shares Outstanding		34,405,201
Entity Central Index Key	0000854775
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2021
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 ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Revenue:
Revenue	$ 308,632	$ 279,271	$ 254,203
Cost of sales:
Amortization	4,498	4,487	2,963
Total cost of sales	141,975	135,299	135,168
Gross profit	166,657	143,972	119,035
Operating expenses:
Sales and marketing	61,909	52,761	45,801
Research and development	46,623	43,765	37,564
General and administrative	46,602	36,012	25,685
Restructuring charge (reversal)	995	117	(87)
Total operating expenses	156,129	132,655	108,963
Operating income	10,528	11,317	10,072
Other (expense) income, net:
Interest income	10	304	733
Interest expense	(1,395)	(3,592)	(102)
Other (expense) income, net	(144)	(566)	442
Total other (expense) income, net	(1,529)	(3,854)	1,073
Income before income taxes	8,999	7,463	11,145
Income tax (benefit) expense	(1,367)	(948)	1,187
Net income	$ 10,366	$ 8,411	$ 9,958
Net income per common share:
Basic	$ 0.32	$ 0.29	$ 0.36
Diluted net income per common share:
Diluted	$ 0.31	$ 0.28	$ 0.35
Weighted average common shares:
Basic (shares)	32,111,000	28,849,000	27,905,000
Diluted (shares)	33,394,000	29,546,000	28,554,000
Product
Revenue:
Revenue	$ 265,805	$ 248,374	$ 224,530
Cost of sales:
Cost of sales	124,065	118,322	118,855
Service
Revenue:
Revenue	42,827	30,897	29,673
Cost of sales:
Cost of sales	$ 13,412	$ 12,490	$ 13,350

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 10,366	$ 8,411	$ 9,958
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	1,071	1,698	(2,003)
Change in net unrealized gain (loss) on investments	0	0	19
Less income tax (expense) benefit	0	0	(5)
Other comprehensive income (loss), net of tax	1,071	1,698	(1,989)
Comprehensive income	$ 11,437	$ 10,109	$ 7,969

- Definition

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

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+ Details

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Current assets:
Cash and cash equivalents	$ 152,432	$ 54,129
Accounts receivable, net	43,738	59,227
Inventories	43,921	51,568
Other current assets	6,567	5,134
Total current assets	246,658	170,058
Property, equipment and improvements, net	12,132	11,507
Identifiable intangible assets, net	118,029	121,248
Goodwill	225,522	210,135
Deferred tax assets	439	389
Operating lease right-of-use assets	15,684	14,334
Other non-current assets	1,067	1,011
Total assets	619,531	528,682
Current liabilities:
Current portion of long-term debt	0	1,972
Accounts payable	22,586	28,067
Accrued compensation	12,934	9,372
Unearned revenue	13,589	7,691
Contingent consideration on acquired businesses	20	4,228
Current portion of operating lease liabilities	2,633	2,527
Other current liabilities	7,179	7,373
Total current liabilities	58,941	61,230
Income taxes payable	2,334	1,958
Deferred tax liabilities	13,493	17,171
Long-term Debt	45,799	58,980
Operating lease liabilities	18,368	16,193
Other non-current liabilities	8,079	1,650
Total liabilities	147,014	157,182
Commitments and Contingencies (see Note 16)
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; 40,653,035 and 35,512,843 shares issued	407	355
Additional paid-in capital	370,699	279,741
Retained earnings	180,692	170,330
Accumulated other comprehensive loss	(22,746)	(23,817)
Treasury stock, at cost, 6,390,645 and 6,353,094 shares	(56,535)	(55,109)
Total stockholders’ equity	472,517	371,500
Total liabilities and stockholders’ equity	$ 619,531	$ 528,682

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2021	Sep. 30, 2020
Statement of Financial Position [Abstract]
Preferred stock, par or stated value 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 or stated value per share	$ 0.01	$ 0.01
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares, issued	40,653,035	35,512,843
Treasury stock, shares	6,390,645	6,353,094

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Operating activities:
Net income	$ 10,366	$ 8,411	$ 9,958
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, equipment and improvements	4,343	4,545	4,578
Amortization of identifiable intangible assets	16,534	14,754	8,818
Stock-based compensation	8,135	7,237	5,655
Deferred income tax provision	(4,598)	(3,357)	(799)
Loss (gain) on sale of property, equipment and improvements	89	0	(4,392)
Change in fair value of contingent consideration	5,772	(128)	1,190
Provision for bad debt and product returns	2,290	2,135	635
Provision for inventory obsolescence	1,200	2,630	1,874
Other, net	42	366	(156)
Changes in operating assets and liabilities (net of acquisitions):
Accounts receivable	11,467	5,539	(6,589)
Inventories	4,679	(11,133)	(1,062)
Other assets	(1,657)	(704)	(866)
Income taxes	165	(1,100)	(103)
Accounts payable	(5,578)	3,205	8,232
Accrued expenses	4,474	2,078	1,991
Net cash provided by operating activities	57,723	34,478	28,964
Investing activities:
Proceeds from maturities of marketable securities	0	0	4,750
Acquisition of businesses, net of cash acquired	(19,108)	(136,098)	0
Proceeds from sale of property, equipment and improvements	0	0	10,096
Purchase of property, equipment, improvements and certain other intangible assets	(2,257)	(899)	(9,335)
Net cash (used in) provided by investing activities	(21,365)	(136,997)	5,511
Financing activities:
Proceeds from long-term debt	617	119,018	0
Payments on long-term debt	(15,624)	(55,893)	0
Acquisition earn-out payments	(4,200)	(4,698)	(3,748)
Proceeds from issuances of stock, net of offering expenses	73,830	0
Proceeds from stock option plan transactions	8,525	5,902	4,874
Proceeds from employee stock purchase plan transactions	1,214	1,065	1,058
Taxes paid for net share settlement of share-based payment awards	(2,120)	(1,791)	(1,071)
Net cash provided by financing activities	62,242	63,603	1,113
Effect of exchange rate changes on cash and cash equivalents	(297)	253	(810)
Net increase (decrease) in cash and cash equivalents	98,303	(38,663)	34,778
Cash and cash equivalents, beginning of period	54,129	92,792	58,014
Cash and cash equivalents, end of period	152,432	54,129	92,792
Supplemental disclosures of cash flow information:
Interest paid	917	3,009	1
Income taxes paid, net	3,684	3,686	2,048
Supplemental schedule of non-cash investing and financing activities:
Accrual for property, equipment, improvements and certain other intangibles assets	(98)	(26)	0
Tenant improvement allowance	1,000	0	0
Transfer of inventory to property, equipment and improvements	(1,838)	(1,363)	(1,064)
Term debt refinanced as credit facility	(6,200)	(5,100)	0
Term debt refinanced as credit facility	$ 50,000	$ 0	$ 0

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment from adoption of ASU 2016-09	$ 330,493	$ 338	$ (54,216)	$ 255,936	$ 151,961	$ (23,526)
Beginning balance at Sep. 30, 2018	330,493	$ 338	$ (54,216)	255,936	151,961	(23,526)
Beginning balance (in shares) at Sep. 30, 2018		33,813	6,385
Increase (Decrease) in Stockholders' Equity [Roll Forward]
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)
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)
Net income	10,366				10,366
Other comprehensive income (loss)	$ 1,071					1,071
Stock Issued During Period, Shares, New Issues	4,025	4,025
Stock Issued During Period, Value, New Issues	$ 73,830	$ 40		73,790
Stockholders' Equity, Other	(4)				(4)
Employee stock purchase issuances (in shares)			(79)
Employee stock purchase issuances	1,214		$ 694	520
Repurchase of common stock (in shares)			117
Repurchase of common stock	(2,120)		$ (2,120)
Issuance of stock under stock award plans (in shares)		1,115
Issuance of stock under stock award plans	8,525	$ 12		8,513
Stock-based compensation expense	8,135			8,135
Ending balance (in shares) at Sep. 30, 2021		40,653	6,391
Ending balance at Sep. 30, 2021	472,517	$ 407	$ (56,535)	370,699	180,692	(22,746)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment from adoption of ASU 2016-09	$ 472,517	$ 407	$ (56,535)	$ 370,699	$ 180,692	$ (22,746)

Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business Description

We are a leading global provider of business and mission-critical 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.

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 and 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.

Accounts Receivable

Accounts receivable are stated at the amount we expect to collect. This amount is net of an allowance for credit losses 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 credit losses. Based on our assessment, we provide for estimated uncollectible amounts through a charge to earnings and a credit to our allowance for credit losses. Balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the allowance for credit losses 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.

The following table presents a reconciliation of the allowance for credit losses (in thousands):


	Year ended September 30,
	2021		2020
Balance at beginning of period	$	3,778	$	968
Additions	2,803		2,534
Uncollectible accounts charged to allowance, net of recoveries	(2,647)		276
Balance at end of period	$	3,934	$	3,778

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 39 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 2021, 2020 or 2019.

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). Effective with the reorganization announcement on October 7, 2020 (see Note 10), our IoT Products & Services business is now structured to include four reporting units under the IoT Products & Services segment, each with a reporting manager: Cellular Routers, Console Servers, OEM Solutions and Infrastructure Management. We have four reporting units along with our IoT Solutions segment that have been tested individually for impairment.

Due to the reorganization on October 7, 2020 (see Note 10), we performed an interim impairment test in addition to our annual test as of June 30, 2021. Our goodwill impairment tests as of October 7, 2020 and June 30, 2021 indicated no impairment (see Note 3). During the fourth quarter of fiscal 2021, we assessed various qualitative factors to determine whether or not an additional goodwill impairment assessment was required as of September 30, 2021, and we concluded that no additional impairment assessment was required.

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

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 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 and issued pursuant to the Employee Stock Purchase Plan.

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.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Subscription and Support Services Revenue

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

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.

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.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 2021, 2020 and 2019 there were net transaction (losses) gains of $(0.1) million, $(0.6) million and $0.4 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):


	Year ended September 30,
	2021		2020		2019
Numerator:
Net income	$	10,366	$	8,411	$	9,958
Denominator:
Denominator basic net income per common share — weighted average shares outstanding	32,111		28,849		27,905
Effect of dilutive securities:
Stock options and restricted stock units	1,283		697		649
Denominator diluted net income per common share — adjusted weighted average shares	33,394		29,546		28,554

Net income per common share, basic	$	0.32	$	0.29	$	0.36
Net income per common share, diluted	$	0.31	$	0.28	$	0.35

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. For the years ended September 30, 2021, 2020 and 2019, such excluded stock options were 35,160, 1,143,411 and 744,513, respectively.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Potential Impacts of COVID-19 on our Business

The impact of the coronavirus ("COVID-19") pandemic coIntinues to unfold. The extent of the pandemic's effect on our operational and financial performance will depend in large part on future developments, which cannot be reasonably estimated at this time. Future developments include the duration, scope and severity of the pandemic, the actions taken to contain or mitigate its impact both within and outside the jurisdictions where we operate, the impact on governmental programs and budgets, the development of treatments or vaccines, and the timing and level of resumption of widespread economic activity. Due to the inherent uncertainty of the unprecedented and rapidly evolving situation, we are unable to predict with any confidence the likely impact of the COVID-19 pandemic on our future operations. For a more detailed discussion see Part I, Item 1 and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of this Form 10-K.

Recent Accounting Developments

Adopted

In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance changes the disclosure requirements on fair value measurements. We adopted this standard in the first quarter of fiscal 2021. This standard did not 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 expected credit losses. We adopted this standard in the first quarter of fiscal 2021, following the modified-retrospective approach. This standard did not have a material impact on our consolidated financial statements.

Issued

In October 2021, FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This update requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. ASU 2021-08 is effective for our fiscal year beginning after September 30, 2021. We are currently evaluating the impact that adopting this new accounting standard would have on our condensed consolidated financial statements, but do not believe it will have a material effect.

Acquisitions

12 Months Ended

Sep. 30, 2021

Business Combinations [Abstract]

ACQUISITIONS

Fiscal 2021 Acquisitions

Acquisition of Haxiot, Inc.

On March 26, 2021, we acquired Haxiot, Inc. ("Haxiot"), a Dallas-based provider of low power wide area ("LPWA") wireless technology. The results of operations are now included in our third quarter of fiscal 2021 results within our IoT Products & Services segment. We believe this is a complementary acquisition for us as it significantly enhances our IoT Products & Services segment by enhancing Digi's embedded systems portfolio and immediately extends the company's market reach with a complete LoRaWAN®-based solutions offering.

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 $7.1 million of cash on hand. The future earn-out payments are based on Haxiot revenue performance and contractually are not to exceed $3.0 million and $5.0 million for the annual periods ending December 31, 2021 and December 31, 2022. The fair value amount of these earn-outs for the annual periods ending December 31, 2021 and December 31, 2022 are $— million and $5.9 million, respectively. In the third quarter of fiscal 2021, the preliminary purchase price allocation was updated, including related determination of fair value and income tax implications. As a result, we adjusted goodwill to $8.6 million and adjusted contingent consideration to $5.9 million.

For tax purposes, this acquisition is treated as a stock acquisition. The goodwill therefore is not deductible.

2. ACQUISITIONS (CONTINUED)

Costs directly related to the acquisition of $0.3 million in fiscal 2021 have been charged to operations and are included in general and administrative expense in our consolidated statements of operations. These acquisition costs include legal, accounting, valuation and investment banking fees.

The following table summarizes the preliminary fair values of Haxiot assets acquired, net of $50 thousand of cash acquired, and liabilities assumed as of the acquisition date (in thousands).


Cash	$	7,096
Contingent consideration	5,900
Total	$	12,996

Fair value of net tangible assets acquired	$	86
Identifiable intangible assets:
Customer relationships	3,900
Purchased and core technology	1,050
Trademarks	500
Deferred tax liability on identifiable intangible assets	(1,145)
Goodwill	8,605
Total	$	12,996

Acquisition of Ctek, Inc.

On July 6, 2021, we acquired Ctek, Inc. ("Ctek"), a San Pedro, California-based provider that specializes in solutions for remote monitoring and industrial controls. The results of operations of Ctek are included in our fourth quarter fiscal 2021 results within our IoT Products & Services segment. Through the acquisition of Ctek, Digi is uniquely positioned to provide customers with both battery and hardwired options for the control and monitoring of critical infrastructure, from complex off-shore oil rig locations to localized deployments such as municipal park lighting. In addition, Ctek’s offering and existing client portfolio is set to further Digi’s reach in a rapidly expanding market.

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 $12.0 million of cash on hand. The future earn-out payments are based on revenue performance outlined in the terms of the purchase agreement for the annual periods ending December 31, 2021, December 31, 2022 and December 31, 2023. The cumulative amount of these earn-outs for the annual periods will not exceed $0.5 million, $1.0 million and $1.5 million, respectively. Due to the timing of the acquisition, the purchase price allocation, including related determinations of fair value and income tax implications, are in process.

For tax purposes, this acquisition is treated as a stock acquisition. The goodwill therefore is not deductible.

Costs directly related to the acquisition of $0.3 million incurred in fiscal 2021 have been charged to operations and are included in general and administrative expense in our consolidated statements of operations. These acquisition costs include legal, accounting, valuation and investment banking fees.

2. ACQUISITIONS (CONTINUED)

The following table summarizes the preliminary fair values of Ctek assets acquired and liabilities assumed as of the acquisition date (in thousands).


Cash	$	12,012
Contingent consideration	300
Working capital adjustment	422
Total	$	12,734

Fair value of net tangible assets acquired	397
Identifiable intangible assets:
Customer relationships	5,100
Purchased and core technology	1,300
Trademarks	70
Backlog	1,000
Goodwill	4,867
Total	$	12,734

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 7 to the consolidated financial statements). The earn-out payments were 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, could have been up to $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 final payment of $10.0 million for the period ended December 31, 2020 was paid during the second quarter of fiscal 2021 (see Note 6 to the consolidated financial statements).

During the first quarter of fiscal 2021, we recorded an out-of-period adjustment in connection with the purchase price accounting of Opengear. This balance sheet adjustment resulted in a decrease in fair value of net tangible assets acquired of $1.1 million, a decrease of $0.3 million to non-current deferred tax liability and an increase to goodwill of $0.8 million. Management assessed the impact of this adjustment and believes, after considering both quantitative and qualitative factors, that it is not material to our current or previously issued 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.

Costs directly related to the acquisition of $0.3 million incurred in fiscal 2019, $2.7 million incurred in fiscal 2020 and $0.3 million incurred in fiscal 2021 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.

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	$	18,096
Identifiable intangible assets:
Customer relationships	79,000
Purchased and core technology	18,100
Trademarks	8,000
Deferred tax liability on identifiable intangible assets	(27,126)
Goodwill	57,088
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.

Goodwill and other Identifiable Intangible Assets
$ in Thousands

12 Months Ended

Sep. 30, 2021

USD ($)

segment

Jun. 30, 2021

USD ($)

Oct. 07, 2020

USD ($)

Sep. 30, 2020

USD ($)

Sep. 30, 2019

USD ($)

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, 2021 and 2020 were comprised of the following (in thousands):


	September 30, 2021						September 30, 2020
	Gross carrying amount		Accum. amort.		Net		Gross carrying amount		Accum. amort.		Net
Purchased and core technology	$	69,162	$	(50,701)	$	18,461	$	76,011	$	(55,482)	$	20,529
License agreements	112		(112)		—		112		(112)		—
Patents and trademarks	23,491		(14,978)		8,513		22,836		(13,535)		9,301
Customer relationships	130,278		(39,973)		90,305		125,500		(34,232)		91,268
Non-compete agreements	600		(600)		—		600		(450)		150
Order backlog	1,000		(250)		750		—		—		—
Total	$	224,643	$	(106,614)	$	118,029	$	225,059	$	(103,811)	$	121,248

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.

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

Amortization expense for fiscal years 2021, 2020 and 2019 was as follows (in thousands):


Fiscal year	Total
2021	$	16,534
2020	$	14,754
2019	$	8,818

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


Fiscal year	Total
2022	$	16,570
2023	$	13,579
2024	$	12,865
2025	$	9,408
2026	$	9,176

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


	IoT Products & Services		IoT Solutions		Total
Balance on September 30, 2019	$	103,519	$	49,903	$	153,422
Acquisitions	56,242		—		56,242
Foreign currency translation adjustment	604		(133)		471
Balance on September 30, 2020	$	160,365	$	49,770	$	210,135
Acquisition	13,472		—		13,472
Adjustments	847		—		847
Foreign currency translation adjustment	496		572		1,068
Balance on September 30, 2021	$	175,180	$	50,342	$	225,522

No goodwill impairment has been recorded in any period presented.

Goodwill represents the excess of cost over the fair value of net 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 continue to have 2 reportable segments, our IoT Products & Services segment and our IoT Solutions segment (see Note 4). Effective with the reorganization announcement on October 7, 2020 (see Note 1 0), our IoT Products & Services business is now structured to include four reporting units under the IoT Products & Services segment, each with a reporting manager: Cellular Routers, Console Servers, OEM Solutions and Infrastructure Management. Due to the reorganization, we performed our fiscal third quarter 2021 annual impairment test for those four reporting units along with our IoT Solutions segment.

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 the five reporting units were each estimated on a standalone basis using a weighted combination of the income approach and market approach.

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

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

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.

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.

Results of our Fiscal 2021 Annual Impairment Test

As of June 30, 2021, we had a total of $32.7 million of goodwill for the Enterprise Routers reporting unit, $60.2 million of goodwill for the Console Servers reporting unit, $63.4 million of goodwill for the OEM Solutions reporting unit, $15.4 million of goodwill for the Infrastructure Management reporting unit and $49.5 million of goodwill for the IoT Solutions reporting unit. At June 30, 2021, fair value exceeded the carrying value by more than 20% for all five 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 along with our unallocated assets 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 $686.3 million as of June 30, 2021. This implied a range of control (deficit)/ premiums of (4.5)% to 5.4%. 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.

Results of our October 7, 2020 Interim Impairment Test

As of October 7, 2020, we had a total of $32.7 million of goodwill for the Enterprise Routers reporting unit, $59.2 million of goodwill for the Console Servers reporting unit, $53.3 million of goodwill for the OEM Solutions reporting unit, $15.4 million of goodwill for the Infrastructure Mgmt. reporting unit and $49.5 million of goodwill for the IoT Solutions reporting unit. At October 7, 2020, fair value exceeded the carrying value for all five 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 along with our unallocated assets 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 $472.7 million as of October 7, 2020. This implied a range of control premiums of 5.0% to 10.0%. 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.

Goodwill

$ 225,522

$ 210,135

$ 153,422

Number of reportable segments | segment

Market Capitalization

$ 686,300

$ 472,700

Segment Information and Major Customers

12 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION AND MAJOR CUSTOMERS

We have two reportable operating segments: (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 operating income for both segments and the Chief Operating Decision Maker is reviewing both segments’ financial information separately to make decisions about the allocation of resources. Effective with the reorganization announcement on October 7, 2020 (see Note 1 0), our IoT Products & Services business is now structured to include four operating segments, each with a segment manager.

IoT Products & Services

Our IoT Products & Services segment is composed of the following four operating segments:

•Cellular Routers - box devices (fully enclosed) that provide connectivity typically in a place where the device can be plugged in exclusively using cellular communications.

•Console Servers - similar to cellular routers except they are exclusively for edge computing installations and data center applications exclusively using cellular communications.

•OEM Solutions - Original Equipment Manufacturers ("OEM") will be a chip, rather than a boxed device. This can come in the form of a stand-alone chip, or from a systems-on-module ("SOMs"). While cellular connectivity is used, other communication protocols can be used such as Zigbee, Bluetooth or Radio-Frequency ("RF") based on application.

•Infrastructure Management - includes battery operated, cellular enabled connect sensors as well as other types of console server applications that are more Digi Accelerated Linux ("DAL") based than Console Servers. This operating segment has some products that do not use cellular communications, but a large part of this segment does use cellular communications.

As the four operating segments have similar qualitative and quantitative factors, they are aggregated under the IoT Products & Services reportable segment. The qualitative factors include similar nature of products and services, production process, type or class of customers and methods used to distribute the products. The quantitative factors include similar operating income and gross profit. Our CODM reviews and makes business decisions which includes a primary review of operating income but also includes gross profit. Starting in the quarter ended December 31, 2020, the shared general and administrative costs are now allocated to each operating segment. Thus, our measure of segment profit or loss used by our CODM changed. As a result, our disclosed measure of segment operating income (loss) has been updated for all periods presented. The change to the business segment operating income aligns with the update to how the CODM assesses performance and allocates resources for our business segments.

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 hospitals) and supply chain. The solutions are marketed as SmartSense by Digi®. We initially formed, expanded and enhanced our IoT Solutions segment through four acquisitions, the last of which was completed in October 2017.

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):


	Year ended September 30,
		2021		2020		2019
Revenue
IoT Products & Services		$	264,173	$	249,530	$	215,287
IoT Solutions		44,459		29,741		38,916
Total revenue		$	308,632	$	279,271	$	254,203
Gross Profit
IoT Products & Services		$	144,472	$	129,349	$	100,522
IoT Solutions		22,185		14,623		18,513
Total gross profit		$	166,657	$	143,972	$	119,035
Operating Income (loss)
IoT Products & Services		$	18,212	$	27,216	$	21,806
IoT Solutions		(7,684)		(15,899)		(11,734)
Total operating income		$	10,528	$	11,317	$	10,072
Depreciation and Amortization
IoT Products & Services		$	13,109	$	11,521	$	6,102
IoT Solutions		7,768		7,778		7,294
Total depreciation and amortization		$	20,877	$	19,299	$	13,396

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


	Year ended September 30,
	2021		2020		2019
IoT Products & Services	$	2,257	$	878	$	8,863
IoT Solutions*	—		21		472
Total expended for property, plant and equipment	$	2,257	$	899	$	9,335

* Excluded from this amount is $1.8 million, $1.4 million and $1.1 million of transfers of inventory to property plant and equipment for subscriber assets for the year ended September 30, 2021, 2020 and 2019, respectively.

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


	As of September 30,
	2021		2020
IoT Products & Services	$	386,934	$	387,578
IoT Solutions	80,165		86,975
Unallocated*	152,432		54,129
Total assets	$	619,531	$	528,682

*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,
	2021		2020
United States	$	11,941	$	11,297
International, primarily Europe	191		210
Total net property, equipment and improvements	$	12,132	$	11,507

Our U.S. export sales represented 26.2%, 25.1% and 28.5% of revenue for the fiscal years ended September 30, 2021, 2020 and 2019. 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.

- 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

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+ Details

Selected Balance Sheet Data

12 Months Ended

Sep. 30, 2021

Selected Balance Sheet Data [Abstract]

SELECTED BALANCE SHEET DATA

The following table shows selected balance sheet data (in thousands):


	As of September 30,
	2021		2020
Accounts receivable, net:
Accounts receivable	$	51,828	$	65,027
Less allowance for credit losses	3,934		3,778
Less reserve for future credit returns and pricing adjustments	4,156		2,022
Total accounts receivable, net	$	43,738	$	59,227

Inventories:
Raw materials	$	27,265	$	14,009
Work in process	14		—
Finished goods	16,642		37,559
Total inventories	$	43,921	$	51,568

Property, equipment and improvements, net:
Land	$	570	$	570
Buildings	2,338		2,338
Improvements	9,367		7,844
Equipment	16,878		17,153
Purchased software	2,868		3,770
Furniture and fixtures	2,174		3,236
Subscriber assets	6,982		5,104
Total property, equipment and improvements, gross	41,177		40,015
Less accumulated depreciation and amortization	29,045		28,508
Total property, equipment and improvements, net	$	12,132	$	11,507

Fair Value Measurements

12 Months Ended

Sep. 30, 2021

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 2021.

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, 2021 using:
	Total carrying value at September 30, 2021		Quoted price in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)







Liabilities:
Contingent consideration on acquired business	$	6,200	$	—	$	—	$	6,200
Total liabilities measured at fair value	$	6,200	$	—	$	—	$	6,200


			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 businesses	$	4,228	$	—	$	—	$	4,228
Total liabilities measured at fair value	$	4,228	$	—	$	—	$	4,228

In connection with the October 2015 acquisition of Bluenica, we agreed 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. 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. 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. We paid the first installment of $0.9 million during the third quarter of fiscal 2020. We paid the final installment of $10.0 million during the second quarter of fiscal 2021.

In connection with our acquisition of Haxiot, we agreed to make contingent earn-out payments, based upon certain revenue thresholds (see Note 2 to the consolidated financial statements). In the fiscal third quarter of fiscal 2021, the preliminary purchase price allocation was updated, including related determination of fair value and income tax implications. As a result, we adjusted goodwill to $8.6 million and adjusted contingent consideration to $5.9 million on our balance sheet.

6. FAIR VALUE MEASUREMENTS (CONTINUED)

In connection with our acquisition of Ctek, we agreed to make contingent earn-out payments, based upon certain revenue thresholds (see Note 2 to the consolidated financial statements). The fair value of the remaining liability for contingent consideration for the acquisition of Ctek was $0.3 million at September 30, 2021.

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):


	Year ended September 30,
	2021		2020
Fair value at beginning of period	$	4,228	$	5,407
Purchase price contingent consideration	6,200		5,100
Contingent consideration payments	(10,000)		(6,151)
Change in fair value of contingent consideration	5,772		(128)
Fair value at end of period	$	6,200	$	4,228

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. Due to the timing of the acquisition, the fair value of the contingent consideration at September 30, 2021 is based on the probability of achieving the specified revenue thresholds for Haxiot and Ctek. As of September 30, 2021, contingent consideration associated with Haxiot and Ctek remain subject to future performance through December 31, 2022 and 2023, respectively.

- 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, 2021

Debt Disclosure [Abstract]

DEBT

INDEBTEDNESS

On March 15, 2021, we entered into an amended and restated credit agreement with BMO Harris Bank N.A. ("BMO"). This agreement provides us with a senior secured credit facility (the "Credit Facility") consisting of a $200 million revolving loan (the "Revolving Loan"). This loan replaced our syndicated senior secured credit agreement with BMO that was entered into on December 13, 2019 and replaced the remaining balance of our term loan with this new revolver. This prior agreement provided us with committed credit facilities ("Prior Credit Facility") totaling $150 million, which included a $50 million term loan and a $100 million revolving loan. We may use the Revolving Loan for working capital, capital expenditures, restricted payments and acquisitions permitted under the agreement.

Borrowings under the Credit Facility bear a variable interest rate of LIBOR plus an applicable margin spread from 1.25% to 3.25%. 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, 2021 was 1.34%.

The debt issuance costs under the Prior Credit Facility totaled $2.6 million and is being amortized using the straight-line method over the term of the loan and reported in interest expense. The credit facility amendment was determined to be a modification so the existing costs will continue to be amortized over the term of the new facility. The balance remaining at September 30, 2021 was $2.3 million.

The Revolving Loan is due in a lump sum payment at maturity on March 15, 2026. The fair value of the Revolving Loan approximated carrying value at September 30, 2021.

On November 1, 2021, Digi entered into a second amended and restated credit agreement consisting of a $350 million term loan B secured loan and a $35 million revolving credit facility (See Note 17).

7. INDEBTEDNESS (CONTINUED)

The following table is a summary of our long-term indebtedness (in thousands):


	As of September 30,
	2021		2020
Revolving loan	$	48,118	$	15,000
Term loan	—		48,125
Total loans	48,118		63,125
Less unamortized issuance costs	(2,319)		(2,173)
Less current maturities of long-term debt	—		(1,972)
Total long-term debt, net of current portion	$	45,799	$	58,980

The following table is a summary of future maturities of our aggregate long-term debt at September 30, 2021 (in thousands):


Fiscal year	Amount
2022	$	—
2023	—
2024	—
2025	—
2026	48,118
Total long-term debt	$	48,118

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, 2021, we were in compliance with our debt covenants. Amounts borrowed under the Credit Facility are secured by substantially all of our assets.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

Product Warranty Obligation

12 Months Ended

Sep. 30, 2021

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
2021	$	942	$	244	$	(479)	$	707
2020	$	1,012	$	666	$	(736)	$	942
2019	$	1,172	$	305	$	(465)	$	1,012

Leases

12 Months Ended

Sep. 30, 2021

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

9. LEASES (CONTINUED)

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.

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


	Balance Sheet Location	September 30, 2021		September 30, 2020
Assets
Operating leases	Operating lease right-of-use assets	$	15,684	$	14,334
Total lease assets		$	15,684	$	14,334

Liabilities

Operating leases	Current portion of operating lease liabilities	$	2,633	$	2,527

Operating leases	Operating lease liabilities	18,368		16,193
Total lease liabilities		$	21,001	$	18,720

The following were the components of our lease cost which is recorded in both cost of goods sold and selling, general and administrative expense (in thousands):


	Statement of Operations Location	Year ended September 30, 2021		Year ended September 30, 2020
Operating lease cost	Cost of goods sold and SG&A	$	3,504	$	3,341
Variable lease cost	Cost of goods sold and SG&A	1,094		744
Short-term lease cost	Cost of goods sold and SG&A	127		175
Total lease cost		$	4,725	$	4,260

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


	Year ended September 30, 2021		Year ended September 30, 2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,707	$	2,893
Right-of-use assets obtained in exchange for new operating lease liabilities	3,785		1,073
Non-cash tenant improvement allowance	$	1,000	$	—


	September 30, 2021
Weighted average remaining lease term - operating leases	8.9 years
Weighted average discount rate - operating leases	3.50	%

9. LEASES (CONTINUED)

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, 2021 (in thousands):


Fiscal year	Amount

2022	$	3,570
2023	3,288
2024	2,945
2025	2,821
2026	2,610
Thereafter	9,394
Total future undiscounted lease payments	24,628
Less imputed interest	(3,627)
Total reported lease liability	$	21,001

Restructuring

12 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

RESTRUCTURING

Q1 FY2021 Restructuring

On October 7, 2020, our Board of Directors approved a reorganization of our IoT Products & Services business segment. The restructuring plan aligns the business segment's organization around product lines. Under this plan, we recorded a charge of $0.7 million for employee termination charges and eliminated 19 employment positions primarily in the U.S. during the three months ended December 31, 2020. In the second quarter of fiscal 2021 we recorded an additional $0.2 million related to this restructuring. In the third quarter of fiscal 2021 we recorded an additional $0.1 million related to this restructuring. The charges relating to this restructuring were fully paid during the fourth quarter of fiscal 2021.

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.

10. RESTRUCTURING (CONTINUED)

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


	2021 Restructuring		2020 Restructuring		Manufacturing Transition		2017 Restructuring
	Employee Termination Costs		Employee Termination Costs		Employee Termination Costs		Employee Termination Costs		Other		Total
Balance at September 30, 2018	$	—	$	—	$	147	$	293	$	13	$	453
Restructuring charge	—		—		—		—		—		—
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)
Foreign currency fluctuation	—		—		—		—		—		—
Balance at September 30, 2020	—		—		—		—		—		—
Restructuring charge	995		—		—		—		—		995
Payments	(935)		—		—		—		—		(935)
Reversals	—		—		—		—		—		—
Foreign currency fluctuation	(60)		—		—		—		—		(60)
Balance at September 30, 2021	$	—	$	—	$	—	$	—	$	—	$	—

Revenue

12 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

REVENUE

Revenue Disaggregation

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


	Year ended September 30,
($ in thousands)	2021		2020		2019
North America, primarily the United States	$	227,923	$	213,487	$	184,022
Europe, Middle East & Africa	46,024		40,076		39,896
Rest of world	34,685		25,708		30,285
Total revenue	$	308,632	$	279,271	$	254,203

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


	Year ended September 30,
($ in thousands)	2021		2020		2019
Transferred at a point in time	$	274,960	$	253,371	$	231,387
Transferred over time	33,672		25,900		22,816
Total revenue	$	308,632	$	279,271	$	254,203

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.

11. REVENUE (CONTINUED)

The total net book value of subscriber assets was $1.9 million at September 30, 2021 and $2.0 million at September 30, 2020 and is included in property, equipment and improvements, net. Depreciation expense for these subscriber assets was $1.9 million, $1.5 million and $1.1 million for fiscal 2021, 2020 and 2019, 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:


	Year ended September 30,
($ in thousands)	2021		2020		2019
Unearned revenue, beginning of period	$	9,341	$	5,025	$	3,933
Billings	48,972		35,213		43,071
Revenue recognized	(42,825)		(30,897)		(41,979)
Unearned revenue, end of period	$	15,488	$	9,341	$	5,025

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, 2021 approximately $17.4 million of revenue is expected to be recognized from remaining performance obligations for subscriptions contracts. We expect to recognize revenue on approximately $14.4 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
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+ Details

Income Taxes

12 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

12. INCOME TAXES

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


	Year ended September 30,
	2021		2020		2019
United States	$	5,380	$	3,756	$	7,981
International	3,619		3,707		3,164
Income before income taxes	$	8,999	$	7,463	$	11,145

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


	Year ended September 30,
	2021		2020		2019
Current:
Federal	$	1,388	$	709	$	950
State	242		572		290
Foreign	1,678		1,128		746
Deferred:
Federal	(3,627)		(2,911)		(825)
State	(618)		—		—
Foreign	(430)		(446)		26
Income tax (benefit) expense	$	(1,367)	$	(948)	$	1,187

12. INCOME TAXES (CONTINUED)

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


	As of September 30,
	2021		2020

Non-current deferred tax asset	$	439	$	389

Non-current deferred tax liability	(13,493)		(17,171)
Net deferred tax liability	$	(13,054)	$	(16,782)

Depreciation and amortization	$	(1,399)	$	(1,037)
Lease asset	(3,683)		(3,415)
Lease liability	4,941		4,477
Inventories	755		979
Compensation costs	4,064		3,698
Other accruals	6,387		3,985
Tax credit carryforwards	3,026		6,021
Valuation allowance	(2,186)		(4,372)
Identifiable intangible assets	(24,959)		(27,118)

Net deferred tax (liability) asset	$	(13,054)	$	(16,782)

As of September 30, 2021, we had $2.5 million of tax carryforwards (net of reserves) related to state research and development tax credits. We also had $0.5 million of carryforwards consisting of a U.S. net operating losses of $0.2 million, non-U.S. net operating losses of $0.2 million and foreign tax credits of $0.1 million. The majority of our 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.

12. INCOME TAXES (CONTINUED)

Our valuation allowance for certain U.S. and foreign locations was $2.2 million at September 30, 2021 and $4.4 million at September 30, 2020. The decrease in valuation allowance is primarily the result of the expiring U.S. capital loss carryforward of which had a corresponding valuation allowance. The deferred tax assets realized could vary if there are differences in the timing or amount of future reversals of existing deferred tax liabilities or changes in the amounts of future taxable income. If future taxable income projections are not realized, an additional valuation allowance may be required. This would be reflected as income tax expense at the time that any such change in future taxable income is determined.

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


	Year ended September 30,
	2021		2020		2019
Statutory income tax amount	$	1,890	$	1,567	$	2,341
Increase (decrease) resulting from:
State taxes, net of federal benefits	319		392		196


Transaction costs	60		143		—
Employee stock purchase plan	79		127		59
Foreign operations	556		431		225
Non-deductible executive compensation	150		115		171
Change in valuation allowance	(2,187)		173		520
Capital Loss Expiration	2,301		—		—
Utilization of research and development tax credits	(3,116)		(2,881)		(2,173)

Deferred balance sheet remeasure	(952)		—		9
ASU 2016-09 excess stock compensation	(1,131)		(673)		(56)
Contingent consideration	1,212		(27)		250
Changes from provision to return	(458)		(111)		(511)
Adjustment of tax contingency reserves	329		151		146
U.S. deduction for foreign export sales	(630)		(355)		(146)


Global intangible low-taxed income	33		31		162
Other, net	178		(31)		(6)
Income tax (benefit) expense	$	(1,367)	$	(948)	$	1,187

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.

12. INCOME TAXES (CONTINUED)

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


	Year ended September 30,
	2021		2020		2019
Unrecognized tax benefits at beginning of fiscal year	$	2,600	$	1,713	$	1,561
Increases related to:
Prior year income tax positions	40		756		9
Current year income tax positions	507		425		314
Decreases related to:
Prior year income tax positions	(155)		—		(34)
Settlements	—		(7)		—
Expiration of statute of limitations	(84)		(287)		(137)
Unrecognized tax benefits at end of fiscal year	$	2,908	$	2,600	$	1,713

The total amount of unrecognized tax benefits ("UTB") at September 30, 2021 that, if recognized, would affect our effective tax rate was $2.7 million. We expect that it is reasonably possible that the total amounts of UTB will decrease by approximately $0.8 million over the next 12 months due to the expiration of various statutes of limitations. Of the $2.9 million of UTB, $2.3 million is included in non-current income taxes payable and $0.6 million is included with non-current deferred tax assets on the consolidated balance sheets at September 30, 2021.

We recognize interest and penalties related to income tax matters in income tax expense. During fiscal 2021 and 2020, 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, 2021 and 2020. 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 2017. We are currently under U.S. federal examination for fiscal years 2018, and there is otherwise very limited audit activity of our income tax returns in U.S. state jurisdictions or international jurisdictions.

At September 30, 2021, 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, 2021, 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

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+ Details

Equity	12 Months Ended
Equity	Sep. 30, 2021
Equity [Abstract]
Stockholders' Equity Note Disclosure	STOCKHOLDERS' EQUITY Public Offering of Common Stock During March 2021 we sold 4,025,000 shares of our common stock at a public offering price of $19.50 per share. The shares offered were registered pursuant to a registration statement that we filed with the Securities and Exchange Commission. We received net proceeds of $73.8 million, net of transaction expenses of $0.3 million related to the public offering. We intend to use the proceeds for working capital and general corporate purposes. We may, in the future, use the proceeds to acquire or invest in complementary businesses, products and technologies.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Stock-Based Compensation

12 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

14. STOCK-BASED COMPENSATION

Stock-based awards were granted under the 2021 Omnibus Incentive Plan (the "2021 Plan") beginning January 29, 2021. Prior to that date, such awards made in fiscal 2021 were granted under the 2020 Omnibus Incentive Plan (the "2020 Plan"). Upon stockholder approval of the 2021 Plan, we ceased granting awards under the 2020 Plan. Shares subject to awards under the 2020 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 2021 Plan. The authority to grant options under the 2021 Plan and set other terms and conditions rests with the Compensation Committee of the Board of Directors.

The 2021 Plan authorizes the issuance of up to 1,400,000 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 2021 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. Performance stock unit awards ("PSUs") that have been granted to an executive will vest based on achievement of a cumulative adjusted earnings per share metric measured over a three-year period. Share-based compensation expenses recorded for this performance award is reevaluated at each reporting period based on the probability of achievement of the goal. The 2021 Plan is scheduled to expire on January 28, 2031. Options under the 2021 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 and PSUs 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 or performance stock units, we issue new shares of stock. As of September 30, 2021, there were approximately 1,413,615 shares available for future grants under the 2021 Plan.

The 2020 Plan, under which grants ceased upon approval of the 2021 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 2020 Plan typically vested over a four-year period and expired if unexercised after seven years from the date of grant. Restricted stock unit awards ("RSUs") that were granted to directors typically vested in one year. RSUs that were granted to executives and employees typically vested in January over a four-year period. Awards may no longer be granted under the 2020 Plan as grants ceased upon approval of the 2021 Plan effective January 29, 2021 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.

Cash received from the exercise of stock options was $8.5 million, $5.9 million and $4.9 million for the twelve months ended September 30, 2021, 2020 and 2019, respectively.

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 2021, 2020 and 2019 our employees forfeited 116,195, 103,492 and 93,128 shares, respectively in order to satisfy $2.1 million, $1.8 million and $1.1 million, respectively, of withholding tax obligations related to stock-based compensation, pursuant to terms of awards under our board and shareholder-approved compensation plans.

14. STOCK-BASED COMPENSATION (CONTINUED)

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 $1.2 million, $1.1 million and $1.1 million in fiscal 2021, 2020 and 2019, respectively. Pursuant to the Purchase Plan, 78,644, 117,826, and 111,036 shares of common stock were issued to employees during fiscal 2021, 2020 and 2019, respectively. Shares are issued under the Purchase Plan from treasury stock. As of September 30, 2021, 633,070 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):


	Year ended September 30,
	2021		2020		2019
Cost of sales	$	371	$	291	$	174
Sales and marketing	2,069		2,318		1,708
Research and development	1,032		1,197		996
General and administrative	4,663		3,431		2,777
Stock-based compensation before income taxes	8,135		7,237		5,655
Income tax benefit	(1,755)		(1,523)		(1,174)
Stock-based compensation after income taxes	$	6,380	$	5,714	$	4,481

Stock Options

Below is a summary of our stock options as of September 30, 2021 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, 2020	3,393	$12.20
Granted	531	17.78
Exercised	(742)	11.47
Forfeited / Canceled	(230)	14.66
Balance at September 30, 2021	2,952	$13.20	3.6	$	23,232

Exercisable at September 30, 2021	1,927	$11.55	2.5	$	18,246

(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $21.02 as of September 30, 2021, 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, 2021, 2020 and 2019 was $6.5 million, $3.7 million and $2.1 million, respectively.

14. STOCK-BASED COMPENSATION (CONTINUED)

The table below shows the weighted average fair value, which was determined based upon the fair value of each option on the grant date utilizing the Black-Scholes option-pricing model and the related assumptions:


	Year ended September 30,
	2021		2020		2019
Weighted average per option grant date fair value	$	6.97	$	6.17	$	4.48
Assumptions used for option grants:
Risk free interest rate	0.51% - 1.035%		0.37% - 1.73%		1.60% - 2.93%
Expected term	6.00 years		6.00 years		6.00 years
Expected volatility	44% - 46%		36% - 44%		33% - 35%
Weighted average volatility	45%		36%		34%
Expected dividend yield	0%		0%		0%

The fair value of each option award granted during the periods presented was estimated using the Black-Scholes option valuation model that uses the assumptions noted in the above table. Expected volatilities are based on the historical volatility of our stock. We use historical data to estimate option exercise and employee termination information within the valuation model. The expected term of options granted is derived from the vesting period and historical information and represents the period of 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, 2021, the total unrecognized compensation cost related to non-vested stock-based compensation arrangements, net of expected forfeitures, was $5.7 million. The related weighted average period over which this cost is expected to be recognized was approximately 1.8 years.

As of September 30, 2021, 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 - $9.35	463	1.26	$	8.44	463	$	8.44
$9.70 - $10.81	470	2.00	$	10.32	455	$	10.32
$10.96 - $11.87	463	3.64	$	11.55	323	$	11.57
$12.48 - $13.50	414	2.15	$	13.14	413	$	13.14
$13.76 - $16.75	453	5.64	$	15.28	93	$	13.81
$17.10 - $17.94	593	5.53	$	17.56	171	$	17.75
$18.20 - $25.15	96	6.20	$	21.63	9	$	18.20
$7.40 - $25.15	2,952	3.57	$	13.20	1,927	$	11.55

The total grant date fair value of shares vested was $2.6 million, $3.7 million and $3.5 million in each of fiscal 2021, 2020 and 2019, respectively.

14. STOCK-BASED COMPENSATION (CONTINUED)

Non-vested Stock Units

The following table presents a summary of our non-vested restricted stock units as of September 30, 2021 and changes during the twelve months then ended (in thousands, except per common share amounts):


	RSUs			PSUs
	Number of Awards	Weighted Average Grant Date Fair Value		Number of Awards	Weighted Average Grant Date Fair Value
Nonvested at September 30, 2020	972	$	13.20	—	$	—
Granted	366	$	18.76	18	$	25.15
Vested	(373)	$	12.80	—	$	—
Canceled	(153)	$	14.12	—	$	—
Nonvested at September 30, 2021	812	$	15.72	18	$	25.15

As of September 30, 2021, the total unrecognized compensation cost related to non-vested restricted stock units was $9.2 million. The related weighted average period over which this cost is expected to be recognized was approximately 1.3 years.

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Sep. 30, 2021
Retirement Benefits [Abstract]
EMPLOYEE BENEFIT PLANS	EMPLOYEE BENEFIT PLANSWe 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.We provide 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. The employer matching contribution was reinstated for all employees after a suspension effective May 3, 2020 and ending on December 31, 2020 in the United States and Canada. We provided matching contributions of $2.4 million for fiscal 2021, $1.7 million for fiscal 2020 and $1.8 million for fiscal 2019.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES Leases We lease certain of our buildings and equipment under noncancelable lease agreements. Please refer to Note 9 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 Digi 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 alleged damages of just over CAD 1.0 million. During the second quarter of fiscal 2021, the lawsuit was settled and no payment will be made by us. However, we will be providing DimOnOff reduced product pricing on a limited number of products for an amount substantially lower than what was claimed in the lawsuit. In addition to the matter discussed above, in the normal course of business, we are presently, and expect in the future to be, subject to various claims and litigation with third parties such as non-practicing intellectual property entities as well as customers, vendors and/or employees. There can be no assurance that any claims by third parties, if proven to have merit, will not materially adversely affect our business, liquidity or financial condition.

Subsequent Events	12 Months Ended
Subsequent Events	Sep. 30, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENTS Acquisition of Ventus Holdings On November 1, 2021, we acquired Ventus Networks, LLC for approximately $348 million in cash. Ventus is a privately-held leader in MNaaS solutions that simplify the complexity of enterprise WAN connectivity. The acquisition was funded through a combination of cash on hand and debt financing under a $350 million credit facility committed by BMO Harris Bank N.A. Due to the timing of the acquisition, preliminary purchase price allocation has not yet been completed. Second Amended and Restated Senior Secured Credit Facility On November 1, 2021, Digi entered into a second amended and restated credit agreement consisting of a $350 million term loan B secured loan and a $35 million revolving credit facility. The $35 million revolving credit facility, which presently has no outstanding balance, includes a $10 million letter of credit subfacility and $10 million swingline subfacility. Amounts under the term loan will be repaid in quarterly installments on the last day of each fiscal quarter, with an annual amortization rate of 1%. The remaining outstanding balance is due to be repaid in full after seven years. Borrowings under this credit facility bear a variable interest rate of LIBOR plus an applicable margin spread from 3.75% to 4.00%. 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. If we are unable to generate sufficient cash flow or otherwise obtain funds necessary to make required payments on the Loan, we will be in default. We are also required to comply with several financial covenants under the Credit Agreement. Our ability to comply with such financial covenants may be affected by events beyond our control, which could result in a default under the Credit Agreement; such default may have a material adverse effect on our business, financial condition, operating results or cash flows. The Term Loan contains some affirmative covenants and the Revolving Credit Facility contains customary affirmative and negative covenants, including covenants that restrict the ability of Digi and its subsidiaries to incur additional indebtedness, dispose of significant assets, make certain investments, including any acquisitions other than permitted acquisitions, make certain payments, enter into sale and leaseback transactions, grant liens on its assets or rate management transactions, subject to certain limitations. These restrictions could adversely affect our business.

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Sep. 30, 2021

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, 2021	$	4,372	$	(2,186)	$	—	$	—	$	2,186
September 30, 2020	$	3,810	$	670	$	—	$	108	$	4,372
September 30, 2019	$	3,291	$	529	$	—	$	10	$	3,810






Reserve for future credit returns and pricing adjustments
September 30, 2021	$	1,476	$	15,477	$	—	$	16,023	$	930
September 30, 2020	$	2,677	$	17,816	$	—	$	19,017	$	1,476
September 30, 2019	$	2,560	$	12,640	$	—	$	12,523	$	2,677

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Sep. 30, 2021

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.

Accounting Estimates

Cash Equivalents

Cash and Cash Equivalents

Accounts Receivable

The following table presents a reconciliation of the allowance for credit losses (in thousands):


	Year ended September 30,
	2021		2020
Balance at beginning of period	$	3,778	$	968
Additions	2,803		2,534
Uncollectible accounts charged to allowance, net of recoveries	(2,647)		276
Balance at end of period	$	3,934	$	3,778

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

Identifiable Intangible Assets

Goodwill

Contingent Consideration

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Warranties

Treasury stock

Treasury Stock

Revenue Recognition

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

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

•identification of the performance obligations in the contract;

•determination of the transaction price;

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

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

Hardware Product Revenue and SmartSense by Digi® Equipment Revenue and Associated Installation Fees

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Subscription and Support Services Revenue

Professional Services Revenue

Contracts with Multiple Performance Obligations

Research and Development

Income Taxes

Stock-Based Compensation

Foreign Currency Translation

Foreign Currency TranslationFinancial 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 2021, 2020 and 2019 there were net transaction (losses) gains of $(0.1) million, $(0.6) million and $0.4 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

Net Income Per Common Share

Potential Impacts of COVID-19 on Our Business

Potential Impacts of COVID-19 on our Business

Recent Accounting Developments

Adopted

Issued

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Accounts Receivable, Allowance for Credit Loss

The following table presents a reconciliation of the allowance for credit losses (in thousands):


	Year ended September 30,
	2021		2020
Balance at beginning of period	$	3,778	$	968
Additions	2,803		2,534
Uncollectible accounts charged to allowance, net of recoveries	(2,647)		276
Balance at end of period	$	3,934	$	3,778

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):


	Year ended September 30,
	2021		2020		2019
Numerator:
Net income	$	10,366	$	8,411	$	9,958
Denominator:
Denominator basic net income per common share — weighted average shares outstanding	32,111		28,849		27,905
Effect of dilutive securities:
Stock options and restricted stock units	1,283		697		649
Denominator diluted net income per common share — adjusted weighted average shares	33,394		29,546		28,554

Net income per common share, basic	$	0.32	$	0.29	$	0.36
Net income per common share, diluted	$	0.31	$	0.28	$	0.35

Acquisitions (Tables)

12 Months Ended

Sep. 30, 2021

Haxiot

Business Acquisition [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair values of Haxiot assets acquired, net of $50 thousand of cash acquired, and liabilities assumed as of the acquisition date (in thousands).


Cash	$	7,096
Contingent consideration	5,900
Total	$	12,996

Fair value of net tangible assets acquired	$	86
Identifiable intangible assets:
Customer relationships	3,900
Purchased and core technology	1,050
Trademarks	500
Deferred tax liability on identifiable intangible assets	(1,145)
Goodwill	8,605
Total	$	12,996

Ctek

Business Acquisition [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair values of Ctek assets acquired and liabilities assumed as of the acquisition date (in thousands).


Cash	$	12,012
Contingent consideration	300
Working capital adjustment	422
Total	$	12,734

Fair value of net tangible assets acquired	397
Identifiable intangible assets:
Customer relationships	5,100
Purchased and core technology	1,300
Trademarks	70
Backlog	1,000
Goodwill	4,867
Total	$	12,734

Opengear

Business Acquisition [Line Items]

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	$	18,096
Identifiable intangible assets:
Customer relationships	79,000
Purchased and core technology	18,100
Trademarks	8,000
Deferred tax liability on identifiable intangible assets	(27,126)
Goodwill	57,088
Total	$	153,158

Goodwill and other Identifiable Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Amortizable Identifiable Intangible Assets

Amortizable identifiable intangible assets, net as of September 30, 2021 and 2020 were comprised of the following (in thousands):


	September 30, 2021						September 30, 2020
	Gross carrying amount		Accum. amort.		Net		Gross carrying amount		Accum. amort.		Net
Purchased and core technology	$	69,162	$	(50,701)	$	18,461	$	76,011	$	(55,482)	$	20,529
License agreements	112		(112)		—		112		(112)		—
Patents and trademarks	23,491		(14,978)		8,513		22,836		(13,535)		9,301
Customer relationships	130,278		(39,973)		90,305		125,500		(34,232)		91,268
Non-compete agreements	600		(600)		—		600		(450)		150
Order backlog	1,000		(250)		750		—		—		—
Total	$	224,643	$	(106,614)	$	118,029	$	225,059	$	(103,811)	$	121,248

Schedule of Amortization Expense

Amortization expense for fiscal years 2021, 2020 and 2019 was as follows (in thousands):


Fiscal year	Total
2021	$	16,534
2020	$	14,754
2019	$	8,818

Schedule of Estimated Future Amortization Expense Related to Identifiable Intangible Assets

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


Fiscal year	Total
2022	$	16,570
2023	$	13,579
2024	$	12,865
2025	$	9,408
2026	$	9,176

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, 2019	$	103,519	$	49,903	$	153,422
Acquisitions	56,242		—		56,242
Foreign currency translation adjustment	604		(133)		471
Balance on September 30, 2020	$	160,365	$	49,770	$	210,135
Acquisition	13,472		—		13,472
Adjustments	847		—		847
Foreign currency translation adjustment	496		572		1,068
Balance on September 30, 2021	$	175,180	$	50,342	$	225,522

Segment Information and Major Customers (Tables)

12 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

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


	Year ended September 30,
		2021		2020		2019
Revenue
IoT Products & Services		$	264,173	$	249,530	$	215,287
IoT Solutions		44,459		29,741		38,916
Total revenue		$	308,632	$	279,271	$	254,203
Gross Profit
IoT Products & Services		$	144,472	$	129,349	$	100,522
IoT Solutions		22,185		14,623		18,513
Total gross profit		$	166,657	$	143,972	$	119,035
Operating Income (loss)
IoT Products & Services		$	18,212	$	27,216	$	21,806
IoT Solutions		(7,684)		(15,899)		(11,734)
Total operating income		$	10,528	$	11,317	$	10,072
Depreciation and Amortization
IoT Products & Services		$	13,109	$	11,521	$	6,102
IoT Solutions		7,768		7,778		7,294
Total depreciation and amortization		$	20,877	$	19,299	$	13,396

Payments to Acquire Property, Plant and Equipment by Segment

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


	Year ended September 30,
	2021		2020		2019
IoT Products & Services	$	2,257	$	878	$	8,863
IoT Solutions*	—		21		472
Total expended for property, plant and equipment	$	2,257	$	899	$	9,335

Schedule of Total Assets by Segment

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


	As of September 30,
	2021		2020
IoT Products & Services	$	386,934	$	387,578
IoT Solutions	80,165		86,975
Unallocated*	152,432		54,129
Total assets	$	619,531	$	528,682

*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,
	2021		2020
United States	$	11,941	$	11,297
International, primarily Europe	191		210
Total net property, equipment and improvements	$	12,132	$	11,507

Selected Balance Sheet Data (Tables)

12 Months Ended

Sep. 30, 2021

Selected Balance Sheet Data [Abstract]

Schedule of Selected Balance Sheet Data

SELECTED BALANCE SHEET DATA

The following table shows selected balance sheet data (in thousands):


	As of September 30,
	2021		2020
Accounts receivable, net:
Accounts receivable	$	51,828	$	65,027
Less allowance for credit losses	3,934		3,778
Less reserve for future credit returns and pricing adjustments	4,156		2,022
Total accounts receivable, net	$	43,738	$	59,227

Inventories:
Raw materials	$	27,265	$	14,009
Work in process	14		—
Finished goods	16,642		37,559
Total inventories	$	43,921	$	51,568

Property, equipment and improvements, net:
Land	$	570	$	570
Buildings	2,338		2,338
Improvements	9,367		7,844
Equipment	16,878		17,153
Purchased software	2,868		3,770
Furniture and fixtures	2,174		3,236
Subscriber assets	6,982		5,104
Total property, equipment and improvements, gross	41,177		40,015
Less accumulated depreciation and amortization	29,045		28,508
Total property, equipment and improvements, net	$	12,132	$	11,507

Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2021

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, 2021 using:
	Total carrying value at September 30, 2021		Quoted price in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)







Liabilities:
Contingent consideration on acquired business	$	6,200	$	—	$	—	$	6,200
Total liabilities measured at fair value	$	6,200	$	—	$	—	$	6,200


			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 businesses	$	4,228	$	—	$	—	$	4,228
Total liabilities measured at fair value	$	4,228	$	—	$	—	$	4,228

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):


	Year ended September 30,
	2021		2020
Fair value at beginning of period	$	4,228	$	5,407
Purchase price contingent consideration	6,200		5,100
Contingent consideration payments	(10,000)		(6,151)
Change in fair value of contingent consideration	5,772		(128)
Fair value at end of period	$	6,200	$	4,228

Debt (Tables)

12 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

The following table is a summary of our long-term indebtedness (in thousands):


	As of September 30,
	2021		2020
Revolving loan	$	48,118	$	15,000
Term loan	—		48,125
Total loans	48,118		63,125
Less unamortized issuance costs	(2,319)		(2,173)
Less current maturities of long-term debt	—		(1,972)
Total long-term debt, net of current portion	$	45,799	$	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, 2021 (in thousands):


Fiscal year	Amount
2022	$	—
2023	—
2024	—
2025	—
2026	48,118
Total long-term debt	$	48,118

Product Warranty Obligation (Tables)

12 Months Ended

Sep. 30, 2021

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
2021	$	942	$	244	$	(479)	$	707
2020	$	1,012	$	666	$	(736)	$	942
2019	$	1,172	$	305	$	(465)	$	1,012

Leases (Tables)

12 Months Ended

Sep. 30, 2021

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, 2021		September 30, 2020
Assets
Operating leases	Operating lease right-of-use assets	$	15,684	$	14,334
Total lease assets		$	15,684	$	14,334

Liabilities

Operating leases	Current portion of operating lease liabilities	$	2,633	$	2,527

Operating leases	Operating lease liabilities	18,368		16,193
Total lease liabilities		$	21,001	$	18,720

Components of Lease Cost

The following were the components of our lease cost which is recorded in both cost of goods sold and selling, general and administrative expense (in thousands):


	Statement of Operations Location	Year ended September 30, 2021		Year ended September 30, 2020
Operating lease cost	Cost of goods sold and SG&A	$	3,504	$	3,341
Variable lease cost	Cost of goods sold and SG&A	1,094		744
Short-term lease cost	Cost of goods sold and SG&A	127		175
Total lease cost		$	4,725	$	4,260

Supplemental Disclosures Leases

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


	Year ended September 30, 2021		Year ended September 30, 2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,707	$	2,893
Right-of-use assets obtained in exchange for new operating lease liabilities	3,785		1,073
Non-cash tenant improvement allowance	$	1,000	$	—


	September 30, 2021
Weighted average remaining lease term - operating leases	8.9 years
Weighted average discount rate - operating leases	3.50	%

Operating Lease Liability Maturity


Fiscal year	Amount

2022	$	3,570
2023	3,288
2024	2,945
2025	2,821
2026	2,610
Thereafter	9,394
Total future undiscounted lease payments	24,628
Less imputed interest	(3,627)
Total reported lease liability	$	21,001

Restructuring (Tables)

12 Months Ended

Sep. 30, 2021

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):


	2021 Restructuring		2020 Restructuring		Manufacturing Transition		2017 Restructuring
	Employee Termination Costs		Employee Termination Costs		Employee Termination Costs		Employee Termination Costs		Other		Total
Balance at September 30, 2018	$	—	$	—	$	147	$	293	$	13	$	453
Restructuring charge	—		—		—		—		—		—
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)
Foreign currency fluctuation	—		—		—		—		—		—
Balance at September 30, 2020	—		—		—		—		—		—
Restructuring charge	995		—		—		—		—		995
Payments	(935)		—		—		—		—		(935)
Reversals	—		—		—		—		—		—
Foreign currency fluctuation	(60)		—		—		—		—		(60)
Balance at September 30, 2021	$	—	$	—	$	—	$	—	$	—	$	—

Revenue (Tables)

12 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

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


	Year ended September 30,
($ in thousands)	2021		2020		2019
North America, primarily the United States	$	227,923	$	213,487	$	184,022
Europe, Middle East & Africa	46,024		40,076		39,896
Rest of world	34,685		25,708		30,285
Total revenue	$	308,632	$	279,271	$	254,203

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


	Year ended September 30,
($ in thousands)	2021		2020		2019
Transferred at a point in time	$	274,960	$	253,371	$	231,387
Transferred over time	33,672		25,900		22,816
Total revenue	$	308,632	$	279,271	$	254,203

Contract with Customer, Asset and Liability

Changes in unearned revenue were:


	Year ended September 30,
($ in thousands)	2021		2020		2019
Unearned revenue, beginning of period	$	9,341	$	5,025	$	3,933
Billings	48,972		35,213		43,071
Revenue recognized	(42,825)		(30,897)		(41,979)
Unearned revenue, end of period	$	15,488	$	9,341	$	5,025

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Income Taxes

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


	Year ended September 30,
	2021		2020		2019
United States	$	5,380	$	3,756	$	7,981
International	3,619		3,707		3,164
Income before income taxes	$	8,999	$	7,463	$	11,145

Schedule of Components of Income Tax Provision

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


	Year ended September 30,
	2021		2020		2019
Current:
Federal	$	1,388	$	709	$	950
State	242		572		290
Foreign	1,678		1,128		746
Deferred:
Federal	(3,627)		(2,911)		(825)
State	(618)		—		—
Foreign	(430)		(446)		26
Income tax (benefit) expense	$	(1,367)	$	(948)	$	1,187

Schedule of Net Deferred Tax Asset

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


	As of September 30,
	2021		2020

Non-current deferred tax asset	$	439	$	389

Non-current deferred tax liability	(13,493)		(17,171)
Net deferred tax liability	$	(13,054)	$	(16,782)

Depreciation and amortization	$	(1,399)	$	(1,037)
Lease asset	(3,683)		(3,415)
Lease liability	4,941		4,477
Inventories	755		979
Compensation costs	4,064		3,698
Other accruals	6,387		3,985
Tax credit carryforwards	3,026		6,021
Valuation allowance	(2,186)		(4,372)
Identifiable intangible assets	(24,959)		(27,118)

Net deferred tax (liability) asset	$	(13,054)	$	(16,782)

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):


	Year ended September 30,
	2021		2020		2019
Statutory income tax amount	$	1,890	$	1,567	$	2,341
Increase (decrease) resulting from:
State taxes, net of federal benefits	319		392		196


Transaction costs	60		143		—
Employee stock purchase plan	79		127		59
Foreign operations	556		431		225
Non-deductible executive compensation	150		115		171
Change in valuation allowance	(2,187)		173		520
Capital Loss Expiration	2,301		—		—
Utilization of research and development tax credits	(3,116)		(2,881)		(2,173)

Deferred balance sheet remeasure	(952)		—		9
ASU 2016-09 excess stock compensation	(1,131)		(673)		(56)
Contingent consideration	1,212		(27)		250
Changes from provision to return	(458)		(111)		(511)
Adjustment of tax contingency reserves	329		151		146
U.S. deduction for foreign export sales	(630)		(355)		(146)


Global intangible low-taxed income	33		31		162
Other, net	178		(31)		(6)
Income tax (benefit) expense	$	(1,367)	$	(948)	$	1,187

Schedule of Unrecognized Tax Benefits

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


	Year ended September 30,
	2021		2020		2019
Unrecognized tax benefits at beginning of fiscal year	$	2,600	$	1,713	$	1,561
Increases related to:
Prior year income tax positions	40		756		9
Current year income tax positions	507		425		314
Decreases related to:
Prior year income tax positions	(155)		—		(34)
Settlements	—		(7)		—
Expiration of statute of limitations	(84)		(287)		(137)
Unrecognized tax benefits at end of fiscal year	$	2,908	$	2,600	$	1,713

Stock-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Expense

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


	Year ended September 30,
	2021		2020		2019
Cost of sales	$	371	$	291	$	174
Sales and marketing	2,069		2,318		1,708
Research and development	1,032		1,197		996
General and administrative	4,663		3,431		2,777
Stock-based compensation before income taxes	8,135		7,237		5,655
Income tax benefit	(1,755)		(1,523)		(1,174)
Stock-based compensation after income taxes	$	6,380	$	5,714	$	4,481

Schedule of Stock Option Activity

Below is a summary of our stock options as of September 30, 2021 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, 2020	3,393	$12.20
Granted	531	17.78
Exercised	(742)	11.47
Forfeited / Canceled	(230)	14.66
Balance at September 30, 2021	2,952	$13.20	3.6	$	23,232

Exercisable at September 30, 2021	1,927	$11.55	2.5	$	18,246

Schedule of Valuation Assumptions


	Year ended September 30,
	2021		2020		2019
Weighted average per option grant date fair value	$	6.97	$	6.17	$	4.48
Assumptions used for option grants:
Risk free interest rate	0.51% - 1.035%		0.37% - 1.73%		1.60% - 2.93%
Expected term	6.00 years		6.00 years		6.00 years
Expected volatility	44% - 46%		36% - 44%		33% - 35%
Weighted average volatility	45%		36%		34%
Expected dividend yield	0%		0%		0%

Schedule of Weighted Average Exercise Price Range and Remaining Contractual Life

As of September 30, 2021, 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 - $9.35	463	1.26	$	8.44	463	$	8.44
$9.70 - $10.81	470	2.00	$	10.32	455	$	10.32
$10.96 - $11.87	463	3.64	$	11.55	323	$	11.57
$12.48 - $13.50	414	2.15	$	13.14	413	$	13.14
$13.76 - $16.75	453	5.64	$	15.28	93	$	13.81
$17.10 - $17.94	593	5.53	$	17.56	171	$	17.75
$18.20 - $25.15	96	6.20	$	21.63	9	$	18.20
$7.40 - $25.15	2,952	3.57	$	13.20	1,927	$	11.55

Schedule of Nonvested Restricted Stock Units


	RSUs			PSUs
	Number of Awards	Weighted Average Grant Date Fair Value		Number of Awards	Weighted Average Grant Date Fair Value
Nonvested at September 30, 2020	972	$	13.20	—	$	—
Granted	366	$	18.76	18	$	25.15
Vested	(373)	$	12.80	—	$	—
Canceled	(153)	$	14.12	—	$	—
Nonvested at September 30, 2021	812	$	15.72	18	$	25.15

Summary of Significant Accounting Policies (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 3,778	$ 968
Additions	2,803	2,534
Uncollectible accounts charged to allowance, net of recoveries		276
Uncollectible accounts charged to allowance, net of recoveries	(2,647)
Balance at end of period	$ 3,934	$ 3,778

Summary of Significant Accounting Policies (Property, Equipment and Improvements, Net) (Details)	12 Months Ended
	Sep. 30, 2021
Furniture and fixtures, purchases software and other equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property, equipment and improvements depreciation life	3 years
Furniture and fixtures, purchases software and other equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property, equipment and improvements depreciation life	10 years
Building Improvements and buildings \| Minimum
Property, Plant and Equipment [Line Items]
Property, equipment and improvements depreciation life	10 years
Building Improvements and 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, 2021
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)	12 Months Ended
	Sep. 30, 2021 segment
Goodwill [Line Items]
Number of reportable segments	2

Summary of Significant Accounting Policies (Warranty) (Details)	12 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Warranty period products, minimum	1 year
Warranty period products, maximum	5 years
Warranty period software	1 year

Summary of Significant Accounting Policies (Revenue Recognition) (Details) - Subscription and Circulation	12 Months Ended
	Sep. 30, 2021
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, 2021	Sep. 30, 2020	Sep. 30, 2019
Accounting Policies [Abstract]
Foreign currency net transaction gains (losses)	$ (0.1)	$ (0.6)	$ 0.4

Summary of Significant Accounting Policies (Net Income Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Accounting Policies [Abstract]
Net income	$ 10,366	$ 8,411	$ 9,958
Denominator for basic net income per common share — weighted average shares outstanding	32,111,000	28,849,000	27,905,000
Effect of dilutive securities:
Stock options and restricted stock units	1,283,000	697,000	649,000
Denominator for diluted net income per common share — adjusted weighted average shares	33,394,000	29,546,000	28,554,000
Net income per common share:
Basic	$ 0.32	$ 0.29	$ 0.36
Diluted net income per common share:
Diluted	$ 0.31	$ 0.28	$ 0.35
Antidilutive securities excluded from computation of earnings per share	35,160	1,143,411	744,513

Acquisitions Details (Details) - USD ($)				1 Months Ended	3 Months Ended			12 Months Ended
Acquisitions Details (Details) - USD ($)	Jul. 06, 2021	Mar. 26, 2021	Dec. 13, 2019	Apr. 30, 2020	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Jan. 22, 2018	Nov. 01, 2016
Business Acquisition [Line Items]
Change in fair value of contingent consideration								$ 5,772,000	$ (128,000)		$ 1,190,000
Operating lease right-of-use assets								15,684,000	14,334,000
Operating lease liabilities								18,368,000	16,193,000
Goodwill								225,522,000	210,135,000		153,422,000
Opengear
Business Acquisition [Line Items]
Cash paid at closing			$ 148,058,000
Weighted average useful life identifiable intangibles			13 years 4 months 24 days
Goodwill			$ 57,088,000
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles								800,000
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets								(1,100,000)
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities								300,000
Opengear \| General and Administrative
Business Acquisition [Line Items]
Acquisition costs								300,000	2,700,000		300,000
Haxiot
Business Acquisition [Line Items]
Cash paid at closing		$ 7,100,000
Cash acquired		50,000
Goodwill		$ 8,605,000
Haxiot \| General and Administrative
Business Acquisition [Line Items]
Acquisition costs								$ 300,000
Ctek
Business Acquisition [Line Items]
Cash paid at closing	$ 12,012,000
Goodwill	$ 4,867,000
Ctek \| General and Administrative
Business Acquisition [Line Items]
Acquisition costs					$ 300,000
Maximum
Business Acquisition [Line Items]
Useful life identifiable intangibles								14 years 6 months
Earn-out payments \| Opengear \| 2019
Business Acquisition [Line Items]
Earn-out payment maximum										$ 5,000,000
Earn-out payments \| Opengear \| 2020
Business Acquisition [Line Items]
Earn-out payment maximum																$ 10,000,000
Earn-out payments \| Forecast \| Haxiot \| 2021
Business Acquisition [Line Items]
Earn-out payment maximum															$ 3,000,000
Business Combination, Contingent Consideration, Liability															0
Earn-out payments \| Forecast \| Haxiot \| 2022
Business Acquisition [Line Items]
Earn-out payment maximum														$ 5,000,000
Business Combination, Contingent Consideration, Liability														5,900,000
Earn-out payments \| Forecast \| Ctek \| 2021
Business Acquisition [Line Items]
Earn-out payment maximum															$ 500,000
Earn-out payments \| Forecast \| Ctek \| 2022
Business Acquisition [Line Items]
Earn-out payment maximum														$ 1,000,000
Earn-out payments \| Forecast \| Ctek \| 2023
Business Acquisition [Line Items]
Earn-out payment maximum													$ 1,500,000
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						$ 10,000,000	$ 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		$ 0
Estimate of Fair Value Measurement \| Fair Value, Measurements, Recurring \| Contingent Consideration
Business Acquisition [Line Items]
Contingent consideration fair value								$ 6,200,000	$ 4,228,000
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				12 Months Ended
	Jul. 06, 2021	Mar. 26, 2021	Dec. 13, 2019	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Business Acquisition [Line Items]
Cash				$ 19,108	$ 136,098	$ 0
Goodwill				225,522	$ 210,135	$ 153,422
Ctek
Business Acquisition [Line Items]
Cash	$ 12,012
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability	300			$ 300
Total consideration transferred	12,734
Fair value of net tangible assets acquired	397
Deferred tax liability on identifiable intangible assets	1,000
Goodwill	4,867
Total assets acquired and liabilities assumed	12,734
Haxiot
Business Acquisition [Line Items]
Cash		$ 7,100
Cash		7,096
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability		5,900
Total consideration transferred		12,996
Fair value of net tangible assets acquired		86
Deferred tax liability on identifiable intangible assets		1,145
Goodwill		8,605
Total assets acquired and liabilities assumed		12,996
Opengear
Business Acquisition [Line Items]
Cash			$ 148,058
Contingent consideration			5,100
Total consideration transferred			153,158
Fair value of net tangible assets acquired			18,096
Deferred tax liability on identifiable intangible assets			27,126
Goodwill			57,088
Total assets acquired and liabilities assumed			153,158
Customer Relationships \| Ctek
Business Acquisition [Line Items]
Identifiable intangible assets	5,100
Customer Relationships \| Haxiot
Business Acquisition [Line Items]
Identifiable intangible assets		3,900
Customer Relationships \| Opengear
Business Acquisition [Line Items]
Identifiable intangible assets			79,000
Trademarks \| Ctek
Business Acquisition [Line Items]
Identifiable intangible assets	70
Trademarks \| Haxiot
Business Acquisition [Line Items]
Identifiable intangible assets		500
Trademarks \| Opengear
Business Acquisition [Line Items]
Identifiable intangible assets			8,000
Purchased and Core Technology \| Ctek
Business Acquisition [Line Items]
Identifiable intangible assets	$ 1,300
Purchased and Core Technology \| Haxiot
Business Acquisition [Line Items]
Identifiable intangible assets		$ 1,050
Purchased and Core Technology \| Opengear
Business Acquisition [Line Items]
Identifiable intangible assets			$ 18,100

Goodwill and other Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Oct. 07, 2020	Sep. 30, 2020	Sep. 30, 2019
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 224,643			$ 225,059
Accumulated amortization	(106,614)			(103,811)
Net	118,029			121,248
Goodwill	225,522			210,135	$ 153,422
Enterpise Routers
Finite-Lived Intangible Assets [Line Items]
Goodwill		$ 32,700	$ 32,700
OEM Solutions
Finite-Lived Intangible Assets [Line Items]
Goodwill		63,400	53,300
Console Servers
Finite-Lived Intangible Assets [Line Items]
Goodwill		60,200	59,200
Infrastructure Mgmt.
Finite-Lived Intangible Assets [Line Items]
Goodwill		15,400	15,400
IoT Solutions
Finite-Lived Intangible Assets [Line Items]
Goodwill		$ 49,500	$ 49,500
Measurement Input, Control Premium [Member] \| Maximum
Finite-Lived Intangible Assets [Line Items]
Goodwill Valuation Implied Control Premium		5.40%	10.00%
Measurement Input, Control Premium [Member] \| Minimum
Finite-Lived Intangible Assets [Line Items]
Goodwill Valuation Implied Control Premium		(4.50%)	5.00%
Purchased and Core Technology
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	69,162			76,011
Accumulated amortization	(50,701)			(55,482)
Net	18,461			20,529
License Agreements
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	112			112
Accumulated amortization	(112)			(112)
Net	0			0
Patents and Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	23,491			22,836
Accumulated amortization	(14,978)			(13,535)
Net	8,513			9,301
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	130,278			125,500
Accumulated amortization	(39,973)			(34,232)
Net	90,305			91,268
Non-compete Agreements
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	600			600
Accumulated amortization	(600)			(450)
Net	0			150
Order backlog
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	1,000			0
Accumulated amortization	(250)			0
Net	$ 750			$ 0

Goodwill and other Identifiable Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 16,534	$ 14,754	$ 8,818
2022	16,570
2023	13,579
2024	12,865
2025	9,408
2026	9,176
Cost of Sales and General and Administrative Expense [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 16,534	$ 14,754	$ 8,818

Goodwill and other Identifiable Intangible Assets (Goodwill) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Goodwill [Line Items]
Goodwill	$ 210,135	$ 153,422
Acquisition	13,472	56,242
Goodwill, Purchase Accounting Adjustments	847
Foreign currency translation adjustment	1,068	471
Goodwill	225,522	210,135
IoT Solutions
Goodwill [Line Items]
Goodwill	49,770	49,903
Acquisition	0	0
Goodwill, Purchase Accounting Adjustments	0
Foreign currency translation adjustment	572	(133)
Goodwill	50,342	49,770
IoT Products and Services
Goodwill [Line Items]
Goodwill	160,365	103,519
Acquisition	13,472	56,242
Goodwill, Purchase Accounting Adjustments	847
Foreign currency translation adjustment	496	604
Goodwill	$ 175,180	$ 160,365

Segment Information and Major Customers Summary of Operating Results by Segment (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2021 USD ($) segment	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| segment	2
Number of operating segments \| segment	4
Segment Reporting Information [Line Items]
Revenue	$ 308,632	$ 279,271	$ 254,203
Gross profit	166,657	143,972	119,035
Operating income (loss)	10,528	11,317	10,072
Depreciation and amortization	20,877	19,299	13,396
IoT Products & Services
Segment Reporting Information [Line Items]
Revenue	264,173	249,530	215,287
Gross profit	144,472	129,349	100,522
Operating income (loss)	18,212	27,216	21,806
Depreciation and amortization	13,109	11,521	6,102
IoT Solutions
Segment Reporting Information [Line Items]
Revenue	44,459	29,741	38,916
Gross profit	22,185	14,623	18,513
Operating income (loss)	(7,684)	(15,899)	(11,734)
Depreciation and amortization	$ 7,768	$ 7,778	$ 7,294

Segment Information and Major Customers Expended for Property, Plant and Equipment by Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Segment Reporting Information [Line Items]
Expended for property, plant and equipment	$ 2,257	$ 899	$ 9,335
Inventory Transfer To Property, Plant And Equipment	1,838	1,363	1,064
IoT Products & Services
Segment Reporting Information [Line Items]
Expended for property, plant and equipment	2,257	878	8,863
IoT Solutions
Segment Reporting Information [Line Items]
Expended for property, plant and equipment	$ 0	$ 21	$ 472

Segment Information and Major Customers Total Assets by Segment (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 619,531	$ 528,682
IoT Products & Services
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	386,934	387,578
IoT Solutions
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	80,165	86,975
Unallocated
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 152,432	$ 54,129

- 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, 2021	Sep. 30, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Net property, equipment and improvements	$ 12,132	$ 11,507
North America, primarily United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net property, equipment and improvements	11,941	11,297
International, primarily Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Net property, equipment and improvements	$ 191	$ 210

Segment Information and Major Customers Geographic revenue (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2021 USD ($) customer	Sep. 30, 2020 USD ($) customer	Sep. 30, 2019 USD ($)
Segment Reporting Information [Line Items]
Revenue \| $	$ 308,632	$ 279,271	$ 254,203
Number of customer representing over ten percent of revenue	0	0
Number of customer representing over ten percent of consolidated accounts receivable		1
Accounts Receivable \| Customer Concentration Risk \| Operating Segments
Segment Reporting Information [Line Items]
Percentage of concentration		17.20%
United States \| U.S. Export Net Sales \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of concentration	26.20%	25.10%	28.50%

Selected Balance Sheet Data (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Accounts receivable, net:
Accounts receivable	$ 51,828	$ 65,027
Less allowance for doubtful accounts	3,934	3,778
Less reserve for future credit returns and pricing adjustments	4,156	2,022
Total accounts receivable, net	43,738	59,227
Inventories:
Raw materials	27,265	14,009
Work in process	14	0
Finished goods	16,642	37,559
Total Inventories	43,921	51,568
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	41,177	40,015
Less accumulated depreciation and amortization	29,045	28,508
Total property, equipment and improvements, net	12,132	11,507
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	9,367	7,844
Equipment
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	16,878	17,153
Purchased Software
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	2,868	3,770
Furniture and Fixtures
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	2,174	3,236
Subscriber assets
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	$ 6,982	$ 5,104

(Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Fair Value, Inputs, Level 1 \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
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 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	6,200	4,228	$ 5,407
Fair Value, Inputs, Level 3 \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	6,200	4,228
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	6,200	4,228
Estimate of Fair Value Measurement \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	6,200	4,228
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	$ 6,200	$ 4,228

Fair Value Measurements (Reconciliation of Liability) (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at beginning of period	$ 4,228	$ 5,407
Purchase price contingent consideration	6,200	5,100
Contingent consideration payments	(10,000)	(6,151)
Change in fair value of contingent consideration	(5,772)	128
Fair value at end of period	$ 6,200	$ 4,228

Fair Value Measurements (Details) - USD ($)		1 Months Ended	3 Months Ended		12 Months Ended
Fair Value Measurements (Details) - USD ($)	Oct. 05, 2015	Apr. 30, 2020	Mar. 31, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Sep. 30, 2017	Jul. 06, 2021	Mar. 26, 2021	Dec. 13, 2019	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					$ 6,200,000	$ 4,228,000
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
Change in fair value of contingent consideration					5,772,000	(128,000)		$ 1,190,000
Goodwill					225,522,000	210,135,000		153,422,000
Fair Value, Inputs, Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value					6,200,000	4,228,000		5,407,000
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					6,200,000	4,228,000
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		$ 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
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Goodwill														$ 57,088,000
Opengear \| Contingent consideration on acquired business
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Change in fair value of contingent consideration			$ 10,000,000	$ 900,000
Haxiot
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Goodwill													$ 8,605,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability													$ 5,900,000
Ctek
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Goodwill												$ 4,867,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability					$ 300,000							$ 300,000

Debt - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Debt - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019	Mar. 15, 2021	Dec. 13, 2019
Line of Credit Facility [Line Items]
Maximum borrowing capacity					$ 150,000
Weighted average interest rate on debt	1.34%
Debt issuance costs	$ 2,300			$ 2,600
Proceeds from long-term debt	617	$ 119,018	$ 0
Debt Instrument [Line Items]
Proceeds from long-term debt	617	119,018	0
Repayments of long-term debt	15,624	$ 55,893	$ 0
Debt issuance costs	$ 2,300			2,600
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				$ 200,000	$ 100,000

Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Debt Instrument [Line Items]
Total loans	$ 48,118	$ 63,125
Less unamortized issuance costs	(2,319)	(2,173)
Long-term Debt, Current Maturities	0	(1,972)
Total long-term debt, net of current portion	$ 45,799	58,980
Weighted average interest rate on debt	1.34%
Revolving loan
Debt Instrument [Line Items]
Total loans	$ 48,118	15,000
Term loan
Debt Instrument [Line Items]
Total loans	$ 0	$ 48,125

Debt Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Debt Disclosure [Abstract]
2022	$ 0
2023	0
2024	0
2025	0
2026	48,118
Total long-term debt	$ 48,118	$ 63,125

Product Warranty Obligation (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 942	$ 1,012	$ 1,172
Warranties issued	244	666	305
Settlements made	(479)	(736)	(465)
Ending balance	$ 707	$ 942	$ 1,012

Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Assets and Liabilities, Lessee [Abstract]
Operating lease right-of-use assets	$ 15,684	$ 14,334
Total lease assets	15,684	14,334
Current portion of operating lease liabilities	2,633	2,527
Operating lease liabilities	18,368	16,193
Total lease liabilities	$ 21,001	$ 18,720

Leases - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Lease, Cost [Abstract]
Operating lease cost	$ 3,504	$ 3,341
Variable lease cost	1,094	744
Short-term lease cost	127	175
Total lease cost	$ 4,725	$ 4,260

Leases - Other Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash paid for leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 2,707	$ 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	3,785	1,073
Leasehold Improvements, Gross	$ 1,000	$ 0
Weighted average remaining lease term [Abstract]
Weighted average remaining lease term- operating leases	8 years 10 months 24 days
Weighted Average Discount Rate Leases [Abstract]
Weighted average discount rate - operating leases	3.50%

Leases - Maturity of Operating Lease Liability (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2022	$ 3,570
2023	3,288
2024	2,945
2025	2,821
2026	2,610
Thereafter	9,394
Total future undiscounted lease payments	24,628
Less imputed interest	(3,627)
Total reported lease liability	$ 21,001	$ 18,720

Restructuring (Details) $ in Thousands	3 Months Ended					6 Months Ended	12 Months Ended
Restructuring (Details) $ in Thousands	Jun. 30, 2021 USD ($) employee	Mar. 31, 2021 USD ($) employee	Dec. 31, 2020 USD ($) employee	Mar. 31, 2020 USD ($)	Jun. 30, 2017 USD ($) employee	Sep. 30, 2018 USD ($) employee	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2017 USD ($)
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			$ 0				$ 0	$ 0	$ 453
Restructuring charge							995	133	0
Payments for restructuring							(935)	(117)	(359)
Restructuring reversals							0	(16)	(87)
Restructuring foreign currency fluctuation							60	0	(7)
Restructuring reserve, ending balance						$ 453	0	0	0
Employee Termination Costs \| 2020 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			0				0	0	0
Restructuring charge							0	133	0
Payments for restructuring							0	(117)	0
Restructuring reversals							0	(16)	0
Restructuring foreign currency fluctuation							0	0	0
Restructuring reserve, ending balance						0	0	0	0
Employee Termination Costs \| Manufacturing Transition
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			0				0	0	147
Restructuring charge							0	0	0
Payments for restructuring							0	0	(108)
Restructuring reversals							0	0	(39)
Restructuring foreign currency fluctuation							0	0	0
Restructuring reserve, ending balance						147	0	0	0
Employee Termination Costs \| 2017 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			0				0	0	293
Restructuring charge							0	0	0
Payments for restructuring							0	0	(233)
Restructuring reversals							0	0	(53)
Restructuring foreign currency fluctuation							0	0	(7)
Restructuring reserve, ending balance						293	0	0	0
Employee Termination Costs \| 2021 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			0				0	0	0
Restructuring charge							995	0	0
Payments for restructuring							(935)	0	0
Restructuring reversals							0	0	0
Restructuring foreign currency fluctuation							60	0	0
Restructuring reserve, ending balance						0	0	0	0
Other \| 2017 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			$ 0				0	0	13
Restructuring charge							0	0	0
Payments for restructuring							0	0	(18)
Restructuring reversals							0	0	5
Restructuring foreign currency fluctuation							0	0	0
Restructuring reserve, ending balance						$ 13	$ 0	$ 0	$ 0
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 \| 2021 Restructuring
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated \| employee			19
IoT Products & Services \| Employee Termination Costs \| 2020 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring charge				$ 38
IoT Products & Services \| Employee Termination Costs \| Manufacturing Transition
Restructuring Reserve [Roll Forward]
Restructuring charge						$ 500
IoT Products & Services \| Employee Termination Costs \| 2017 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring charge					$ 2,300
IoT Products & Services \| Employee Termination Costs \| 2021 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring charge	$ 100	$ 200	$ 700
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 Termination Costs \| 2020 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring charge	$ 95

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Total revenues	$ 308,632	$ 279,271	$ 254,203
North America, primarily United States
Disaggregation of Revenue [Line Items]
Total revenues	227,923	213,487	184,022
Europe, Middle East & Africa
Disaggregation of Revenue [Line Items]
Total revenues	46,024	40,076	39,896
Rest of world
Disaggregation of Revenue [Line Items]
Total revenues	34,685	25,708	30,285
Transferred at a point in time
Disaggregation of Revenue [Line Items]
Total revenues	274,960	253,371	231,387
Transferred over time
Disaggregation of Revenue [Line Items]
Total revenues	$ 33,672	$ 25,900	$ 22,816

- 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).

+ References

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+ Details

Revenue - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Depreciation expense	$ 1.9	$ 1.5	$ 1.1
Period of amortization	3 years
Equipment
Disaggregation of Revenue [Line Items]
Contract assets	$ 1.9	$ 2.0

Revenue - Unearned Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Unearned Revenue [Roll Forward]
Unearned revenue, beginning of period	$ 9,341	$ 5,025	$ 3,933
Billings	48,972	35,213	43,071
Revenue recognized	(42,825)	(30,897)	(41,979)
Unearned revenue, end of period	$ 15,488	$ 9,341	$ 5,025

Revenue - Performance Obligations (Details) $ in Millions	Sep. 30, 2021 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 17.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 14.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 \| 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]: 2021-10-01 \| 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, 2021	Sep. 30, 2018	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Valuation allowance	$ 2,186		$ 4,372
Income tax provision for Tax Cuts & Jobs Act of 2017		$ 3,000
Tax Credit Carryforward [Line Items]
U.S. capital loss carryforward	$ 500
Latest Tax Year
Tax Credit Carryforward [Line Items]
Open Tax Year	2018
United States Federal Tax Jurisdiction
Tax Credit Carryforward [Line Items]
Federal and state research and development tax credits	$ 2,500
U.S. capital loss carryforward	200
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, 2021	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
United States	$ 5,380	$ 3,756	$ 7,981
International	3,619	3,707	3,164
Income before income taxes	$ 8,999	$ 7,463	$ 11,145

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Topic 944
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
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Reference 9: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
-Topic 280
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-Section 50
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Current:
Federal	$ 1,388	$ 709	$ 950
State	242	572	290
Foreign	1,678	1,128	746
Deferred:
U.S.	(3,627)	(2,911)	(825)
State	(618)	0	0
Foreign	(430)	(446)	26
Income tax (benefit) expense	$ (1,367)	$ (948)	$ 1,187

- 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, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Non-current deferred tax asset	$ 439	$ 389
Non-current deferred tax liability	(13,493)	(17,171)
Net deferred tax liability	(13,054)	(16,782)
Depreciation and amortization	(1,399)	(1,037)
Lease asset	(3,683)	(3,415)
Lease liability	4,941	4,477
Inventories	755	979
Compensation costs	4,064	3,698
Other accruals	6,387	3,985
Tax credit carryforwards	3,026	6,021
Valuation allowance	(2,186)	(4,372)
Identifiable intangible assets	$ (24,959)	$ (27,118)

Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Statutory income tax amount	$ 1,890	$ 1,567	$ 2,341
State taxes, net of federal benefits	319	392	196
Transaction costs	60	143	0
Employee stock purchase plan	79	127	59
Foreign operations	556	431	225
Non-deductible executive compensation	150	115	171
Change in valuation allowance	(2,187)	173	520
Utilization of research and development tax credits	(3,116)	(2,881)	(2,173)
Deferred balance sheet remeasure	(952)	0	9
ASU 2016-09 excess stock compensation	(1,131)	(673)	(56)
Contingent consideration	1,212	(27)	250
Changes from provision to return	(458)	(111)	(511)
Adjustment of tax contingency reserves	329	151	146
U.S. deduction for foreign export sales	(630)	(355)	(146)
Global intangible low-taxed income	33	31	162
Other, net	178	(31)	(6)
Income tax (benefit) expense	(1,367)	(948)	1,187
Effective Income Tax Rate Reconciliation, Capital Loss Expiration	$ 2,301	$ 0	$ 0

Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, beginning balance	$ 2,600	$ 1,713	$ 1,561
Increases related to prior year income tax positions	40	756	9
Increases related to current year income tax positions	507	425	314
Decreases related to prior year income tax positions	(155)	0	(34)
Decreases related to settlements	0	(7)	0
Decreases related to expiration of statute of limitations	(84)	(287)	(137)
Unrecognized tax benefits, ending balance	$ 2,908	$ 2,600	$ 1,713

Income Taxes (Unrecognized Tax Benefits, Additional Information) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Income Tax Contingency [Line Items]
Unrecognized tax benefits that would impact effective tax rate	$ 2,700
Unrecognized tax benefits	2,908	$ 2,600	$ 1,713	$ 1,561
Accrued income tax penalties and interest for unrecognized tax benefits	100	$ 100
Noncurrent income taxes payable
Income Tax Contingency [Line Items]
Unrecognized tax benefits	2,300
Noncurrent deferred tax assets
Income Tax Contingency [Line Items]
Unrecognized tax benefits	600
Maximum
Income Tax Contingency [Line Items]
Decrease in unrecognized tax benefits that is reasonably possible	$ 800

Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Mar. 31, 2019	Sep. 30, 2021	Sep. 30, 2020
Equity [Abstract]
Shares Issued, Price Per Share		$ 19.50
Proceeds from Issuance of Common Stock	$ 0	$ 73,830	$ 0
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs		$ 300
Stock Issued During Period, Shares, New Issues		4,025

Stock-Based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019	Jan. 29, 2021	Jan. 29, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	116,195	103,492	93,128
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	$ 2,100	$ 1,800	$ 1,100
Proceeds from employee stock purchase plan transactions	1,214	1,065	1,058
Total intrinsic value of all options exercised	6,500	3,700	2,100
Total grant date fair value of shares vested	2,600	3,700	3,500
Proceeds from Stock Options Exercised	8,525	5,902	4,874
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost nonvested awards	$ 5,700
Weighted average period, unrecognized compensation cost, nonvested awards	1 year 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 3 months 18 days
Total unrecognized compensation cost, restricted stock units	$ 9,200
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%
Proceeds from employee stock purchase plan transactions	$ 1,200	$ 1,100	$ 1,100
Common shares issued to employees	78,644	117,826	111,036
Shares available for future issuance	633,070
The 2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for future grants	1,413,615
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 Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized					3,425,000
The 2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized				1,400,000
The 2021 Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	7 years
Vesting period	4 years
Director \| The 2020 Plan \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Director \| The 2021 Plan \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	1 year
Vesting period	4 years
Director \| The 2021 Plan \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
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 2021 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, 2021	Sep. 30, 2020	Sep. 30, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 8,135	$ 7,237	$ 5,655
Income tax benefit	(1,755)	(1,523)	(1,174)
Stock-based compensation after income taxes	6,380	5,714	4,481
Cost of Sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	371	291	174
Sales and Marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	2,069	2,318	1,708
Research and Development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	1,032	1,197	996
General and Administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 4,663	$ 3,431	$ 2,777

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, 2021 USD ($) $ / shares shares
Options Outstanding [Roll Forward]
Options Outstanding, Beginning Balance \| shares	3,393
Options Outstanding, Granted \| shares	531
Options Outstanding, Exercised \| shares	(742)
Options Outstanding, Forfeited / Cancelled \| shares	(230)
Options Outstanding, Ending Balance \| shares	2,952
Options Outstanding, Exercisable \| shares	1,927
Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price, Beginning Balance	$ 12.20
Weighted Average Exercise Price, Granted	17.78
Weighted Average Exercise Price, Exercised	11.47
Weighted Average Exercise Price, Forfeited / Cancelled	14.66
Weighted Average Exercise Price, Ending Balance	13.20
Weighted Average Exercise Price, Exercisable	$ 11.55
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted Average Remaining Contractual Term, Outstanding	3 years 7 months 6 days
Weighted Average Remaining Contractual Term, Exercisable	2 years 6 months
Aggregate Intrinsic Value, Outstanding \| $	$ 23,232
Aggregate Intrinsic Value, Exercisable \| $	$ 18,246
Closing Stock Price	$ 21.02

Stock-Based Compensation (Fair Value Assumptions) (Details) - Stock Options - $ / shares	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average per option grant date fair value	$ 6.97	$ 6.17	$ 4.48
Assumptions Used For Options Grants [Abstract]
Risk free interest rate, minimum	0.51%	0.37%	1.60%
Risk free interest rate, maximum	1.035%	1.73%	2.93%
Expected term	6 years	6 years	6 years
Expected volatility rate, minimum	44.00%	36.00%	33.00%
Expected volatility rate, maximum	46.00%	44.00%	35.00%
Weighted average volatility	45.00%	36.00%	34.00%
Expected dividend yield	0.00%	0.00%	0.00%

Stock-Based Compensation (Exercise Price Range) (Details) - Stock Options shares in Thousands	12 Months Ended
	Sep. 30, 2021 $ / 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	$ 9.35
Options Outstanding \| shares	463
Weighted Average Remaining Contractual Term	1 year 3 months 3 days
Weighted Average Exercise Price, Options Outstanding	$ 8.44
Number of Shares Vested, Options Exercisable \| shares	463
Weighted Average Exercise Price, Options Exercisable	$ 8.44
$9.04 - $10.33
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	9.70
Exercise Price Range, Upper Range	$ 10.81
Options Outstanding \| shares	470
Weighted Average Remaining Contractual Term	2 years
Weighted Average Exercise Price, Options Outstanding	$ 10.32
Number of Shares Vested, Options Exercisable \| shares	455
Weighted Average Exercise Price, Options Exercisable	$ 10.32
$10.35 - $11.23
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	10.96
Exercise Price Range, Upper Range	$ 11.87
Options Outstanding \| shares	463
Weighted Average Remaining Contractual Term	3 years 7 months 20 days
Weighted Average Exercise Price, Options Outstanding	$ 11.55
Number of Shares Vested, Options Exercisable \| shares	323
Weighted Average Exercise Price, Options Exercisable	$ 11.57
$11.24 - $12.63
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	12.48
Exercise Price Range, Upper Range	$ 13.50
Options Outstanding \| shares	414
Weighted Average Remaining Contractual Term	2 years 1 month 24 days
Weighted Average Exercise Price, Options Outstanding	$ 13.14
Number of Shares Vested, Options Exercisable \| shares	413
Weighted Average Exercise Price, Options Exercisable	$ 13.14
$12.64 - $13.92
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	13.76
Exercise Price Range, Upper Range	$ 16.75
Options Outstanding \| shares	453
Weighted Average Remaining Contractual Term	5 years 7 months 20 days
Weighted Average Exercise Price, Options Outstanding	$ 15.28
Number of Shares Vested, Options Exercisable \| shares	93
Weighted Average Exercise Price, Options Exercisable	$ 13.81
$13.93 - $17.94
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	17.10
Exercise Price Range, Upper Range	$ 17.94
Options Outstanding \| shares	593
Weighted Average Remaining Contractual Term	5 years 6 months 10 days
Weighted Average Exercise Price, Options Outstanding	$ 17.56
Number of Shares Vested, Options Exercisable \| shares	171
Weighted Average Exercise Price, Options Exercisable	$ 17.75
$17.95 - $18.20
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	18.20
Exercise Price Range, Upper Range	$ 25.15
Options Outstanding \| shares	96
Weighted Average Remaining Contractual Term	6 years 2 months 12 days
Weighted Average Exercise Price, Options Outstanding	$ 21.63
Number of Shares Vested, Options Exercisable \| shares	9
Weighted Average Exercise Price, Options Exercisable	$ 18.20
$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	$ 25.15
Options Outstanding \| shares	2,952
Weighted Average Remaining Contractual Term	3 years 6 months 25 days
Weighted Average Exercise Price, Options Outstanding	$ 13.20
Number of Shares Vested, Options Exercisable \| shares	1,927
Weighted Average Exercise Price, Options Exercisable	$ 11.55

Stock-Based Compensation (Non-Vested Options) (Details) shares in Thousands	12 Months Ended
	Sep. 30, 2021 $ / shares shares
Restricted Stock Units
Nonvested Number of Restricted Stock Units [Roll Forward]
Number of Restricted Stock Units, Beginning Balance \| shares	972
Number of Restricted Stock Units, Granted \| shares	366
Number of Restricted Stock Units, Vested \| shares	(373)
Number of Restricted Stock Units, Canceled \| shares	(153)
Number of Restricted Stock Units, Ending Balance \| shares	812
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	$ 13.20
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Granted \| $ / shares	18.76
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested \| $ / shares	12.80
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Canceled \| $ / shares	14.12
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance \| $ / shares	$ 15.72
Performance Shares
Nonvested Number of Restricted Stock Units [Roll Forward]
Number of Restricted Stock Units, Beginning Balance \| shares	0
Number of Restricted Stock Units, Granted \| shares	18
Number of Restricted Stock Units, Vested \| shares	0
Number of Restricted Stock Units, Canceled \| shares	0
Number of Restricted Stock Units, Ending Balance \| shares	18
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	$ 0
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Granted \| $ / shares	25.15
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested \| $ / shares	0
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Canceled \| $ / shares	0
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance \| $ / shares	$ 25.15

Employee Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Defined Contribution Plan Disclosure [Line Items]
Matching contributions, amount	$ 2.4	$ 1.7	$ 1.8
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) - DimOnOff Inc. $ in Thousands	12 Months Ended
	Sep. 30, 2021 USD ($)
Loss Contingencies [Line Items]
Loss Contingency, Damages Sought	1.0 million
Loss Contingency, Damages Paid, Value	$ 0
Loss Contingency, Damages Sought	1.0 million
Loss Contingency, Damages Paid, Value	$ 0

Subsequent Events (Details) - USD ($) $ in Millions		12 Months Ended
Subsequent Events (Details) - USD ($) $ in Millions	Nov. 01, 2021	Sep. 30, 2021	Mar. 15, 2021	Dec. 13, 2019
Subsequent Event [Line Items]
Maximum borrowing capacity				$ 150
Weighted average interest rate on debt		1.34%
Secured Debt [Member]
Subsequent Event [Line Items]
Maximum borrowing capacity				50
Revolving Credit Facility
Subsequent Event [Line Items]
Maximum borrowing capacity			$ 200	$ 100
Subsequent Event
Subsequent Event [Line Items]
Debt Instrument, Interest Rate, Annual Amortization Rate	1.00%
Line of Credit Facility, Expiration Period	7 years
Subsequent Event \| Secured Debt [Member]
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 350
Subsequent Event \| Revolving Credit Facility
Subsequent Event [Line Items]
Maximum borrowing capacity	35
Subsequent Event \| Revolving Credit Facility \| Letter of Credit
Subsequent Event [Line Items]
Maximum borrowing capacity	10
Subsequent Event \| Revolving Credit Facility \| Swingline Subfacility
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 10
Maximum \| LIBOR
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate		3.25%
Maximum \| Subsequent Event \| LIBOR
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate	4.00%
Minimum \| LIBOR
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate		1.25%
Minimum \| Subsequent Event \| LIBOR
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate	3.75%

Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Valuation allowance - deferred tax assets
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	$ 4,372	$ 3,810	$ 3,291
Charged to costs and expenses	(2,186)	670	529
Charged to Other Accounts	0	0	0
Deductions	0	108	10
Balance at end of period	2,186	4,372	3,810
Reserve for future credit returns and pricing adjustments
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	1,476	2,677	2,560
Charged to costs and expenses	15,477	17,816	12,640
Charged to Other Accounts	0	0	0
Deductions	16,023	19,017	12,523
Balance at end of period	$ 930	$ 1,476	$ 2,677